Act No. 143/An/16/7Th, Code Of Good Governance Of Public Companies.

Original Language Title: Loi N° 143/AN/16/7ème L portant Code de la bonne gouvernance des entreprises publiques.

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Act No. 143/AN/16/7th L, Code of Good Governance of Public Companies.


VU The Constitution of 15 September 1992;
VU Constitutional Law No.92/AN/10/6th L of 21 April 2010 revising the Constitution;
VU Act No. 12/AN/98/4 L of 11 March 1998 on the reform of the Sociétés d'État, the Sociétés d'Économie Mixte and the Public Institutions of Industrial and Commercial character;
VU Law No.134/AN/11/6th L of 1 August 2012 adopting the Code of Commerce;
VU Decree No.2014-254/PR/MEFI of 16 September 2014 establishing the Coordinating Council for Governance of Public Enterprises and Institutions (CCGEEP);
VU Decree No. 99-0077/PR/MFEN of 08 June 1999 on the reform of state societies, mixed economy societies and industrial and commercial public institutions;
VU Decree No.2001-0211/PR/PM of 4 November 2001 on administrative public institutions and regulating the transitional period of public enterprises;
VU Decree No.2013-0044/PRE of 31 March 2013 appointing the Prime Minister;
VU Decree No.2013-0045/PRE of 31 March 2013 appointing members of the Government;
VU Decree No.2013-0058/PRE of 14 April 2013 establishing the powers of ministers;
VU Circular No.102/PAN of 27/03/2016 calling for the third public session of the 1st Ordinary Session of 2016;

The Council of Ministers heard at its meeting on 15 March 2016.

Article 1: The purpose of this Act is to define the principles and rules of good governance applicable to public enterprises.

Article 2: The principles of good corporate governance are:
1. separation of powers between the board of directors, directors and shareholders;
2. clarifying the relationship between leaders, directors and their shareholders, the responsibility of directors, directors and their rights and duties;
3. the reality of management controls, whether conducted internally by the board or externally by the auditors;
4. the contractualization between the State and public enterprises;
5. accountability;
6. transparency and publication of information about the public enterprise.

Article 3: The following organizations as defined in section 5 of the Code are required to comply with the principles and rules of good governance:
- the industrial and commercial public establishments;
- State societies;
- mixed societies;
- minority public participation societies;
- Dealerships.

Article 4: The coordination and monitoring of the implementation of this Act is provided by the Coordinating Committee for Governance of Public Establishments and Enterprises, an advisory body created by Decree No. 2014-254/PR/MEFI of 16 September 2016.

Article 5: Within six months of the coming into force of this Act, legislation and regulations governing public enterprises are subject to change for the purpose of complying with the principles and rules of good corporate governance.

Article 6: The financial control of the State exercised over public enterprises, whether priori or later, in accordance with their legal form and the terms and conditions of management are the subject of a particular law within six months of the coming into force of this Act.

Article 7: This Act comes into force upon promulgation.

Done in Djibouti, 05/04/2016

President of the Republic,
Head of Government