Corporate Governance in Romania: The Board Structure an Overview of Betplus Companies

Corporate governance is a relatively new concept that emerged after the middle of the last century in response to financial scandals and bankruptcies of large companies in the 1990s and has become increasingly important, mainly in the present-day context of globalization and the growth of international competition, of the continuous changes of the market, of the economic and political environment, of the rapidity of the technological changes, which make that the maintenance of the balance and success of companies cannot be achieved without paying increasing attention to the way management and control is performed. The concept of corporate governance is based on internal and external mechanisms, designed to align the interests of all those involved in the company’s activity, so as to increase the value of the company and to achieve the highest possible performance, and to increase investors’ confidence through transparency, accountability and honesty. The Board of Directors is one of the most important corporate governance mechanisms, its main role is to elect and monitor the activity of managers, to ensure that they run the company in accordance with the interests of those who elected them (the shareholders), while pursuing the company’s strategy and objectives. This study presents an analysis of the Board of Directors of the companies that are part of BETPlus index of BSE, in terms of compliance with the provisions of Bucharest Stock Exchange Corporate Governance Code, but also a brief review of the main corporate regulations in Romania, highlighting the requirements related to the size and composition of the boards, requirements that the listed companies must comply with.