Complete the fill-in-the-blank questions below to test your knowledge of the material in chapter 11 of the textbook.
1
The Czech Republic used the privatization method to privatize its state-owned enterprises.
This is a mass privatization model whereby state-owned assets are distributed free of charge to the general public through vouchers traded for ownership shares in state-owned firms.
Page reference: 181/182
2
In Poland, the privatization process used was one whereby management and employees were allowed to buy company assets. A defining feature of the Polish privatization process was that shares had to be included in one of the established in 1995.
NIFs were established to manage shares which were purchased in the various privatized companies in Poland as part of the mass privatization programme.
Page reference: 190
3
The Russian corporate governance code issued in 2001 by the Federal Securities Commission recommended the creation of the post of Secretary which is a new concept for Russia.
The Company Secretary's functions would include preparing for annual general meetings (AGMs) and board meetings; ensuring the appropriate provision of information disclosure and maintenance of corporate records; and to consider shareholders' requests and resolve any infringement of investors' rights.
Page reference: 197
4
In Hungary, the privatization process used was that of selling majority control to an investor.
This type of privatization arguably produced the most successful results with the outside investor often being a foreign investor which led to higher expectations of the companies in which they invested and an improvement in the companies' corporate governance.
Page reference: 199
5
Once state-owned companies are privatized and have shareholders, it is to be expected that these shareholders will push for improved corporate governance including better protection of rights.
The improvement in corporate governance and especially in minority rights protection will help ensure that the interests of the shareholders are better protected.
Page reference: 181
