Ulaanbaatar, Mongolia, May 26, 2010
—Two publications by IFC, a member of the World Bank Group, have been translated into Mongolian and will be used as reference tools to help local family businesses and corporate directors improve governance practices.
The first publication,
The Family Business Governance Handbook
, finds that the complexity of many family businesses, including their informality and poor employment policies, can lead to inefficiencies and internal conflicts that threaten their survival.
The handbook recommends ways to help family businesses improve their sustainability by establishing good governance practices. It focuses on corporate governance challenges facing family businesses and proposes structures and practices that can help mitigate these challenges and ensure business viability.
“The handbook is an appropriate tool for course participants, who are board directors and chief executives and financial officers of leading companies in Mongolia,” said Gantumur, Director of MCS Holding Company and participant in a recent IFC-led corporate directors’ training program.
Sanaa Abouzaid, IFC Corporate Governance Officer and author, said, “The handbook is a valuable market reference for family businesses and practitioners alike. The suggested governance structures can be tailored to local requirements and regulations of family businesses in any given country.”
IFC plans to disseminate 3,000 copies of the handbook through the Corporate Governance Development Center and the Mongolian National Chamber of Commerce and Industry. It also will be available online.
The second publication,
The Effective Board Manual
, was designed to assist board members (directors), management, and shareholders of Mongolian companies in establishing an effective board and implementing good governance practices.
The manual provides an overview of the legislative and regulatory requirements related to corporate governance and recommendations of international best practice. It can serve as a reference tool for educational institutions for training the next generation of Mongolian executives, board of directors, investors, and policymakers on sound corporate governance practices.
“
Through this manual, we want to contribute to the growing body of literature on corporate governance in Mongolia,” said Sergii Tryputen, IFC Manager of the Mongolia Corporate Governance Project. We hope that it will be used by directors, board members, and shareholders to improve corporate governance practices in their companies.”
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 capital for private enterprise, 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
.
