On September 17 the Institute of Contemporary Development hosted a roundtable discussion entitled “Corporate Governance in Crisis Conditions”.

General Director of the Bureau of Economic Analysis Andrei Shastitko presented the second issue of the “National Report on the Corporate Governance”, explained the reasons why analysis of certain issues was included in the report and identified five issues to be analyzed in the third issue:

1.Impact of the crisis on the condition and choice of the pattern of the corporate governance (CG) in Russia and abroad: options, trends and vectors
2.Are there any reasons to talk about changes in notions about the best corporate governance practices? Are there any reasons to talk about methods to reflect these changes in Codes of Corporate Governance or through ratings?
3.What are the vital factors, which are influencing and will influence the CG system of companies operating in Russia? Which percentage of changes is driven by the crisis and which – by the system weaknesses? Which factors were only emphasized by the crisis?
4.How does the balance of negotiation grounds change? How does the balance between the key stakeholders’ groups change? What are the changes in the government's role (the role of a guarantor, who ensures observance of rules and a role of the CG participant)?
5.Which changes in the corporate governance system can influence the corporate governance: boosted responsibility of a parent company for obligations of its daughter company? Personal responsibility of managers for violation of the antimonopoly legislation?

According to Executive Director of the National Council of the Corporate Governance Sergei Porshakov, the report primarily aims at giving a general profile of Russia-based corporate governance together with its development trends. “This research aimed at tracing the impact of economic development on the CG,” he said.

The participants gave many comments and suggestions on the subject of the discussion including. They pointed out to underdevelopment of the corporate governance system at corporations with state participation; believed it necessary to review strategies and business models of companies; to review the system of incentives. The main barrier to development of an optimal CG system is the lack of legislation on the state property management and the lack of criteria to rely on while appointing heads of various state-run companies. By 2016 Russia will be the only country not using the IFRS.

All suggestions given by the event participants will be reflected in the third issue of the report. It will be presented to experts in several months.