The Ministry of Finance's new regulation has taken effect, introducing greater transparency in the operations of strategic companies, including the disclosure of executive and director compensation.
The Ministry of Finance's Regulation on Disclosure and Reporting, published in the Official Gazette last week, has come into force, marking the beginning of a digital overhaul of state-owned enterprises. This is a major reform implemented by the state, aimed at standardizing rules for compiling certain data to ensure comparability and easier oversight across all companies.
The new rules apply to all 39 strategic companies, which will have uniform frameworks for a significantly larger amount of content and its publication deadlines. Within seven days, all strategically significant companies will be required to publish on their websites a list of corporate governance documents and employment rules.
A major innovation will certainly be the publication of annual reports on the compensation of management board members, executive directors, supervisory board members, and management board members. This obligation will only take effect after the adoption of a secondary regulation governing this important area of the new state-owned enterprise management system, which is expected in the autumn.
Before Christmas this year, the public should have access to each company's publication plan for the following year, from the dates of supervisory board meetings and general assemblies to the dates of report publication and dividend and profit payments. In case of deviations from the plan, the company must notify the change at least three days in advance. Under the new rules, this will be mandatory by December 20 each year, and by that date, companies will also publish their annual and medium-term business plans.
The publication of quarterly business reports will become mandatory starting with the first quarter of 2027. Deadlines for publication are April 30 for the first quarter, July 31 for the second, and October 31 for the third, while the fourth report will be published together with the annual unaudited report by April 30 of the following year. Audited reports for the previous year will be published by June 30, and consolidated reports by September 30.
Alongside quarterly and annual reports, information on all donations and sponsorships, including recipients, grounds, and amounts, will also be published. In addition to the reports, companies will provide data on contracts for public services, which must include the subject of the contract, contracted unit price, subsidy amounts, the method of financing public services, and the revenue the company earned from public operations in the previous year.
Information on loans, guarantees, and similar state aid received by the company from the state will also be disclosed. The regulation includes a standardized and unified template for the public presentation of abbreviated annual and medium-term business plans, including numerous financial data and targets, and also provides fields for reports on their achievement.
It also mandates the publication of segment reports that clearly separate revenues and expenses related to public services from those of market operations.
