Tbilisi, Georgia, July 27, 200
9—IFC, a member of the World Bank Group, has helped the Supreme Court of Georgia develop and publish recommendations designed to speed the judicial resolution of company law disputes and make court decisions more transparent.
The joint IFC-Supreme Court document provides guidance on the application of aspects of the amended Law on Entrepreneurs, and should help improve corporate governance practices in Georgia. It will serve as a guideline for judges, arbitrators, lawyers, and businesses and help foster informed and transparent court decisions. It also should hasten resolution of company legal disputes, strengthen businesses’ confidence in the court system, and encourage them to take disputes to court.
“These recommendations will help us develop a unified practice towards company law disputes,” said Mikheil Gogishvili, Deputy Chairman of the Supreme Court of Georgia. “As a result, businesses will benefit from swift resolution of legal matters and will be able to predict the outcome of their case with reasonable certainty.”
Judges and IFC experts have been working together to promulgate recommendations on shareholder claims, providing clarity on such matters as when a shareholder may sue a board member on behalf of a company’s shareholders and when he or she can file an individual complaint against the company. Another important recommendation deals with director liability issues, especially where creditor interests are concerned.
“The recommendations clarify shareholder rights and duties and the responsibilities of board members,” said Maia Tevzadze, Project Manager for the IFC Georgia Corporate Governance Project. “The implementation of these recommendations will contribute to improving corporate governance practices in Georgia.”
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 $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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