A one-tier corporate governance system was formally introduced in the Slovenian legal system in 2006. That is a governance system for a joint stock company with a board and executive directors, while the two-tier corporate governance system is carried out through the supervisory and management board.
As of 2006, shareholders may hence choose between a one-tier and two-tier governance system, laying it down in the company’s Articles of Association. Although many codes and gudideliness refer to their sensible use for the work of unitary boards in two-tier system, as is applicable to supervisory boards, SDA developed best practice recommendations for them. This seemed particularly sensible due to a completely new governance system that had not been present in Slovenia before, which is why companies had lacked the experience.
Best practice recommendations:
Research and studies:
- Report - Directors' Note One-Tier versus Two-Tier Board System, 2014