Bishkek, Kyrgyz Republic, December 28,
2011—IFC, a member of the World Bank Group, advised the Kyrgyz government
on legislative improvements that will protect minority shareholder rights,
helping to boost investor confidence and attract investment.
Private companies in the Kyrgyz Republic
previously elected board representatives by simple majority, which decreased
minority shareholders’ ability to defend their interests. The new amendments
to the Kyrgyz law on joint-stock companies, developed with IFC’s advice,
introduce mandatory cumulative voting, which allows for a more proportional
representation and gives minority shareholders more power to elect board
“The introduction of mandatory cumulative
voting will reassure investors that their voice will be heard through their
representatives on corporate boards,” said Roza Aknazarova, member of
the Kyrgyz Parliament.
Sergii Tryputen, Project Manager of
the IFC Central Asia Corporate Governance Project, said, “Improving the
legal environment within which Kyrgyz companies operate is key to ensuring
the country’s continued economic growth. The new law will ensure the equitable
treatment of all shareholders, which should help firms to attract more
The IFC Central Asia Corporate Governance
Project is being implemented in partnership with the United Kingdom’s
Department for International Development, DFID. The project helps local
companies and banks strengthen their corporate governance practices to
increase their ability to attract financing and manage risks.
The Kyrgyz Republic became a member
and shareholder of IFC in 1993. As of November 30, 2011, IFC's committed
portfolio in the country stood at $34 million.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org
To learn more about DFID, visit www.dfid.gov.uk.