Baku, Azerbaijan, April 21, 2009—IFC,
a member of the World Bank Group, has helped Azerbaijan’s Davachi Broyler,
a leader in poultry production, improve corporate governance practices
substantially, enabling the company to better protect its shareholders
and attract $14 million in equity from a local investor.
After collaborating for three years
with the IFC Corporate Governance Project, Davachi Broyler is now one few
companies in Azerbaijan that takes adequate measures to protect minority
shareholders’ rights. The company has adopted a new charter that clarifies
roles and responsibilities of managers and board members, established a
position for a corporate secretary, and improved its internal audit process
to strengthen the reliability of operations.
“We see a direct link between the company’s
profitability, its quality of production, and its corporate governance
practices,” said Zakir Azimov, Chairperson for Davachi’s Management Board.
“We are grateful to IFC for guiding us in perfecting our practices and
As part of its efforts, the company
has initiated more frequent and efficient shareholders meetings. It has
also developed a dividend policy followed by regularly paying dividends,
which is a remote prospect in most Azerbaijani companies.
Superior corporate governance is one
of the key factors that has enabled Davachi to attract a new shareholder,
the Azerbaijan Investment Company. “IFC’s assistance has helped enhance
the company’s transparency and operations, making it a more attractive
client for equity investment,” said Anar Jafarov, the AIC representative
on Davachi’s Supervisory Board.
IFC’s Corporate Governance Project
helps improve practices at Azerbaijani joint-stock companies and banks,
enhancing their operations. Since 2005, the project has facilitated external
investments of $119.4 million attracted by 11 local companies. It is supported
with funds from the government of Switzerland’s State Secretariat for
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.