Management of Azerbaijan's State Oil Company being improved - Decree
BAKU, Azerbaijan, Jan. 23
Azerbaijani President Ilham Aliyev signed a decree on measures to improve the management of the State Oil Company of Azerbaijan (SOCAR) on January 23, Trend reports.
According to the decree, in order to raise efficiency in the activities of the State Oil Company within the framework of the requirements of best practice and modern management, as well as to improve management, taking into account modern corporate governance standards the following measures are to be taken:
- Creating the Supervisory Board of SOCAR to carry out general management and control over the activities of SOCAR;
- Staffing the Supervisory Board with seven members, including the chairman appointed and dismissed by the President of Azerbaijan.
Besides, within the framework of exercising the powers of the general meeting of SOCAR, the President of Azerbaijan is entrusted with the authority to reorganize and liquidate SOCAR, as well as to appoint and dismiss members of the Supervisory Board and executive body of SOCAR.
Upon agreement with the President of Azerbaijan, the following powers are vested in the Azerbaijan Investment Holding:
- Approval of the charter and structure of SOCAR, determination of the size of the authorized capital;
- Approval of annual reports, financial statements of SOCAR, distribution of profits and losses;
- Approval of SOCAR's dividend policy;
- Making a decision on the issue of SOCAR securities;
- Making a decision to conclude a transaction (transaction of special significance) for an amount exceeding 25 percent of the value of SOCAR's net assets, and a transaction based on the conclusion of an independent auditor with a relevant person, the value of which is 5 percent or more of the value of SOCAR's assets.