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IFC Survey Finds Better Corporate Governance in Georgian Companies, Recommends Improvements


In Tbilisi:
Tamar Barbakadze
Phone: +995 32 92 3523
E-mail: TBarbakadze@ifc.org

In Moscow:
Nezhdana Bukova
Phone: +7 495 411 7555
E-mail:
NBukova@ifc.org


Tbilisi, Georgia, September 25, 2009—IFC, a member of the World Bank Group, conducted a survey showing that corporate governance practices in Georgian companies improved considerably over the past four years, and that further progress will improve their transparency and accountability and make them more attractive to investors.

More than 77 percent of companies IFC surveyed demonstrated improved awareness of corporate governance best practices, the report found.  The report said many firms could improve their operations by implementing those practices and identified key areas for firms to address such as strengthening supervisory boards, internal controls, information disclosure, and shareholder rights.

“The survey helps companies not only identify weaknesses, but also provides recommendations on how to achieve better results in terms of corporate governance,” said George Loladze, Supervisory Board Chairman of the Georgian Stock Exchange.  “IFC’s assistance is really very timely and substantial.”

According to the report, conflict of interest and related-party transactions practices need additional attention since only 16 percent of respondents have company by-laws regulating such practices.  An additional 34 percent of respondents noted that supervisory board members do not abstain from voting when they have conflicts of interest.  Overall, however, the results demonstrated solid achievements in the time period covered.

“This second IFC survey of corporate governance practices in Georgian companies shows improvements in key components of corporate governance that have occurred over the last four years,” said Maia Tevzadze, Project Manager for IFC Georgia’s Corporate Governance Project.  “However, there is still a lot to be done, and I hope IFC seminars, workshops, and consultations will help Georgian companies achieve even better results.”

For more about the report, visit www.ifc.org/gcgp.

The IFC Georgia Corporate Governance Project is supported with funds from BP and its oil and gas partners and the Canadian International Development Agency.
       
About IFC
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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

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