This report assesses Bulgaria'scorporate governance policy framework for publicly tradedcompanies. It highlights recent improvements to laws andregulation, makes policy recommendations, and providesinvestors with a benchmark against which to measurecorporate governance in Bulgaria. This report updates the2002 Corporate Governance ROSC (CG ROSC). As Bulgariacontinues its dynamic pace of reforms, all key stakeholdersinvolved in the reforms process may wish to focus on thefollowing four reform priorities: first, the FinancialSupervision Commission (FSC) should continue to strictlyenforce existing laws and may wish to focus on how thefollowing three groups "comply or explain" withthe recently issued national code of corporate governance(NCGC): (i) holding companies, in which governance practicesare considered insufficient; (ii) the largest ten issuersthat make-up most of the trading and market capitalization;and (iii) principal issuers on the unofficial market thatare driving much of the market's growth. Second, thetask force that launched the NCGC may wish to eventuallyreview the NCGC to offer more practical guidance on how toimplement good practice. Third, the government andregulators may wish to make minor amendments to the legaland regulatory framework. Fourth and finally, the mostimportant factor to improve corporate governance will be totrain and thus, over time, build a cadre of qualified,experienced, and professional directors who are empowered toensure that the "law on the books" translates intoactual practice.
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