3. It has to be taken into consideration that implementation of the new standards and principles is a complex and long process which is presently supervised by the Commission of the Stock Exchange. State financing ensures political independence of the institution and enables to attract highly qualified professionals. 4. It is expedient to harmonize laws and regulations because present inconsistency in the Law on Public Companies, the Law on the Securities Market and the Law on Financial Measures in the Republic of Lithuania leave many opportunities for companies to interpret the principles of the Code differently. 5. Although the principles stipulated in the Code are important, research results showed that some principles are ignored, others are implemented formally; therefore the Codes of Corporate Governance do not fully disclose the information which would enhance transparency and accountability of corporate governance.
3. It has to be taken into consideration that implementation of the new standards and principles is a complex and long process which is presently supervised by the Commission of the Stock Exchange. State financing ensures political independence of the institution and enables to attract highly qualified professionals. 4. It is expedient to harmonize laws and regulations because present inconsistency in the Law on Public Companies, the Law on the Securities Market and the Law on Financial Measures in the Republic of Lithuania leave many opportunities for companies to interpret the principles of the Code differently. 5. Although the principles stipulated in the Code are important, research results showed that some principles are ignored, others are implemented formally; therefore the Codes of Corporate Governance do not fully disclose the information which would enhance transparency and accountability of corporate governance.
3. It has to be taken into consideration that implementation of the new standards and principles is a complex and long process which is presently supervised by the Commission of the Stock Exchange. State financing ensures political independence of the institution and enables to attract highly qualified professionals. 4. It is expedient to harmonize laws and regulations because present inconsistency in the Law on Public Companies, the Law on the Securities Market and the Law on Financial Measures in the Republic of Lithuania leave many opportunities for companies to interpret the principles of the Code differently. 5. Although the principles stipulated in the Code are important, research results showed that some principles are ignored, others are implemented formally; therefore the Codes of Corporate Governance do not fully disclose the information which would enhance transparency and accountability of corporate governance.
The Master thesis aims to analyze requirements and their shortcomings for the corporate governance of banks in Lithuania and the European Union, remuneration policy for the banking sector employees and directors as well as the relevant regulation in Lithuania and other European Union Member States. Analysis explores the corporate governance of banks in transition, principal – agent problem, the input of main stakeholders (shareholders, board of directors, supervisors, etc.) and its possible improvement as well as examines risk management, conflicts of interest, effective implementation of possible solutions. The main aim of this master thesis is to fully and comprehensively assess, compare and analyze the regulation of the corporate governance of commercial banks impact to financial stability in Lithuania and the European Union. Therefore, the following tasks were set: to analyze the regulation of corporate governance of banks and its main shortcomings in the European Union; examine the remuneration policy of directors and other banking sector employees; investigate legal instruments of the corporate governance of banks implemented in Lithuania to strengthen the financial stability; make suggestions for improving this regulation. The following methods were used in this analysis: historical, logical, teleological and mainly – systemic taking into account systemic relations between internationally operating banks and comparative – comparing the regulation of the corporate governance of banks in Lithuania and other EU Member States, the governance of banks and non-financial institutions. Main conclusions of this paper show the need for a more effective supervision of the implementation of principles on the good corporate governance and remuneration policy. They should be implemented by principle-based and proportionate way in order to take account of the differences in business models of banks, the nature of their activity, their size, complexity, legal form and different corporate governance systems and arrangements as well as every employee specific contribution, competence, loyalty and seeking for long term value for a bank and general bank financial situation, results. In case of a difficult bank, state or the EU/global situation more cooperation between financial institutions, external auditors and supervisors is essential. It should be organized not regularly but in case of enough serious problems. Furthermore, national legislation have to be improved in time, supervisory institutions have to present analysis of significant problems, banking and its supervision needs to be simplified by publishing corporate governance and remuneration policies, the EU corporate governance code for banks should be created.
The Master thesis aims to analyze requirements and their shortcomings for the corporate governance of banks in Lithuania and the European Union, remuneration policy for the banking sector employees and directors as well as the relevant regulation in Lithuania and other European Union Member States. Analysis explores the corporate governance of banks in transition, principal – agent problem, the input of main stakeholders (shareholders, board of directors, supervisors, etc.) and its possible improvement as well as examines risk management, conflicts of interest, effective implementation of possible solutions. The main aim of this master thesis is to fully and comprehensively assess, compare and analyze the regulation of the corporate governance of commercial banks impact to financial stability in Lithuania and the European Union. Therefore, the following tasks were set: to analyze the regulation of corporate governance of banks and its main shortcomings in the European Union; examine the remuneration policy of directors and other banking sector employees; investigate legal instruments of the corporate governance of banks implemented in Lithuania to strengthen the financial stability; make suggestions for improving this regulation. The following methods were used in this analysis: historical, logical, teleological and mainly – systemic taking into account systemic relations between internationally operating banks and comparative – comparing the regulation of the corporate governance of banks in Lithuania and other EU Member States, the governance of banks and non-financial institutions. Main conclusions of this paper show the need for a more effective supervision of the implementation of principles on the good corporate governance and remuneration policy. They should be implemented by principle-based and proportionate way in order to take account of the differences in business models of banks, the nature of their activity, their size, complexity, legal form and different corporate governance systems and arrangements as well as every employee specific contribution, competence, loyalty and seeking for long term value for a bank and general bank financial situation, results. In case of a difficult bank, state or the EU/global situation more cooperation between financial institutions, external auditors and supervisors is essential. It should be organized not regularly but in case of enough serious problems. Furthermore, national legislation have to be improved in time, supervisory institutions have to present analysis of significant problems, banking and its supervision needs to be simplified by publishing corporate governance and remuneration policies, the EU corporate governance code for banks should be created.
The artificial intelligence (AI) technologies are developing rapidly nowadays so that the companies start benefiting from them by appointing AI as a 'director' of the company. This leads to the significant transformation of social relations. Therefore, this research is aimed at creation of the model implementing AI to the corporate governance and gives the answer to the following question: how the procedure and consequences of the appointing AI as a director of a company should be legally regulated; and what auxiliary changes should be conducted in the legal doctrine and legislation?The study shows that the legal regulation of an AI director has a lot in common with that of an ordinary human director. The differences are based on the absence of 'purely human' attributes (e.g. personal interests, intent, etc.) and on the limited legal capacity of an AI (e.g. AI cannot be held liable). The damages caused by the malfunctions of the soft-or hardware are to be covered by the responsible human within the 'product liability' concept, while the risk of AI's failure to perform the director's duties is born by the company. On this stage, the shift from the adversarial court proceedings to the investigatory proceedings resulting in the insurance indemnification to the company is suggested. Further research is needed to develop new approaches, to broaden and improve the suggested one, which can facilitate diversification of corporate governance and increase its effectiveness.
The artificial intelligence (AI) technologies are developing rapidly nowadays so that the companies start benefiting from them by appointing AI as a 'director' of the company. This leads to the significant transformation of social relations. Therefore, this research is aimed at creation of the model implementing AI to the corporate governance and gives the answer to the following question: how the procedure and consequences of the appointing AI as a director of a company should be legally regulated; and what auxiliary changes should be conducted in the legal doctrine and legislation?The study shows that the legal regulation of an AI director has a lot in common with that of an ordinary human director. The differences are based on the absence of 'purely human' attributes (e.g. personal interests, intent, etc.) and on the limited legal capacity of an AI (e.g. AI cannot be held liable). The damages caused by the malfunctions of the soft-or hardware are to be covered by the responsible human within the 'product liability' concept, while the risk of AI's failure to perform the director's duties is born by the company. On this stage, the shift from the adversarial court proceedings to the investigatory proceedings resulting in the insurance indemnification to the company is suggested. Further research is needed to develop new approaches, to broaden and improve the suggested one, which can facilitate diversification of corporate governance and increase its effectiveness.
Principles and techniques of management and administration are essential not only in the private sector, but in the public enterprises as well. However, nowadays such governmentowned companies often face the critics for lacking effectiveness and having low performance results. The paper presents the analysis of management and administration quality in Lithuania's Government-owned enterprises. The analysis is based upon the Lithuanian Government-owned Business Companies performance analysis, the reports and resolutions of the Government of the Lithuanian Republic, statistical data, the study reports of the Baltic Institute of Corporate Governance in the Baltic countries (Baltic Institute of Corporate Governance) and Lithuanian Public Institution "Organization Evaluation Agency". On the basis of this analysis, recommendations for improving management and administration of the Lithuanian Government-owned enterprises are provided and possibilities for applying management and administration audit are discussed.
Principles and techniques of management and administration are essential not only in the private sector, but in the public enterprises as well. However, nowadays such governmentowned companies often face the critics for lacking effectiveness and having low performance results. The paper presents the analysis of management and administration quality in Lithuania's Government-owned enterprises. The analysis is based upon the Lithuanian Government-owned Business Companies performance analysis, the reports and resolutions of the Government of the Lithuanian Republic, statistical data, the study reports of the Baltic Institute of Corporate Governance in the Baltic countries (Baltic Institute of Corporate Governance) and Lithuanian Public Institution "Organization Evaluation Agency". On the basis of this analysis, recommendations for improving management and administration of the Lithuanian Government-owned enterprises are provided and possibilities for applying management and administration audit are discussed.
Principles and techniques of management and administration are essential not only in the private sector, but in the public enterprises as well. However, nowadays such governmentowned companies often face the critics for lacking effectiveness and having low performance results. The paper presents the analysis of management and administration quality in Lithuania's Government-owned enterprises. The analysis is based upon the Lithuanian Government-owned Business Companies performance analysis, the reports and resolutions of the Government of the Lithuanian Republic, statistical data, the study reports of the Baltic Institute of Corporate Governance in the Baltic countries (Baltic Institute of Corporate Governance) and Lithuanian Public Institution "Organization Evaluation Agency". On the basis of this analysis, recommendations for improving management and administration of the Lithuanian Government-owned enterprises are provided and possibilities for applying management and administration audit are discussed.
Principles and techniques of management and administration are essential not only in the private sector, but in the public enterprises as well. However, nowadays such governmentowned companies often face the critics for lacking effectiveness and having low performance results. The paper presents the analysis of management and administration quality in Lithuania's Government-owned enterprises. The analysis is based upon the Lithuanian Government-owned Business Companies performance analysis, the reports and resolutions of the Government of the Lithuanian Republic, statistical data, the study reports of the Baltic Institute of Corporate Governance in the Baltic countries (Baltic Institute of Corporate Governance) and Lithuanian Public Institution "Organization Evaluation Agency". On the basis of this analysis, recommendations for improving management and administration of the Lithuanian Government-owned enterprises are provided and possibilities for applying management and administration audit are discussed.
The ongoing economic crisis around the world and the recent events in corporate bankruptcy sector (including Enron and Parmalat cases) have shown a clear signal to regulate more efficiently the corporate governance laws and especially the relations between shareholders and the governance body of the company. This thesis paper addresses the regulatory framework issues, which mitigate the conflict of interests between the shareholders and the governance body of publicly traded companies. Five legal instruments are analyzed in order to achieve this objective: market for corporate control and takeovers, information disclosure, director remuneration, structure of governance body and shareholder empowerment. Each legal instrument is analyzed from two legal perspectives, first, the European Union legal framework is described and then analysis concentrates on the implementation of European law in the Republic of Lithuania. Comments and proposals are given to existing implementation problems. The conclusion emphasizes that a systematic use of all the above mentioned legal instruments is required in order to mitigate the costs of separation of ownership and control in publicly traded companies.
The ongoing economic crisis around the world and the recent events in corporate bankruptcy sector (including Enron and Parmalat cases) have shown a clear signal to regulate more efficiently the corporate governance laws and especially the relations between shareholders and the governance body of the company. This thesis paper addresses the regulatory framework issues, which mitigate the conflict of interests between the shareholders and the governance body of publicly traded companies. Five legal instruments are analyzed in order to achieve this objective: market for corporate control and takeovers, information disclosure, director remuneration, structure of governance body and shareholder empowerment. Each legal instrument is analyzed from two legal perspectives, first, the European Union legal framework is described and then analysis concentrates on the implementation of European law in the Republic of Lithuania. Comments and proposals are given to existing implementation problems. The conclusion emphasizes that a systematic use of all the above mentioned legal instruments is required in order to mitigate the costs of separation of ownership and control in publicly traded companies.
The importance of state-owned enterprises in social and economic point of view is increasing all around the world, and their financial returns are rising rapidly every year. In Lithuania, these companies contribute to the state budget growth, they create a significant number of workplaces and provide socially important services that are sufficiently sensitive in our society, such as energy supplies or official registers. With the growing importance of these companies and with state seeking membership in Organisation for Economic Co-operation and Development, important decisions were taken to improve and make more effective the legislation of state-owned enterprises and their coordinating institution. This Master thesis examines the valid aspects of legal regulation of state-owned enterprises governance, covering different legal forms of such companies and their distribution of profits. Also, in different parts of this thesis are analyzed the competition of state-owned enterprises in the market, along with other shareholders rights of the limited liability companies, models of corporate governance functions regarding situation of Lithuanian coordinating institution. There is also analyzed the latest requirements regarding the process of independent and competent board members appointment, transparency and disclosure of information. All of these aspects are compared to other countries practices and the Guidelines on Corporate Governance of State-owned Enterprises, which were published by Organisation for Economic Co-operation and Development. At the end of this thesis are summarized conclusions regarding the legal regulation of the state-owned enterprises management.
The importance of state-owned enterprises in social and economic point of view is increasing all around the world, and their financial returns are rising rapidly every year. In Lithuania, these companies contribute to the state budget growth, they create a significant number of workplaces and provide socially important services that are sufficiently sensitive in our society, such as energy supplies or official registers. With the growing importance of these companies and with state seeking membership in Organisation for Economic Co-operation and Development, important decisions were taken to improve and make more effective the legislation of state-owned enterprises and their coordinating institution. This Master thesis examines the valid aspects of legal regulation of state-owned enterprises governance, covering different legal forms of such companies and their distribution of profits. Also, in different parts of this thesis are analyzed the competition of state-owned enterprises in the market, along with other shareholders rights of the limited liability companies, models of corporate governance functions regarding situation of Lithuanian coordinating institution. There is also analyzed the latest requirements regarding the process of independent and competent board members appointment, transparency and disclosure of information. All of these aspects are compared to other countries practices and the Guidelines on Corporate Governance of State-owned Enterprises, which were published by Organisation for Economic Co-operation and Development. At the end of this thesis are summarized conclusions regarding the legal regulation of the state-owned enterprises management.
