Assessment system of corporate governance quality to be developed in Kazakhstan
The structure of the Concept for formation of national standards of corporate governance has been discussed at the meeting of the National Council for Corporate Governance of Kazakhstan to the Atameken under the Presidium of the Atameken NCE RK.
During the meeting, the main approaches to the Concept have been presented, involving the disclosure of problem areas, as well as defining the role of all the Committees and members of the National Council for Corporate Governance (NCCG) in the framework of the subsequent work on the development of National corporate governance standards.
“It is necessary to consider the principles of corporate governance G20 / OECD, the Corporate Governance Code of Samruk-Kazyna National Wealth Fund JSC, developed in accordance with the principles of the OECD, the UK Corporate Governance Code, as well as other materials and best corporate governance practices and types of key national standards of corporate governance of Kazakhstan," Elena Bakhmutova, chairman of the Board of the Association of financiers of Kazakhstan, a member of the NCCG, suggested.
The document will be based on the opinions and proposals of the standing NCCG Committees, considering the current law practices and entrepreneurs’ demands.
“The development and approval of the Concept on the formation of national standards is primarily necessary for moving in a single direction and applying a uniform methodology. Since the NCCG currently unites dozens of specialists in corporate governance, each specialist has own unique experience and vision. The concept should take into account the views of each of the four committees. The work of the NCCG is a collegial work; in this regard, the NCCG should be based on the agreed opinion of the relevant committee. Of course, the special opinions of NCCG members should also be considered,” Arman Berdalin, a representative of Sayat Zhalshy Partners Law Firm LLP, said.
In addition, in connection with the active development of the Kazakhstani market and the great need for long-term investments, along with the Concept, a Methodology for assessing the corporate governance level of Kazakhstani companies will be developed.
.JPG)
Since corporate governance rating is the most effective and convenient information for investors about the level of corporate governance of Kazakhstani companies.
The availability of reliable, relevant and convenient information on the level of corporate governance in Kazakhstani companies will create the basis for long-term investments and effective management of investment risks.
The meeting participants noted that the Methodology for assessing the level of corporate governance will become a tool for rating assessment, which allows determining the level and quality of corporate management of Kazakhstani companies, taking into account the special activities of various groups of subjects (quasi-public sector, public companies, financial sector, private sector and family business).
Summing up the meeting, the chairperson of the NCCG Ekaterina Nikitinskaya noted the importance of the Concept of forming national standards as a fundamental document for further work towards the development of corporate governance in the country.
Projects of the developed documents will be discussed at the NCCG meetings, their approval is planned until the end of the year.
Remind that the Council on Competitiveness under the Government of the Republic of Kazakhstan and the Prime Minister of the Republic of Kazakhstan approved the Plan of Measures to improve the indicators of the Global Competitiveness Index of the World Economic Forum for 2018-2019 (hereinafter the Plan of Measures).
One of the measures of the Plan of Measures for the development of corporate governance is the creation of the National Council on Corporate Governance to the Atameken NCE RK.
By the decision of the Presidium of Atameken the National Council on Corporate Governance to the Presidium of Atameken (hereinafter referred to as NCCG) was established to implement this initiative and promote the improvement of corporate governance practices and increase the investment attractiveness of Kazakhstani companies.
By the decision of the Board of the Atameken NCE RK as of December 20, 2018, the members of the NCCG was appointed: chairperson - Y.S. Nikitinskaya, a deputy of the Mazhilis, members: representatives of Samruk-Kazyna NWF, ministries of national economy, finance, Association of financiers, financial institutions, rating agencies, business entities and others.
In February 2019, four permanent committees were created: the Committee on National Corporate Governance Standards, the Committee of Independent Directors, the Committee of Corporate Secretaries, the Assessment and Rating Committee.
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