The new OECD Guidelines on Corporate Governance of State-Owned Enterprises provide
an internationally agreed benchmark to help governments assess and improve the way
they exercise their ownership functions in state-owned enterprises. Good corporate
governance of state-owned enterprises is a key reform priority in many countries.
Improved efficiency and better transparency in the state owned sector will result
in considerable economic gains, especially in countries where state ownership is important.
In addition, creating a level playing field for private and state-owned enterprises
will encourage a sound and competitive business sector. The Guidelines, first adopted
in 2005, provide a set of good practices on the legal and regulatory framework for
state-owned enterprises (SOEs), the professionalisation of the state ownership function
and the corporate governance arrangements of SOEs. This new version of the recommendation
was developed in the light of almost a decade of experiences with its implementation
and a number of thematic and comparative studies, developed on the basis of the earlier
version of the Guidelines, that showed the need for, and supported, their revision,
including in areas such as disclosure and transparency, public-private competition,
board practices and funding and financing of SOE.