Corporate Governance Overview

Good corporate governance is important both for companies planning to attract capital from external sources and for the Kyrgyz Republic in general striving to foster investment in the private sector. International experience has shown that a proper system of corporate governance helps not only to overcome the consequences of crises, but also to minimize their impact on companies.

It is evident that many Kyrgyz companies currently underestimate the necessity for adopting good corporate governance principles into their activities. Boards of directors often need to improve their efficiency and management oversight practices, while weak information disclosure and transparency of financial reporting need to be improved.

The IFC Corporate Governance Project was launched in 2008 to assist joint stock companies (JSC) in the Kyrgyz Republic to improve their corporate governance, as well as to strengthen capacity of JSC s for attracting investment. For this purpose, the project staff held seminars on a regular basis to share international best practices in corporate governance with joint stock companies and provide free individual consultations. The project is implementing a pilot program, which supports certain companies in developing and implementing recommendations to improve their corporate governance practices.

As part of the project, the project team works to involve in governmental working groups in legislative and enforcement reform in the area of corporate governance in the Kyrgyz Republic. In order to bring up future generation of business leaders, the project cooperates with education institutes to develop training programs and conduct guest lectures on corporate governance. To raise awareness of the population on issues relating to corporate governance, the project conducts the campaigns to inform the wider public of the latest trends in improving corporate governance practices.

The IFC Central Asia Corporate Governance Project is implemented in partnership with the United Kingdom’s Department for International Development (DFID).

For the attention of banks and companies: IFC is seeking applicants for its Pilot Program!

IFC Central Asia Corporate Governance Project is pleased to announce that it is accepting applications for its Pilot Program.

Companies and banks will be selected based up on investment potential and financial promise, commitment to reform, likelihood for success and other relevant criteria. Selected companies and banks will participate in a comprehensive program and receive:

• An assessment of their corporate governance practices;
• Consultations on improving corporate governance, including structures and relationships between boards management and shareholders;
• Assistance in revising corporate documents to bring them in line with best practices;
• Assistance in preparing transparent and meaningful financial reports.