What will Brussels say? Corporate Code change enshrines state's 'golden veto'

According to an amendment to the Corporate Code, drafted by the Treasury Ministry, the government will protect its dominating position in strategic corporations by the means of the so-called ‘golden veto.’ The amendment is to cover such companies as oil giant PKN Orlen, the National Grid (PSE), Polish Oil and Gas (PGNiG), copper giant KGHM and the leading state-owned financial institutions PZU and PKO BP. Since the European Commission strongly resists special ownership privileges for the state, the regulations cannot go too far if they are not to be challenged and overturned by the European Court of Justice. The proposed regulations give the Treasury Ministry the power to veto management decisions of strategic enterprises, while their managing boards would have at least two representatives from the Treasury who would have the right to block key decisions even if the state had only a minority stake in the firm. (Gazeta Wyborcza, p. 16) T.J.