Areas of intervention

Provisions

Set clear objectives

SOEs are classified into groups according to the level of commercialization. Performance target (ROE-based) are defined for each group. Largest SOEs are obliged (others encouraged) to develop long-term strategies with clear, ambitious objectives.

Separation of commercial and non-commercial functions

Identification, separation and disclosure of SOEs’ public policy objectives (“special obligations”). Compensation mechanism to cover costs supported for the special obligation.

Separation of the ownership and regulatory function

Establishment of a separate coordinating authority, the Governance Coordination Center (GCC). Criteria for nomination and composition of corporate boards.

Increase the transparency

Aggregated reporting and disclosure established by law. SOEs obliged to prepare and publish yearly and quarterly aggregated reports.