Country: Global / Non-Specific
Corporate governance of state-owned enterprises is a major challenge in many economies. These OECD Guidelines on Corporate Governance of State-Owned Enterprises serves as an international benchmark to help governments assess and improve the way they exercise ownership of these enterprise.
The shared experience of countries that have started to reform corporate governance of state-owned enterprises is that this is an important but also complex undertaking. A major challenge is to find a balance between the state's responsibility for actively exercising its ownership functions, such as the nomination and election of the board, while at the same time refraining from imposing undue political interference in the management of the company. Another important challenge is to ensure that there is a level-playing field in markets where private sector companies can compete with state-owned enterprises and that governments do not distort competition in the way they use their regulatory or supervisory powers. Building on practical experience, these Guidelines provide concrete suggestions on how such dilemmas can be solved.
Updated: October 25, 2021