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.
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.
For more information about BP, visit
For more information about CIDA, visit