Azerbaijan, Baku / Trend corr S. Babayeva / The Azerbaijan State Securities Committee commented on a lack of proper transparency in the activities of the joint-stock companies (JSC). The norms of corporate governing in the JSCs are also not on the proper level of fulfilment, the Chairman of the State Committee, Gunduz Mammadov, said at a press conference on 14 September.
"Annual reports are not developed, not submitted, and not publicized in media," he said.
During the last eight months, the State Committee collected annual reports on financial and economic activity from approximately 300 JSCs, Mammadov reported. "That is a very low index taking into consideration there are 2,000 JSCs operating in Azerbaijan," he said.
According to Mammadov, there are also problems in payment of dividends to stockholders. Only 130-150 of JSCs regularly pay dividends to their stockholders. The rest do not pay dividends due to lack of profits or reinvesting of profits.
These shortcomings can reduce the interest in the securities market, Mammadov noted.