Expert’s opinion Montenegroberza in 2011 As is already common knowledge, Montenegro has been operating a single stock exchange since the beginning of this year. All rights and obligations remain as they existed previously before merging the two Montenegrin stock exchanges. It is important to emphasize that the current database that has been set up in Montenegroberza has emerged as a result of integrating the previous two databases. It is based on data that the stock exchange system used to operate previously, and is in full accordance with the decisions made by the Shareholders’ Assemblies and with an agreement that was made regarding merging the two exchange markets. The historical prices of securities have been achieved by merging the historical prices from both exchanges through the new accounting system. Thus, the current situation is actually a historical representation of this unique new capital market. Brokers and observers, as well as investors, who monitor the situation through vendors in Montenegroberza, are now using data from the new integrated database. The previous databases have been preserved in their integral form and can be accessed at any time by any interested parties, either directly via the internet or through the stock exchange upon request. Any orders that previously existed in either of the systems, and were active before the databases were merged, were preserved with all of their parameters on December 31st. Therefore they have been kept in an integral database and are located with any previous priorities, both time and price, which is in accordance with the Tock Exchange Rules of Procedure.
Montenegroberza has big plans for the year ahead... It aims to raise the level of market liquidity and to implement a new information system project, funded by the government of Luxemburg. This is expected to start soon. The project management has been entrusted to the Luxemburg stock exchange, while the technical implementation will be carried out in cooperation with the Belgrade Stock Exchange. The system has been designed in accordance with world standards and functions in all areas in accordance with MIFID, which is of crucial importance to Montenegro as future member of the European Union. Apart from the implementation of the new system, it is of vital importance for Montenegro to have the Luxemburg stock exchange as its partner. According to many parameters it is rated as being the best in the world. This is just one in a series of projects that have been planned to take place through this cooperation. This year’s plan also envisages the development of a new index in cooperation with the Vienna stock exchange, with which Montenegroberza has already worked successfully over a long period of time. This index will be calculated and published at the Vienna stock exchange and will consequently directly expose companies in the index to monitoring by world investors. In addition to this, it has been planned that at least one Montenegrin company should appear in the index that includes South Eastern European countries, and which will be calculated and published by the world known index provider Dow Jones.
It is also intended to enrich the market with new material, i.e. derivative securities, which will expand the range of products on offer and will refresh the market. Implementation of the project is planned to take place with cooperation from European agencies that are specialized in this segment of the market.The first foreign listing in the market will also be worked on through the IPO process. The Montenegroberza web site will be enriched by increasing the quality of its reporting in terms of data necessary for performing the analyses of investments, particularly in risk management. Some educational activities are also planned in order to enrich knowledge regarding the importance of corporate governance, and to increase the number of companies that accept the Corporate Governance Codex in Montenegro. The corporate governance sector is of vital importance in joint stock companies and it is directly related to the stock exchange market as it directly contributes to the KODEKS protection of shareholders' interests. Code KORPORATIVNOG UPRAVLJANJA of Corporate Governance for Montenegro U CRNOJ GORI was formed in May 2009, as a result of cooperation between the Montenegrin Stock Exchange and International Finance Corporation (IFC). podržan od strane
Testing of a Scorecard methodology in Montenegro In cooperation of Montenegroberza and International Financial Corporation (IFC) within the project "Promotion of Corporate Governance in Montenegro” the testing of a Scorecard methodology was carried out in six companies. Montenegroberza supported and recommended this kind of testing to the listed compaies in Montenegro. The code was accepted by five listed companies, and not all of them tested the actual level of application of standards. Six listed companies agreed to test the actual level of corporate governance: Plantaže JSC, Željeznička infrastruktura JSC, Željeznički prevoz JSC, Montecargo JSC, Pobjeda JSC and Zetatrans JSC. IFC provided consultations for those companies free of charge through inhouse workshops. Testing of scorecard methodology gave some results and highlighted some problems regarding the actual situation of Corporate Governance in Montenegrin companies. Scorecard show that the most problematic areas were: supervision and control, transparency, and Board of Directors (election of members). Prepared by: Dejana Suskavcevic, MSc, Chief Executive Officer
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