To avoid conflict of interest the elected politician or nominated officers should as a member of supervisory board come from a different part of the state departments.*
* For example, if the owner of a company serving public interest is the state and its rights are enforced by the competent ministry, and in turn, by the ministry officer, the member of supervisory board shall not come from the same ministry or possibly not from the government; in such a case, politically nominated member of supervisory board could be member of a legislative body and be a member of different political party than the minister which is a superior to the officer enforcing ownership rights of the state.
If the elected politician or nominated official who is a member of the supervisory board was from a different state department than that which exercises shareholder rights in the enterprise ensuring public service, it would be possible to prevent conflict of interest between the institution shareholder rights and institution exercising the supervisory function.
Sources:
- Fadrný, M., Bouda, P., Czech Republic, the country of gravy trains, Frank Bold, 2014, section 3, p. 13
- Political control and corruption potential of state-owned enterprises, Centre for Applied Economy of the Institute of Economic Studies (Charles University in Prague), 11 September 2013, p. 2
- Vondráček, O., Havrda, M., 21 recipes – Anti-corruption cookbook, Recipe 14: Supervisory boards of companies serving public interest, December 2013
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