Baku, Azerbaijan, February 11, 2011—IFC,
a member of the World Bank Group, and Global Corporate Governance Forum
partnered with Azerbaijan’s Ministry of Economic Development in introducing
a newly approved set of corporate governance standards to the national
business community.
The Ministry adopted the Azerbaijani
Corporate Governance Standards in January 2011. A number of public institutions,
banks and private sector representatives such as Azerbaijan Bank Training
Center and the Azerbaijan Corporate Directors and Managers Association
reviewed and provided comments to the Standards. IFC’s Corporate Governance
Forum provided an international panel of experts to help draft and review
the Standards.
“Azerbaijan Corporate Governance Standards
established a framework for good corporate governance practices in the
country,” said Phil Armstrong, Director of the Global Corporate Governance
Forum. “The standards embrace the most significant principles of corporate
governance and also meet local requirements and conditions.”
The new standards address the most evident
corporate governance and confidence problems faced by Azerbaijani companies,
including shareholders’ right abuses, checks and balances between governance
bodies, and disclosures to shareholders. General public implementation
of the standards should be achieved by including relevant provisions in
company charters and internal by-laws, and by adhering to these practices.
The Ministry of Economic Development
established the Corporate Governance Task Force to draft the standards,
and the group included representatives from the Ministry, the Central Bank,
State Committee for Securities, Ministry of Justice, Azerbaijan Investment
Company, and IFC’s Azerbaijan Corporate Governance Project.
“Azerbaijan Corporate Governance Standards
is the integral part of entrepreneurship development measures,” said Anar
Hajizade, Director of the Task Force. “The Standards will facilitate the
effective and transparent performance of joint stock companies. Moreover,
implementing the standards will help prevent corruption-related violations
of the law, and will promote transparent performance by corporate boards
and management.”
Corporate Governance Standards of best
practice are sets of non-binding recommendations aimed at improving and
guiding the governance practices of corporations within country’s specific
legal environment and business context. The Azerbaijani Standards adopt
many principles and recommendations referred to in the OECD Principles
of Corporate Governance and corporate governance codes issued in other
countries.
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
To learn more about SECO’s work in the
South Caucasus, visit www.swisscoop.az
To learn more about the Global Corporate
Governance Forum, visit www.gcgf.org
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