Efficiency of Legal Framework for Corporate Governance in the Republic of Moldova

For any corporation, the stability of external conditions, including legal framework, is an important condition for its successful development. The phenomenon of new corporate management is one of the main factors of the integration processes, both within regional and global geopolitical areas. Over the years, the social, economic and legal framework domestic progress in Moldova has not been evaluated, nor appreciated and the entrepreneurs did not rely on it. Considering the new features of international financial and economic environment, global corporations act for the most viable regulation for protection and opposition against destructive processes. In the last 20 years in Republic of Moldova, one of the state’s main objective regarding the restructuring of the economy was to reform the legislative and organizational framework of corporate management. Our study shows that there is no legal framework to stimulate the creation of genuine corporate structures in the national economy. Currently, the main efforts of the Republic of Moldova are geared towards carrying out various reforms and improving the legal framework. The goal is to allow effective control of the managers’ activity in privatized enterprises (companies on stock). The regulation states the strict delimitation of shareholders’ rights and obligations, the funds investment procedure, the condition to lift the personal responsibility of state representatives in the companies in which the state holds the control package and the control of the managers’ performance in the state-owned enterprises. Unfortunately, despite all the significance of these legislative measures regarding the corporate governance, the real changes that could improve the economic development remain outside the attention of the legislators. The research offers viable solutions for improving the Moldavian regulation in the corporate governance field, including the proposal to adopt a corporate governance code, which can’t be realized by a compliance program alone, but in line with the moral values and the national company culture.