According to Fondul Proprietatea (FP.RO), the new corporate governance strategy provides a privileged position to the Romanian state, Electrica’s majority shareholder, and breaches the rights of minority shareholders by allowing the state’s interference in the activity of the four Electrica branches in which Fondul Proprietatea owns minority stakes.
Moreover, the new strategy approved on March 20, 2014, also breaches OECD principles on corporate governance for state companies, and the Bucharest Stock Exchange Corporate Governance Code, among others.
Franklin Templeton calls for a prompt revision of the new strategy, by not involving the majority shareholder in the daily operations of its branches, a clear outlining of the tasks of corporative structures, management responsibility and autonomy and the protection of minority shareholders’ rights, which are essential conditions for a successful IPO.
Electrica is fully owned by the Romanian state, through the Economy Ministry.
According to the agreement with the International Monetary Fund, state will sell a 51% stake in Electrica in June.