The Corporate Governance Code for Slovakia regulates internal company relations and environmental matters, based on the principles of openness, integrity and accountability.
The principles of the Code should be a guideline for companies without being too restrictive. They should ensure a balance between control and entrepreneurial freedom, encouraging communication and transparency in corporate governance. Principles and recommendations are very flexible, allowing their implementation in every company regardless of size, orientation or culture. The „comply or explain“ approach enables companies to make certain deviations from the principles if they are justified by specific circumstances and accompanied by an adequate explanation.
With a view to achieving maximum user transparency, the Code is divided into individual principles aligned with those of the OECD. Each one has explanatory “notes” and non-binding comments, which are examples of besst practice. Many of the principles are currently incorporated into laws.
The Code is not intended to replace legislation, but to offer a comprehensive view of all the most important principles whose use can help create a balanced, transparent and quality business environment.
The acceptance of certain principles governing the relationship between owners and management is very helpful in all companies, whether private or public. The Code is intended for all companies interested in business transparency and adherence to the principles of fairness, openness and accountability in corporate governance.
Companies that sign up to the Code are required to disclose in their Annual Report Statement on Corporate Governance, based on the principle of “comply or explain” to what extent they comply with the various principles of the Corporate Governance Code. The Association aims toestablish a clear template for a Statement on Compliance with the Corporate Governance Code for Slovakia, based on the provisions of the Code and applicable legislation.