With the increase in the size of the organization, the challenges for its leadership to impose the management system are also increasing, ensuring trouble-free operation in all aspects. Apart from the purely operational effect of good corporate governance, its documentation ensures accountability to all stakeholders. Most often these are shareholders and owners, but also the wider audience, when the enterprise carries out an activity of public interest.
The practice of developed markets, as well as a specific recommendation of the European Commission from 09 April 2014 G., show, that the quality of corporate governance declarations needs to be improved, published by the companies in accordance with Art 20 of Directive 2013/34 / EU and in particular the quality of the explanations, provided by the companies in case of deviation from the recommendations, enshrined in the relevant corporate governance codes.
There is an independent body in Bulgaria, National Commission for Corporate Governance (NKKU), established under the auspices of the Bulgarian Stock Exchange and the Financial Supervision Commission. More information about the activities of this body can be found on its website (www.nkku.bg). The main part of the work of the NCCU is focused on the creation and maintenance ofNational Code of Corporate Governance, which is in line with the good practices of developed stock markets and is in line with the requirements of the European regulatory framework.
Public companies in the country have already declared compliance with the implementation of the National Code of Corporate Governance. Regardless of the volume and specifics of the activity, the code provides a good basis for all other enterprises, including small and medium, in developing guidelines for good governance. Our experience shows, that documenting and complying with such leads to a more efficient organization of the business as a whole. In this regard, we expect the topic to become more and more relevant for the Bulgarian economic environment.