The methodological norms for the implementation of the Law 111/2016 regarding the professional management in state companies – the former Government Emergency Ordinance 109/2011 – will be ready by the end of July, although the period prescribed by law is four months after the entry into force or June 4th, 2016, says the Minister of Finance Anca Dragu.

“The famous E.O. 109 became law 111. It came into force on June 4th, 2016 and it provides that in 50 days of the entry into force of the methodological norms, all guardianship public authorities, which coordinate state companies, must commence the selection procedure. These methodological norms,in accordance with the law, should be developed in four months after the entry into force of the ordinance, so somewhere in October, but we are at the stage where, by the end of July, the norms will be finalized”, said yesterday the Minister of Finance, in a debate upon the draft regarding the National Anti-Corruption strategy, organized by the Ministry of Justice, according to Agerpres and Bursa.

The minister already formed a working group so that the Ministry of Finance, together with line ministries, are working on such regulations, which are intended to establish a common framework for establishing the criteria for the selection of future managers.

Anca Dragu added that they are working on developing methods for determining the performance indicators financial and non-financial, but also the level of remuneration.

“We want to ensure that the objectives of a shareholder are responsible and in line with this principle,the performance indicators will be defined as such,” said Dragu.

According to the new law, the process of selection and appointment of managers at state companies was clear, given that there were questions that were difficult process, and those gaps in the legislation have been used over time to lock system.

However, the enactment contains a new element, the pending letter of the shareholder, which includes its plans regarding the enterprise, in the medium and long term.

In addition, the law eliminates the exemption from the application of several companies, including the banks, introduces a compulsory selection of managers to RAs with more than 500 employees by an independent expert and reduces the number of directors from five seats to a maximum of three.