The Review of Corporate Governance in Latvia was prepared as part of the process of
Latvia’s accession to OECD Membership. The report describes the corporate governance
setting for both listed companies and the state-owned sector (SOEs). The Review then
examines the legal and regulatory framework and company practices to assess the degree
to which the recommendations of the G20/OECD Principles of Corporate Governance and
the OECD Guidelines on Corporate Governance of State-Owned Enterprises have been implemented.
The report finds that Latvia's framework for the corporate governance of listed companies
is largely consistent with the Principles. However, the report recommends a series
of measures to further strengthen the corporate governance framework, which could
help to deepen its currently small capital market and attract investment. For SOEs,
the report recognises considerable reforms undertaken during the accession review
process to establish an ownership co-ordination unit and to begin re-establishing
boards of directors (which had been abolished in 2009). The report calls for consolidation
of these reforms and also stresses the importance of clarifying SOE objectives and
strategies, and enhancing disclosure.