NATIONAL CORPORATE GOVERNANCE SYSTEM IS PROPOSED TO ESTABLISH IN KAZAKHSTAN
The initiative was announced at a meeting in the NPP RK "Atameken", chaired by the Deputy Chairman of the Board of the National Chamber Rustam Zhursunov, with the participation of deputies of the Majilis of the Parliament, representatives of Samruk-Kazyna JSC, the National Bank, the Association of Financiers and all interested parties.
The question is not raised by chance. Corporate governance is the international practice of companies, which is a system of interaction between management bodies, shareholders and stakeholders. Such a system allows reflecting the balance of interests of all business participants and is aimed at maximizing profits. In Kazakhstan, it is successfully implemented in Samruk-Kazyna JSC, but in most companies (including the private and quasi-state sector), it is actually not developed.
"Why does it happen? Practice shows that the business simply does not know all the benefits of corporate governance. Domestic experts in this field do not have the proper qualifications. And government agencies are not keenly interested in facilitating the implementation of the system and coordinating the process,” - Rustam Zhursunov, Deputy Chairman of the Board of the NCE RK “Atameken”, highlights.
Together, all this contributed to the deterioration of Kazakhstan’s positions on several indicators in the Global Competitiveness Index of the World Economic Forum. In particular, positions on such indicators as “Corporate ethics” and “Professionalism of managers” decreased (by 8 and 9 points, respectively).
In order to rectify the situation, the National Chamber developed and proposed to the Government a systematic and integrated approach.
“We propose to create a unified institutional framework for the development of corporate governance, both in the public and in the private sector. Moreover, we propose the establishment of a National Council on Corporate Governance, approve the basic, national standards that will be applied across the country. Such approaches have proven themselves in international practice,” - Rustam Zhursunov said.
The meeting participants considered the issues of the composition and position of the National Council, as well as a list of guidelines on corporate governance, necessary for adoption in Kazakhstan.
“Considering that this is a new practice for most companies, we need motivational measures that will help implementing the system. In particular, I propose to provide benefits in the form of indulgences in government procurement. Also, it is necessary to make proposals to the National Bank of the Republic of Kazakhstan to revise the system of prudential standards,” - the Deputy of the Majilis of the Parliament of the Republic of Kazakhstan Elena Nikitinskaya said.
Participants of the event noted the importance of using and improving the institute of corporate governance, and increasing the interest of the private sector in its implementation.
It was also decided to hold an annual Republican Corporate Governance Forum, which will raise the activities of the relevant National Council to a higher quality level.
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