Insights from the 4th episode of Academia de Guvernanță: Transformation of the Financial Markets and the Challenges for Board Members of the Companies Preparing for Listing
In the fourth edition, Adriana Lobda, Independent Non-Executive Director and Co-founder of Envisia, and Andrei Burz-Pinzaru, Partner at Deloitte Legal Romania | Reff & Associates SCA, talked about the transformation of the financial markets, the challenges for board members of the companies preparing for listing, and how they are supported by specialized education.
The 4th episode of Academia de Guvernanță features a detailed discussion about the evolving role of corporate governance, focusing on how companies prepare for listing on the stock exchange. Andrei Burz-Pînzaru, partner at Deloitte Legal, highlights the critical role that access to capital plays for businesses, especially during times of significant change, such as the ongoing transition towards digitalization and energy transformation. He emphasizes that Romanian entrepreneurial companies have matured and need more visibility and access to capital to compete with multinational corporations. Listing on the stock exchange provides an opportunity to access additional funding through capital markets, which is crucial for growth.
Adriana Lobdă, founding member of Envisia - Boards of Elite, adds that beyond capital access, public listing offers increased visibility for companies, attracting new investors and clients. She explains that companies benefit from greater trust and credibility when they adopt transparency in front of investors and the public, leading to higher standards of conduct and reporting. This level of professionalism boosts investor confidence and loyalty, helping businesses establish long-term relationships with stakeholders.
Lobdă also notes a shift in the role of the board of directors, which has evolved from a monitoring body to a more active partner in strategic decision-making. The power dynamic is transitioning from the executive level to the board, requiring board members to possess not only technical skills but also strong interpersonal abilities to influence and manage relationships with various stakeholders. This includes navigating relationships with intermediaries, lawyers, auditors, and consultants during the listing process.
Burz-Pînzaru further elaborates on the professionalization required for companies transitioning from private ownership to public trading. This process involves clear delineation of roles between founders, executives, and the board, which may not have been necessary before listing. He stresses that the presence of independent board members is essential for ensuring impartial governance and fostering investor trust.
The episode also covers the legal and governance frameworks that companies need to navigate when preparing for an initial public offering (IPO). Companies must familiarize themselves with relevant legislation, including the Romanian governance code, and be prepared to justify any deviations from these guidelines to maintain investor confidence.
Additionally, the role of the board extends beyond listing, as it becomes responsible for fulfilling the company's promises to investors. This requires strategic clarity, the ability to manage risks, and a deep understanding of the company's operational environment. Lobdă stresses that board members must continue to educate themselves on governance best practices and remain adaptive to new challenges.
Finally, Envisia’s role in supporting governance education is highlighted. The organization offers a range of programs designed to prepare board members for the complexities of modern corporate governance, ensuring that they are equipped to lead companies through listing and beyond with confidence and integrity.
The entire discussion is here.
Facebook
Linkedin
BACK TO ARTICLES
