OREANDA-NEWS. The Bank of Russia for the first time provided public joint-stock companies with forms to disclose information in annual reports on their compliance with Corporate Governance Code and also methodology for filling in these forms with specific examples on each section.

In particular, JSC shall disclose in their reports information on the composition of their  boards of directors, decision-making, role played by major shareholders, the system of compensation, risk management, etc. The document prepared by the regulator allows JSC to provide the fullest, instructive and structured information on the Code introduction to all stakeholders.

The document also contains recommendations how to explain why a JSC fails to comply with these or other principles of corporate governance or comply with them not in full. The Code's principle 'comply with or explain' means that the company has a right not to follow all of its provisions (for example, due to the specifics of its organisation and management, economic circumstances).  In this case, the JSC shall disclose the reasons of non-compliance and the alternative mechanisms being applied.

Moreover, the document provides a piece of advice on how to describe corporate governance practice in a public joint-stock company.

The Bank of Russia Board of Directors approved the Corporate Governance Code in the spring of 2014.

This document is a code of best corporate governance practices and JSC introduce it on a voluntary basis.