Our advisory work in Armenia began in February 1999 with a comprehensive Corporate Governance Project, financed by the Government of the Netherlands and IFC Trust Funds. The project was completed in 2002.
The objective of this project was to improve the investment environment by promoting modern corporate governance practices and legislation. The project:
- trained managers, directors and shareholders of local companies, government officials and the professional community on corporate governance issues;
- developed a corporate governance manual and distributed it to all open joint stock companies;
- advised the government on necessary improvements to corporate governance legislation;
- helped establish links between Armenian firms and foreign enterprises.
The Foreign Investment Advisory Service (FIAS), a joint World Bank-IFC facility, reviewed Armenia's investment legislation and helped the government to implement its revised investment law. In 2000-2001, FIAS interviewed members of the business community and the government to assess the investment climate and the barriers to the establishment and operation of investment projects.
IFC's advisory services have also included:
- review of the legal and regulatory framework for financial leasing and preparation of a draft leasing law;
- review of the market for housing finance;
- study on the feasibility of financial leasing;
- study on the feasibility of venture capital funds;
- preparation of a draft law on joint stock companies and a review of draft legislation on limited liability companies.
COMPLETED PROJECTS
Armenia Corporate Governance Project
Funded by the Agency of the Dutch Ministry of Economic Affairs (Senter) through IFC’s Technical Assistance Trust Funds Program
To improve the corporate governance practices of Armenian companies and make them more attractive to potential investors, the project trained and advised local firms on internationally-accepted corporate governance practices and compliance with local legislation. In addition, to improve the country’s overall investment climate, the project worked with the national government to draft amendments to relevant business legislation, such as the Law on Joint Stock Companies and the Civil Code.
The project’s achievements include:
- Developed specialized seminars on various aspects of corporate governance and trained managers of over 70% of Armenian joint stock companies.
- Advised 43 companies on specific corporate governance issues such as drafting charters and by-laws, conducting company reorganizations, and holding general shareholders’ meetings.
- Produced 26 specialized publications in Armenian and English for Armenian companies and foreign investors, including a practical corporate governance manual.
- Developed a corporate governance course for the School of Law at Yerevan State University. The course will also be implemented in other educational institutions.
- Facilitated links between Armenian and foreign companies through various roundtables and conferences. At the most recent investment conference, which took place in New York in May 2001, Armenian companies had the opportunity to present their business plans, meet with potential investors, and discuss specific project proposals.
