An analysis of mechanisms of corporate governance in companies with the Treasury shareholding as seen in the example of companies of the energy sector listed on the Warsaw Stock Exchange

Abstract

Corporate governance covers with its scope a set of internal and external mechanisms forming the system of supervision and control in a company. In an economy based on market mechanisms private companies dominate over companies in which the State Treasury has shares. Companies with Treasury shareholding still play a significant role in the economy in Poland. Thus, the paper points to the principles of operation of mechanisms of corporate governance in companies with Treasury shareholding. The purpose of the paper is to analyze mechanisms of corporate governance applied in Energy companies with Treasury shareholding, as well as to establish whether the supervision and control instruments used were convergent. The research was carried out on the basis of companies within the energy sector, which in terms of the number of companies as well as market value was dominated by companies with Treasury shareholding. On the basis of statutes of companies with Treasury shareholding the applied mechanisms of corporate governance are compiled in a table set-up. The conducted research shows that in companies with Treasury shareholding the role of external mechanisms in the company supervision and control system was significantly limited, whereas corporate governance was implemented mainly be means of internal mechanisms. Moreover, the scope of corporate control in companies with Treasury shareholding was much greater than that resulting from the ownership structure.