engleski

The impact of privatization investment funds on corporate governance in Croatia

The focus of this paper is on critical role of privatization investment funds in corporate governance in Croatian companies, which were part of their portfolio. Corporate governance system needs to provide a balance between different parts involved in companies ; the administration (managers), shareholders (owners) and other interest groups (employees, local community, bankers) but also to provide an efficient monitoring system through the members of Board of Directors. Croatia, like many other transitional countries privatized most of its former state owned companies through the coupon privatization as a method which produced a specific type of companies’ ownership structures. The coupon privatization method produced rather dispersed ownership structures and the role of privatization investment funds as institutional investors were to canalize and to concentrate the ownership. The purpose of this paper is to show a relationship between management companies that manage privatization investment funds and governance system in privatized former state owned companies. The main emphasize will be on the key factors which influence election members of Board of Directors in privatized companies and related role members of Board of Directors with management companies or some companies which are connected with a specific privatization investment fund.

privatization investment funds; corporate governance; Board of Directors

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