ROLE OF CORPORATE GOVERNANCE IN ENERGY COMPANIES IN THE REGION OF SOUTHEAST EUROPE

Vesić Dobrica (Viši naučni saradnik, Institut za međunarodnu politiku i privredu, Beograd), dobrica@diplomacy.bg.ac.rs

Effective management of companies in the energy sector in the countries of the region is essential for their energy security. Therefore, the role of modern corporate corporate governance as a form of effective management is irreplaceable. In the energy sector in the region, the largest economic entities, especially economic entities that manage energy systems (networks), are public companies. The first element for good corporate governance – the corporatization – is not applied in public enterprises in the energy sector. Today, modern corporate governance is most complex process than it has been ever before. Reform and implementation of modern corporate governance is a good way to achieve efficient and effective goals of strengthening enterprise competitiveness. Corporate governance should ensure strategic guidance of the company, work of the assembly and management, supervision of managers, this also including the company and shareholders. Owners and investors are already aware of the necessity to have responsible and professionally skilled employees for the management of a corporate governance system. Obviously, this new era requires a permanent education programme in all fields, and in fact, it is an imperative now. The process of reform of the legal system is connected with most aspects of corporate governance in public enterprises in the energy sector and since the reform process has not been completed, successful business of those enterprises has not potentially improved. Corporate governance is an integrated system with the complicated goal – to achieve the balance between numerous subjects with different interests. Some of those factors are within a public company (shareholders, members of the board, executives, internal auditors, employees), while others come from capital markets (investment banks, external auditors, investments analysts, Securities and Exchange Commission, etc.). In the light of corporate governance phenomenon, the paper has analysed, the ability of a public company to access capital markets and control the risks.

Keywords: Energy security, corporate governance, public enterprises, risks, capital markets