1. Sue Rutledge Regional Corporate Governance Coordinator Europe and Central Asia Region World Bank Group Challenges and Opportunities in Convergence of Corporate Governance Practices

2. Market Capitalization

3. Market Cap – Ranked by GDP %

4. Correlation Market Cap vs. CG

5. Global Growth in Derivatives

6. Capital Market Infrastructure Source: Thomas Murray

7. CG ROSC Recommendations Implement EU Directive on Disclosure of Ownership and Control of Companies. Improve disclosure of related party transactions Require traded companies to publish full financial statements. Require all companies to file financial statements with court registry.

8. CG ROSC Recommendations Introduce duty of loyalty for board members. Hold board members liable for failure to disclose potential conflicts of interest. Require codes of ethics for listed companies. Increase independence for board members. Increase board training. Require audit committees for listed companies. Improve oversight of state owned enterprises.

9. CG ROSC Recommendations Donors should support program to strengthen HANFA: –“Twinning” with supervisory agencies from EU member states. –Expand recruiting from private sector. HANFA should improve dialog with market –Increase dialog and consultation with the financial industry and listed companies. –Make greater effort to explain its rulings.

10. THANK YOU!!! Sue Rutledge Regional Corporate Governance Coordinator Europe and Central Asia Region World Bank Group