Bhutan : State Owned Enterprises and Corporate Governance Report

Abstract

This paper reviews state-owned
Enterprises (SOE) corporate governance in Bhutan, outlines
SOE compensation and personnel management policies, and
recommends policy options to improve state enterprise
performance and facilitate greater autonomy in SOE pay and
personal management. Following the OECD Guidelines on the
Corporate Governance of State Owned Enterprises, the report
defines an SOE as any enterprise with state ownership, a
distinct legal form (separate from the public
administration) and having commercial sales and revenues.
This definition includes both wholly owned enterprises and
those with minority state ownership. Recommendations are
provided, and include strengthening the ownership function
by creating a specialized division in the Ministry of
Finance to represent the government as a shareholder;
regularly monitor and assess SOE performance at the
aggregate level; encourage active ownership and the
systematic exercising of state ownership right; strengthen
board responsibilities, qualifications, and independence;
make transparent and explicit subsidies to various
categories of consumers through SOEs, and measure the
efficiency of their delivery to consumers; focus and
streamline Royal Audit Authority (RAA) audits.

Citation

“World Bank. 2007.

Bhutan : State Owned Enterprises and Corporate Governance Report

. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/12722 License: CC BY 3.0 IGO.”

Collection(s)

This item appears in the following Collection(s)

  • Corporate Governance Assessment