In order to update the corporate governance recommendations in accordance with modern requirements, in the period from 2018 to 2020, an Advisory Board for the development of a new Corporate Governance Code was established under the auspices of the Ministry of Justice Republic of Latvia. The authors of the Code are Daiga Auziņa­Melalksne, Jūlija Bistrova, Liene Dubava, Gatis Flinters, Zane Eglīte­Fogele, Andris Grafs, Baiba Lielkalne, Maija Orbidāne, Baiba Strupiša, Ilze Tīmane and Māris Vainovskis. During the development, the recommendations included in the Code have been discussed and debated with management board and supervisory board members of the private and public sector companies, supervisory authorities, representatives of the nongovernmental sectors and academic environment.

At the end of 2020, the Corporate Governance Advisory Board completed its work on the development of the Corporate Governance Code (Code). The Code consists of 17 principles that promote the long-term growth of the company's value, its effective management and transparency.

These principles are grouped into 10 sections and cover both conceptual issues of corporate governance, such as corporate strategy, internal culture and ethics, and more detailed issues of board election and composition. The principles contained in the Code summarize international best practices in corporate governance and can be applied to any company that wants to improve operational efficiency and achieve long-term value growth. It is especially important to ensure that the principles contained in the Code are observed by public interest entities (financial institutions, listed companies), public corporations and derivatives corporations, as well as other companies with a broad shareholder base or systemic influence in the Latvian economy.

The new code pays particular attention to the role of the board in developing and implementing corporate strategy, the role of independent board members, the diversity of board composition, internal control and risk management, the company's internal culture and ethical standards, and conflict of interest management.

To view the Code click HERE