The shareholder of the joint stock company Public Investment Development Agency (hereinafter referred to as “VIPA”) is the Ministry of Finance of the Republic of Lithuania. VIPA finds it important to ensure effective and transparent operation. To this end, reorganisation of management was launched which helped restructure and enhance corporate management of the company.
The Company’s management includes relationship between the Company’s management and supervision bodies, the Company’s shareholders and holders of interests. Such way of management affects the Company’s performance and its capability of attracting capital required for the Company’s economic growth since the quality of the Company’s management determines the investors and shareholders’ trust in the Company. Appropriate management of the Company is the key factor in attracting both local and foreign investments, in maintaining the investors’ trust in the Company and in increasing the Company’s competitiveness.
When drawing up the new management structure / model of VIPA, consideration was taken of the most advanced international and national practice, reference was made to the recommendations of the Organisation for Economic Co-operation and Development (OECD) to Lithuania on the improvement of management of the state-owned companies, and account was taken of the suggested guidelines for the state-owned companies. The VIPA corporate management model was implemented on the basis of the corporate management guidelines approved by the Ministry of Finance of the Republic of Lithuania on 7 June 2013. This model of management encompasses all key operational elements: starting from periodic planning of operation, defining operational indicators pursued, carrying out activities and finishing with the assessment of the achieved operational results. The model also helps ensure that the process is ceaseless and the results of the end of one cycle become the data for the beginning of the next cycle. It is a necessary prerequisite for the implementation of the principles of continuous improvement.
Given the aforementioned and seeking to make VIPA the National Authority of Incentive Funding (hereinafter referred to as the “NSFI”) and to meet the requirements set for the NSFI so as not to be included in the public sector:
- structure of VIPA’s collegial bodies was reviewed and approved, it meets the requirements for the composition of collegial bodies of companies set in the Law on Companies and the Description of Procedure for the Implementation of Property and Non-property Rights of the State in the State Owned Enterprises approved by Resolution No. 665 of the Government of the Republic of Lithuania of 6 June 2012.
VIPA aims at making collegial bodies operate effectively and be independent from political influence, at having competent members who have no conflicts of interest because transparent operation contributes to the creation of favourable business climate which is necessary so as to attract as many investors to Lithuania as possible. The inclusion of independent members in the Company’s management contributes to the increase in transparency. A company’s transparency is enhanced by the fact that all selections of collegial bodies are publicly announced, and this fact helps attract more competences to the Board and the Supervisory Board.
VIPA’s collegial bodies are composed of transparently selected competent professionals and some of them are independent members. The latest version of the Articles of Association approved by Order No. 1K-059 of the Minister of Finance of the Republic of Lithuania “On the Approval of Articles of Association of Joint Stock Company Public Investment Development Agency” of 8 February 2013 (Order No. 1K-14 of 17 January 2018) explicitly defines the areas of responsibility of collegial bodies. The chosen type of the Company’s management ensures the balance of interests, the allotment of functions among the bodies of the enterprise, and enables the Company to attract investments and thus ensure the Company’s success.