Corporate governance in Russia

Directors of thirty companies listed on the Russian Trading System Stock Exchange were surveyed in order to better appreciate the role and function of boards of directors in corporate governance, placing particular emphasis on their independence and ability to adapt to international standards. The board of directors is widely regarded as a key element for sound corporate governance and 84 per cent of respondents stated that outside directors improve the accountability of management. However, having said that, forty per cent of respondents did not have a clear appreciation of how outside directors function. Reassuringly, 88 per cent of directors believed that Russian corporate governance should be harmonised with international standards.