Ministry of Treasury Principles of supervision -

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Principles of supervision

Pursuant to the Government Administration Branches Act, the minister responsible for Treasury represents the State Treasury in terms of management of Treasury assets, including the exercise of the proprietary and personal rights of Treasury. It exercises ownership supervision over them (through their representatives) as a state body legally responsible for protecting state interests in state-owned enterprises.

Ownership supervision exercised by the Minister comprises all the actions relating to corporate governance, including the monitoring of economic and financial standing of supervised entities and analysis of the effectiveness of their operation, which constitute grounds for the recommendation of appropriate action.

Among various goals of the Ministry's supervision, the most important are: strengthening the position of companies through an increase in the value of the entities being an example of innovation and synergy, which supports the financial needs of the country and further professionalization of management quality and ownership supervision in companies with Treasury shareholding.

The Minister of Treasury being a participant in the market, acts in accordance with the same principles as private entities. Nevertheless, Minister's objectives must take into account not only the interests of shareholders and stockholders, associated with maintaining sustainable asset growth, but must also take into account the economic security of the state, including the area of energy security and safe transmission of energy and fuel. In addition, a good ownership policy, in addition to the items listed above, also includes the activities related to the preparation of the entities for the process of privatization, the removal of barriers to privatization, ensuring transparency of activity of bodies of companies with Treasury shareholding, or elimination of undesirable phenomena, such as violation of law or good practices.

Achieving these objectives is primarily assisted by proper selection of members of supervisory boards (including balanced participation of women and men) and improvement of procedures and good practices relating to the management personnel. Equally significant in this area is the development and implementation of new standards, mechanisms for monitoring and evaluation of the economic and financial activity of companies with Treasury shareholding and initiating cooperation between the entities with Treasury shareholding, in order to exploit the potential of their assets and achieve synergy.

Due to the fact that direct supervision over the activities of companies with Treasury shareholding on behalf of the Minister is exercised by his representatives in the supervisory boards, in the policy of ownership supervision particular attention is paid to issues of professionalization of supervision, on the one hand understood as a constant process of raising qualification and competence of representatives of Treasury acting in the supervisory authorities, on the other hand, though, as the support given to them by the Ministry.

In terms of corporate governance at the Ministry of Treasury the "Principles of ownership supervision over companies with Treasury shareholding" are in use. The abovementioned document comprehensively regulates the rules, procedures and tools for exercising supervision. It is worth to mention that actions taken in the Ministry of Treasury are in full compliance with the directives contained in the "OECD Guidelines on corporate governance of public enterprises."

Selected legal acts forming the basis for proper functioning of statutory bodies of commercial companies and partnerships in the companies with Treasury shareholding

  1. Act of 15 September 2000. Commercial Companies Code (Journal of Laws 2013, item 1030 ut, as amended)
  2. Act of 29 September 1994 on Accounting (Journal of Laws 2013, item 330 ut, as amended)
  3. Act of 8 August 1996 on the Principles of Implementation of Treasury Powers (Journal of Laws 2016, item 154),
  4. Act of 30 August 1996. on commercialization and privatization (Journal of Laws 2016, item 981),
  5. Act of 3 March 2000 on Remuneration of Persons Running Certain Legal Entities. (Journal of Laws 2013 item 254, ut, as amended),
  6. Act of 21 August 1997 on Limited Economic Activity by Persons Performing Public Functions (Journal of Laws 2006, No. 216, item 1584, ut, as amended)
  7. Act of 1 December 1995. on payments from profits earned by single-member companies of the State Treasury (Journal of Laws 1995, No. 154, item 792, as amended)
  8. Act of 22 September 2006 on Transparency of Financial Relations between Public Authorities and Public Enterprises and on the Financial Transparency of Certain Enterprises (Journal of Laws 2006, No. 191, item 1411, as amended)
  9. Ordinance of the Prime Minister of 21 January 2003 on the detailed list of additional benefits that can be granted to persons managing certain legal entities and the procedure thereof (Journal of Laws 2003, No. 14, item 139),
  10. Regulation of the Council of Ministers of 13 February 2007 on the Manner and Procedure for the Organization of a Tender for Sale of Non-Current Assets by a Company Established as a Result of Commercialization (Journal of Laws 2007, No. 27, item 177, as amended)
  11. Council of Ministers of 18 March 2003. on the qualification procedure for the position of a member of the board in certain commercial companies (Journal of Laws 2003, No. 55, item 476, as amended).

Summary of documents containing the obligations imposed by the Minister of Treasury on the management and supervisory boards of companies with Treasury shareholding

  1. The principles of ownership supervision over companies with Treasury shareholding adopted through Ordinance No. 3 of the Minister of Treasury of 28 January 2013, amended by ordinance No. 6 of the Minister of Treasury of 7 March 2013 and ordinance No. 24 of the Minister of Treasury dated 24 June 2013.
    1. guidance of the Ministry of Treasury on the implementation of activities by the Supervisory Board of a sole-shareholder Treasury company and companies with the majority stake held by Treasury,
    2. guidance of the Ministry of Treasury on the implementation of rights and obligations by authorised representative of a shareholder in sole-shareholder Treasury companies,
    3. guidelines for SSTCs and companies with a majority stake held by Treasury preparing their financial statements for the fiscal year,
    4. guidance of the Ministry of Treasury for supervisory board members - representatives of the Treasury, in supervisory boards of companies with minority stake held by Treasury.
  2. Regulation of the Minister of Treasury of 12 March 2001 on the detailed rules and mode of granting annual bonuses to persons managing certain legal entities and specimen application for granting of such bonus (Journal of Laws 2001, No. 22, item 259, as amended)
  3. Order No. 34 of the Minister of State Treasury of 29 September 2008 on details and procedures for the selection of auditors to examine financial statements of companies with State Treasury shareholding as amended by the Ordinance No. 29 of 23 July 2009 and ordinance No. 26 of the Minister of Treasury of 5 July 2016
  4. Ordinance No. 17 of the Minister of Treasury dated 3 August 2004 on the principles and manner of keeping the database information on entities supervised by the Minister of Treasury and the model questionnaires.

Having taken into account the specifics of supervised entities, individual organizational units of MoT can apply to the bodies of companies with Treasury shareholding for cyclical transmission of additional information to allow for more efficient execution of ownership supervision.

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Published by: Piotr Krupa
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Last change: 13.09.2016
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