Montenegro is preparing a new Law on Management of State-Owned Enterprises (SOEs) and a strategic State Ownership Policy aimed at depoliticizing and professionalizing the governance of public companies. These documents are in their final stages and are expected to be presented to parliament during the autumn session.
Once adopted, the Ministry of Finance will have centralized oversight of all state-owned enterprises and state assets. This reform aligns with Montenegro’s obligations under the EU Reform Agenda and has been recommended by the World Bank and the International Monetary Fund.
The draft law and policy have been developed in cooperation with relevant ministries and with expert support from the World Bank, following international best practices and OECD corporate governance principles. These principles emphasize fair, efficient, and transparent management with clear accountability of boards and management.
The law will establish clear ownership functions, define rules for company establishment and governance, set responsibilities for management and shareholders, and outline reporting lines. A key innovation is the shift from a decentralized to a more centralized model, where a designated unit within the Ministry of Finance will coordinate ownership activities.
Additionally, the reform will clarify enterprise objectives, maintain a state-owned companies register, set formation criteria, and professionalize governance bodies.
The Ministry of Finance has involved various ministries and state institutions in a working group to contribute to the regulatory framework enhancement, including ministries of finance, economy, tourism, environment, energy, agriculture, transport, education, health, and others, as well as agencies for anti-corruption, competition, and state audit institutions.
