Almaty, Kazakhstan, July 26, 2007 —
The Council of Issuers of Kazakhstan have adopted official
comments to the Model Corporate Governance Code that were drafted recently
by IFC and the Financial Institutions’ Association of Kazakhstan. The
comments contain practical and clear explanations to help joint-stock companies
implement the mechanisms and procedures set out in the code.
The Model Corporate Governance Code,
which the Council of Issuers adopted in 2005, has played an important role
in the development of corporate governance in Kazakhstan. It is helping
set forth principles that take into account the specific properties of
the country’s legislation and business practices.
“The comments are intended to help
joint-stock companies enhance their attractiveness to investors, increase
shareholders’ credibility, and reduce the risk of financial turmoil and
corporate conflicts,” said Serik Akhanov, Chairperson of the Financial
Institutions’ Association of Kazakhstan.
The comments provide recommendations
to increase the efficiency of the governing bodies of joint-stock companies,
explanations of cumulative voting procedures, and details on the important
role of the Corporate Secretary. They also explain the objectives and functions
of internal control and related systems, in accordance with the generally
acknowledged recommendations of international financial organizations,
including the Basel Committee on Banking Supervision and the integrated
framework of the Committee of Sponsoring Organizations of the Treadway
Commission. The comments advise on implementing corporate conflict prevention
and resolution procedures, including the segregation of duties among a
company’s management and units.
"The comments reflect the needs
and realities of the local business community and will help Kazakhstan’s
joint-stock companies improve their corporate governance standards,"
said Adalyat Abdumanapova, IFC Legal Advisor.
The initiative was led by the IFC Central
Asia Corporate Governance Project in partnership with the Corporate Governance
Working Group of the Financial Institutions’ Association of Kazakhstan.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing capital in the international financial
markets, and providing advisory services to businesses and governments.
IFC’s vision is that poor people have the opportunity to escape poverty
and improve their lives. In FY06, IFC committed $8.3 billion, including
syndications, to 284 investments in 66 developing countries. For more information,
please visit www.ifc.org.
About the Council of Issuers
The Council of Issuers is an advisory
body that was established under the Agency of the Republic of Kazakhstan
for Regulation and Supervision of the Financial Market and Financial Organizations.
The council is composed of senior management of major issuers from various
regions in Kazakhstan. Their main activities include:
- Improving and implementing corporate
governance in joint-stock companies
- Assisting the transition to international
financial reporting standards
- Improving terms and conditions of securities
floating and enhancement of their liquidity
- Upgrading the competence of corporate
personnel regarding stock market potential
About the Corporate Governance Working
Group of the Financial Institutions’ Association of Kazakhstan
The Corporate Governance Working Group
was established in June 2004, under the Financial Institutions' Association
of Kazakhstan. The group is composed of representatives from major commercial
banks, pension funds, insurers, large international financial institutions,
public organizations, investment funds, and law and audit firms.