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    • Corporate governance

    • In the economic literature, corporate governance represents the system by which the companies are lead and controlled. In this way, corporate governance is defined as a set of mechanisms through which the company operates when the ownership is separated from the management. The main objective of corporate governance is maximizing long-term value of shares by improving decision-making process and the performance of joint stock companies through well-structuring the relationship between investors, management and other stakeholders (creditors, customers, employees). This implies the creation of rules and incentives that best serve the interests of the company, while at the same time they respect the obligations of all other participants. The main motive of improving corporate governance is self-interest since well-regulated corporate governance contributes significantly to the improvement of financial performance of the company and its reputation in the outside world. Good corporate governance enables the reduction of information asymmetries and decrease of the average cost of financing the company. Preconditions are created for strengthening profitability and competitive ability at the company level, at the level of the national economy as a whole and, consequently, for the growth of GDP. Effective corporate governance enables the creation of efficient companies, and a multitude of efficient companies makes the national economy rich and prosperous, and a society - a society of prosperity. Consequently, one could rightfully say that corporate governance is one of the basic elements in improving economic efficiency and market economy.

      In 2007 Nova banka adopted its standards of corporate governance, by which it established in more detail the mechanisms of functioning and protection of interests in the mutual relations of various stakeholders in the joint stock company. Stakeholders in Nova banka are current and potential shareholders, landers, creditors, employees, Management Board, Supervisory Board and the state.

      By respecting standards of the Bank management, the competitive ability of the company is improved, more favorable conditions for investment activity are achieved, and more efficient functioning of financial markets is enabled. Standards of the Bank management are determined on the basis of the following principles of corporate governance:

      1. Providing a basis for effective implementation of principles of corporate governance
      2. Rights of shareholders and key ownership functions
      3. Equal treatment of shareholders
      4. The role of stakeholders - interest holders in the corporate governance
      5. Disclosure and transparency of information
      6. Roles and responsibilities of the Management Board.
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