Legal AlertThe Corporate Governance Monitoring Report Closely Involving BIST 100 and BIST 30 Companies is Published.

23 September 2020

The first monitoring report (“Monitoring Report”),  was prepared as the first publication by the Capital Markets Board (“CMB”) and the European Bank for Reconstruction and Development (“EBRD”) within the corporate governance reporting framework which entered into force within the scope of the project titled “Support to the Capital Markets Board in the Implementation of Corporate Governance Principles” (“Project”) and initiated in cooperation with the CMB and the EBRD.

The Monitoring Report has been prepared in order to encourage compliance with the Corporate Governance Principles included in the annex of the Corporate Governance Communiqué numbered II-17.1, to give an idea about the aim of ensuring the widespread implementation of the principles and to constitute an implementation guide for companies in this regard.

The Monitoring Report reveals the level of compliance of BIST 100 and BIST 30 companies with the non-mandatory corporate governance principles and evaluates their comply or explain disclosures.

In this context, it has been put forward in the Report that the average level of compliance of BIST 100 companies with the non-mandatory principles is 80% and the average level of compliance of BIST 30 companies is 82.5% and the board of directors is open to improvement with respect to the number of independent members, the percentage of female members, and the evaluation of competence, the term of office and performance of its members.