Sodelovanje delavcev v upravljalnih organih bank

slovenian

2022

volume 48, issue 5

banking regulation   banking supervision   banks   corporate governance   employee codetermination   shareholders' rights   workers council

Lexpera d. o. o.
(Obvezni izvod spletne publikacije)

Slovenia has recently adopted employee codetermination rules applicable specifically to banks. However, corporate governance of banks significantly differs from that of non-financial firms. This begs the question how codetermination fits into corporate governance of banks. The article analyses this issue primarily through the lens of banking regulation and supervision, focusing on three broader perspectives: risk monitoring; diversity, independence, and qualification of board members; and shareholders' governance rights. The analysis also includes the decisions of the Slovenian Constitutional Court no. U-I-55/16 and no. U-I-196/16 and statutory provisions of the new Banking Act. The article establishes that the real contribution of codetermination to risk monitoring and protection of depositors and stability of financial system is questionable, while it poses a significant peril for effective corporate governance of banks. It concludes that codetermination is unsuitable for corporate governance of banks.

22.06.2023