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
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To learn more about the Global Corporate Governance Forum, visit
www.gcgf.org
