THE MISSIONS OF THE GOVERNMENT SHAREHOLDING AGENCY (APE)
I. A dedicated shareholder
The various functions performed by the Government in its relations with state-owned companies are potentially conflicting: it has to act as a shareholder, a customer or a regulator. In an open and competitive environment, it is necessary to make a clear distinction between these main aspects and better identify the shareholder activity.
The APE has been created to address the shareholder role within the legal framework and in accordance with the Government guidelines. Its main task, as defined by the September 9th decree, is to optimize the value of Government assets.
The APE has been fully operational since early 2004.
The scope of APE activity is strictly defined. It covers a wide range of companies and assets from minority stakes to state controlled large entities. A total of 70 entities and holdings belong to the portfolio and define the full book keeping scope for state-owned companies.
The APE coordinates with other ministries to determine the global strategy and guidance for the state as a shareholder.
II. An effective shareholder
The APE is the main adviser of the Economy Ministry on all matters concerning the Government's position as a shareholder. This responsibility covers the main aspects of a company's lifecycle: strategy, investments and financing, mergers and acquisitions, equity transactions.
The APE is active within the company's board and maintains a coherent position of the Government representatives: It is the Government representative at shareholder meetings. Based on the Minister's guidelines the APE can propose the allocation of financial resources. Through the departments of General Audit & Finance and General Economic & Financial controllership it has elements of control over its companies.
III. A transparent shareholder
The APE has to be transparent when dealing with other Ministries, the Parliament and citizens. This transparency is materialized by the presentation of combined accounts of the main entities controlled by the Government regardless of their legal structure as long as they are in the scope of the APE.
IV. An efficient shareholder
Improving the global effectiveness of the Government as a shareholder in an ever more complex economic and financial environment means require dedicated resources.
The APE has sixty employees, with two third of managerial staff. The APE is a matrix organization: three expert sections (audit-accounting, finance and legal) bring their support to the entities in charge of the relations with the companies grouped by industry sectors (Transport, Energy, Services-Media and Military).
Each APE employee must sign an ethical code. This charter focus on information confidentiality, prevention of insider trading and conflicts of interest.
To be successful companies need a professional shareholder they can deal with. The APE is a privileged and regular partner of company directors focusing on three goals: maintaining with the companies transparent and smooth relations based on a true strategic dialog, improving their governance, developping the Government's capacity to act as an effective shareholder able to anticipate and making adequate proposals.
As a result of a close work with several blue chip company CEOs, the APE has defined general principles for the functioning of companies main bodies (board, general assembly)and for the relationships between companies and the APE. These principles are aimed at defining high level standards for the Government representatives together with other shareholders at the Board meetings of state-owned companies.They do not substitue for the legal and regulatory arrangements already in place for Government companies under the July 26th 1983 law for the democratization of the public sector.
These principles are implemented on a case by case basis, taking into account the status of the company, its capital structure when necessary and the specific legal and regulatory arrangements.
APE representatives share a common culture for efficient execution of their responsibilities in the governance of Government companies. They also maintain coherent positions of the Government representatives during company Board meetings.
The APE has therefore launched a wide scale training program for its representatives focusing on better governance of Government companies with common legal, financial and accounting bases.
