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IFC to discuss corporate governance code for Azerbaijani companies in January

Business Materials 19 December 2008 15:54 (UTC +04:00)

Azerbaijan, Baku, Dec. 19 / Trend , U.Ismayilova/ "The International Finance Corporation (IFC) intends to finalize development of the Corporate Governance Code within the Azerbaijani Corporate Governance Project (ACGP) in 2009," project manager Caroline Bright said on Friday at IFC seminar Corporate Governance in the Insurance Sector.

According to Bright, "the importance of the project will be discussed at an international conference in Baku on Jan. 14 to be held by IFC".

The conference to bring together specialists from many countries will discuss the relevance of the Code for Azerbaijan and the companies operating in the country, added Bright.

After the international conference a special working group will be created to develop a corporate governance code. Then the document will be submitted to the Government.

The Code, as in many countries around the world, will not be in the form of a law, and it will be applied on a voluntary basis. "Each company will be able to follow its terms and, if refused to abide by the rules of the Code, it will have to explain the reason," said Bright.

The project manager believes that the Code will improve the structure of Azerbaijani companies. Such codes exist in almost all countries around the world and this attracts investors very much.

ACGP is being implemented by IFC with financial support from the Swiss State Secretariat for Economic Relations Seco.

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