Corporate Governance Code is a set of rules and principles, the observance of which offers investors and interested persons a sufficient opportunity for supervision over the company’s governance, and helps guarantee investors and shareholders equal treatment. Corporate Governance Code was jointly developed by the Tallinn Stock Exchange and the Estonian Financial Supervision Authority and is designed, above all, for companies whose shares have been admitted to trading on a regulated market in Estonia.

Since the provisions of Corporate Governance Code are recommendations by nature, the company need not observe all of them. However, where the company does not comply, it has to provide an explanation in its corporate governance report which is a separate part of its annual report. The “comply or explain” approach has been mandatory for listed companies since 1 January 2006.