Nebojsa Vukovic Listing, Development and Public Relations Department Banja Luka Stock Exchange Tbilisi, Corporate governance Scorecard- case study of Banja Luka Stock Exchange

Corporate governance and the BLSE 2006 – Securities Commission adopted Corporate Governance Standards (based on the Company Law and OECD Principles) 2008 – start of developing the CG Scorecard in cooperation with IFC, Securities Commission, Global Corporate Governance Forum and LOK institute 2009 – Management Board of Banja Luka Stock Exchange adopted the Scorecard

Promotion of CG Scorecard The BLSE corporate governance scorecard presented: At the International Conference of the BLSE – special panel In the publication “Banja Luka Stock Exchange Official Market” At the main web page of the Banja Luka Stock Exchange Press releases to media Available in local and English language

Why corporate governance scorecard? Standardized tool for measuring the achieved level of CG practice (comparability between companies, across industries and countries) Based on the existing corporate governance standards – adjusted to country specifics Self-assessment by companies Tool for investors and analysts in evaluations of CG Easy to use – supported by MS Excel No or very small costs of implementation Easily available to all stakeholders via internet

Structure of the scorecard

Implementation of scorecard The IFC and BLSE evaluated 8 companies listed on the stock exchange using scorecard Average score for 8 companies was 56.47%, Detected weak areas in the CG implementation: Equal treatment of shareholders Roles and responsibility of the boards Audit and internal control system The IFC and BLSE organized training covering three detected areas of CG The BLSE will annually monitor CG implementation of all listed companies using scorecard and present results at the BLSE International Conferences

Thank you for your attention! Nebojsa Vukovic Banja Luka Stock Exchange