Bishkek, Kyrgyz Republic, December 28, 2011
—IFC, a member of the World Bank Group, advised the Kyrgyz government on legislative improvements that will protect minority shareholder rights, helping to boost investor confidence and attract investment.
Private companies in the Kyrgyz Republic previously elected board representatives by simple majority, which decreased minority shareholders’ ability to defend their interests. The new amendments to the Kyrgyz law on joint-stock companies, developed with IFC’s advice, introduce mandatory cumulative voting, which allows for a more proportional representation and gives minority shareholders more power to elect board representatives.
“The introduction of mandatory cumulative voting will reassure investors that their voice will be heard through their representatives on corporate boards,” said Roza Aknazarova, member of the Kyrgyz Parliament.
Sergii Tryputen, Project Manager of the IFC Central Asia Corporate Governance Project, said, “Improving the legal environment within which Kyrgyz companies operate is key to ensuring the country’s continued economic growth. The new law will ensure the equitable treatment of all shareholders, which should help firms to attract more investment.”
The IFC Central Asia Corporate Governance Project is being implemented in partnership with the United Kingdom’s Department for International Development, DFID. The project helps local companies and banks strengthen their corporate governance practices to increase their ability to attract financing and manage risks.
The Kyrgyz Republic became a member and shareholder of IFC in 1993. As of November 30, 2011, IFC's committed portfolio in the country stood at $34 million.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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