Tbilisi, Georgia, July 27, 2009—IFC,
a member of the World Bank Group, has helped the Supreme Court of Georgia
develop and publish recommendations designed to speed the judicial resolution
of company law disputes and make court decisions more transparent.
The joint IFC-Supreme Court document
provides guidance on the application of aspects of the amended Law on Entrepreneurs,
and should help improve corporate governance practices in Georgia. It will
serve as a guideline for judges, arbitrators, lawyers, and businesses and
help foster informed and transparent court decisions. It also should hasten
resolution of company legal disputes, strengthen businesses’ confidence
in the court system, and encourage them to take disputes to court.
“These recommendations will help us
develop a unified practice towards company law disputes,” said Mikheil
Gogishvili, Deputy Chairman of the Supreme Court of Georgia. “As a result,
businesses will benefit from swift resolution of legal matters and will
be able to predict the outcome of their case with reasonable certainty.”
Judges and IFC experts have been working
together to promulgate recommendations on shareholder claims, providing
clarity on such matters as when a shareholder may sue a board member on
behalf of a company’s shareholders and when he or she can file an individual
complaint against the company. Another important recommendation deals with
director liability issues, especially where creditor interests are concerned.
“The recommendations clarify shareholder
rights and duties and the responsibilities of board members,” said Maia
Tevzadze, Project Manager for the IFC Georgia Corporate Governance Project.
“The implementation of these recommendations will contribute to improving
corporate governance practices in Georgia.”
The IFC Georgia Corporate Governance
Project is supported with funds from BP and its oil and gas partners and
the Canadian International Development Agency.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.
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