Tashkent, Uzbekistan, April 25
By Demir Azizov- Trend:
President of Uzbekistan Islam Karimov adopted a decree defining the main directions of developing the corporate management system in the country.
A program of measures on radical improvement of the corporate governance system was approved by the decree on "Measures for the introduction of modern methods of corporate management in joint stock companies", published on April 25.
The program envisages more efficient use of production, investment, logistical, financial and human resources in the joint stock company on the basis of international experience.
The decree also determines the priority establishment of the joint stock company with foreign capital, creating favorable conditions for broad drawing of foreign investments in the joint stock company.
The joint stock company's management structure must be radically reorganized. The outdated, obsolete units and positions must be eliminated. The new units and positions, corresponding to the modern international standards and requirements of the market economy, must be introduced.
Enhancing the role of shareholders, including minority shareholders, in the strategic management of the joint stock company, ensuring the control for effective activity of the administrative personnel have been indicated as the main areas of improving the effectiveness of the joint stock company's activity.
Moreover, the decree envisages attracting highly qualified foreign managers for leading positions in the joint stock company. The document establishes the procedure. According to this procedure, a decision on the appointment of the head of the executive body of the joint stock company is taken as a rule on a competitive basis which from July 1, 2015. Foreign managers can participate there.
The decree approved the standard organizational structure of the joint-stock companies, which was worked out on the basis of profound study of the system of organizing management in the leading foreign companies.
The organizational structures of joint-stock companies should be brought in compliance with the new standard structure by taking into account their industrial specifications within two months. In the same period, certification of the management staff of joint-stock companies with state share will be held to determine the level of their knowledge about the modern methods and principles of the corporate management.
Following the certification, measures will be taken to attract new, modern-minded, highly qualified managers meeting the modern requirements, as well as foreign managers to the vacated positions.
Regardless the state share in the authorized capitals, using the word "state" in the names of the joint-stock companies and other business associations will be banned from July 1 in accordance with the decree.
Moreover, all joint-stock companies should start publishing annual financial statements and hold external audit in accordance with the international audit standards and the international standards for financial accounting within 2015-2018.
Under the president's decree, the joint-stock companies, attracting foreign managers are offered a number of tax benefits.