Corporate Governance System Implementation
- Posted by: Admin
- Category: Digest
From the start, OJSC “Guarantee Fund” reiterates its commitment to universally recognized standards for corporate governance system. It is proved by the fact that despite the short period of time of its activity, OJSC “Guarantee Fund” managed to build a corporate governance system in compliance with its all four key principles: Justice, Responsibility, Transparency and Accountability.
Thus, the collegial executive body of OJSC “Guarantee Fund” – the Board takes all decisions collectively, through discussions at the Board meetings, and considers its main task to protect the rights and interests of the Company shareholders. All decisions of the Board are aimed at the absolute accomplishment of tasks specified in the Company’s Charter approved by the Company Shareholders General Meeting. The main objective of the Company is to assist small and medium-sized enterprises by providing guarantees for loans.
Thereby, decisions on providing guarantees are also made by the collegial body – Evaluation Commission, by discussing and voting at the Evaluation Commission meetings. Taking all decisions on a collegial basis is the indicator of shareholders rights protection and maximum fairness. In addition, both collegial bodies of the Company, the Board and Evaluation Commission are elected directly at the Company Shareholders General Meeting.
OJSC “Guarantee Fund”, being a responsible enterprise and created to assist small and medium-sized enterprises, recognizes all the statutory rights and interests of interested parties and works in full with interested persons to create wealth, jobs and ensure sustainability, healthy from financial point of view of enterprises.
Also, from the first days of its activity, OJSC “Guarantee Fund” seeks to ensure maximum transparency of its operations by timely and full disclosure of reliable information on all material issues related to the Company’s activities, including its financial position, performance indicators, ownership structure and management.
In the first months of its activity, except mandatory disclosure of material information in newspapers of national importance and on the website of CJSC “Kyrgyz Stock Exchange”, OJSC “Guarantee Fund” created and launched its own website, where all information on material facts are published, as well as monthly reports and financial condition of the Company.
Finally, the Board of OJSC “Guarantee Fund” provides strategic guidance to the Company and is fully accountable to Shareholders General Meeting. The Regulation on the Board is also approved at Shareholders General Meeting of OJSC “Guarantee Fund”.
Thus, OJSC “Guarantee Fund” has established a clear system of interaction between the company’s management bodies, shareholders and interested parties, which reflects the balance of their interests and is aimed at achieving maximum profitability from the company’s activities in accordance with current legislation and taking into account international standards.
The strategy of OJSC “Guarantee Fund” for the next three years in terms of corporate governance represents further continuous improvement of corporate governance, implementation of advanced ideas concerning corporate governance into the work of the management bodies of OJSC “Guarantee Fund”. To achieve this goal, the Board of OJSC “Guarantee Fund” by decision No. 4/7 of November 30, 2016 approved the Corporate Governance Code.
Not intending to stop there, OJSC “Guarantee Fund”, for further improvement, has planned to revise the Corporate Governance Code in 2017 and submit it to Shareholders General Meeting consideration and approval, that will further enhance the quality and status of corporate governance in OJSC ” Guarantee Fund ” and will become a basis of its successful activity.
According to the new project of the Corporate Governance Code and to fully comply with universally recognized corporate governance standards and ensure protection of minority shareholders’ interests, OJSC “Guarantee Fund” envisages the introduction of the Institute of the Board within three years, if the number of shareholders reaches two or more. That will also become a guarantee for OJSC “Guarantee Fund” further corporate governance standards improvement.