Azerbaijan, Baku, Apr. 22 / corr Trend N.Ismayilova /
The International Finance Corporation (IFC, a World Bank group member) Technical Assistance to improve methods of corporate governance of Davachi Broyler enabled the leading poultry company in Azerbaijan to protect better shareholders' rights and attract $14 million from local investor in stock capital, IFC Azerbaijani Corporate Governance Project (ACGP).
Three-year cooperation with the IFC project resulted in adopting adequate measures on protection of rights of minority shareholders in Davachi Broyler. The company adopted new regulations, specifying the role and obligations of managers and members of management, injected a position of corporate secretary and improved internal audit with regard to make operation more reliable.
"We see direct links between the company's profitability and production quality and the methods of corporate management," company managing board chairman Zakir Azimov said.
As a result of these efforts, the company began realizing more frequent and efficient gathering of shareholders. Furthermore, the company applied a dividend policy, accompanied by regular payment of dividends, which is a further prospect for most Azerbaijani companies.
Efficient corporate management is one of key factors, which enabled Davachi to attract a new shareholder such as the Azerbaijan Investment Company (AIC).
"IFC assistance enabled to increase the company's transparency and its operations, making it more attractive client for investing," AIC representative at Davachi Broyler Observation Board Anar Jafarov said.
The IFC corporate governance assists to improve activities of Azerbaijan shareholding companies and banks. Since 2005 the project helped 11 local companies to attract $119.4 million in investment. The project is financed by the Swedish State Economic Secretariat.
IFC provides opportunities to increase poverty ratio and improve living standards. IFC's total investments for 2008 constituted $16.2 billion, testifying for 34-percent rise over the previous year.
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