Aligning with corporate governance standards
27 January, 2011
Aligning with corporate governance standards

Georgian companies can employ a guide book on corporate governance standards worked out by International Finance Corporation (IFC) within the frames of Georgia Corporate Governance project that was completed this January. The manual is a summary of recommendations and consultation the IFC project has been providing Georgian companies for four years based on the best international practice. 
IFC, a member of the World Bank Group, announced about successful completion of its Georgia Corporate Governance project and summarized the results of its

program to help Georgian companies improve their corporate governance practices. Following the principles of responsibility, accountability, and transparency enables firms to become more profitable and attract investment.
The questioned project was a follow up of the similar program launched in 2003 on purpose to introduce the corporate governance concept and principles in Georgian reality. Both aimed at establishing corporate governance principles at Georgian joint stock companies through training seminars, private consultations and pilot programs.
The IFC project helped improve the legal environment regulating corporate governance issues, and facilitated adoption of a voluntary Corporate Governance Code by the Association of Banks of Georgia (ABG). IFC delivered seminars and workshops on legal and financial aspects of corporate governance, individual consultations, and a specially designed Pilot Program for selected companies and banks. Twenty-one companies and banks improved 50 policies/procedures, and all of them reported improved performance as a result of making corporate governance improvements.
IFC recently published the Georgia Corporate Governance Manual, which provides a comprehensive overview of Georgia’s regulatory requirements related to corporate governance. The publication will help Georgian companies improve corporate governance standards and practices beyond completion of the IFC project. The project presented the manual to the key counterparts during the project closing ceremony on January 21, 2011. From 2006 to January 2011, IFC Georgia Corporate Governance Project was run in partnership with BP and its oil and gas co-venturers and the Canadian International Development Agency.
“Good corporate governance is one of the key preconditions for attracting investors, domestic as well as international,” Maia Tevzadze, Project Manager for IFC Georgia Corporate Governance Project, told Georgian Journal.  “Through the IFC project activities we helped Georgian companies become more attractive for investors. Our publications, especially Georgia Corporate Governance Manual, will serve as practical guidance for raising corporate governance standards in the future.”
According to Tevzadze, researches of companies and banks they conducted in 2004 and 2008 showed that companies progressed pretty well from the point of view of adopting corporate governance standards in practice. The practice turned out much more successful for banks that could attract more than USD 300 million thanks to improved corporate governance principles.
Companies operating in non-financial sector appear less successful from the point of view of attracting investments for they have much limited access to financial resources compared to banks. But Tevzadze believes that they will go on profit in a long-run as far as corporate governance principles are not calculated on short-term prospects.
Georgian companies showed a big interest in adoption of international standards of financial accounting [as it is key issue to attract investors] and in internal control skills. 
According to Zurab Gvasalia, President of ABG, importance of corporate governance principles became obvious after financial crisis that made clear that companies with well-developed corporate governance skills escaped the crisis with the least losses. On the other hand companies got convinced that a full package of principles must be established.
“It raises transparency of a company and thus gains the trust of society that is the key assets of all companies actually,” Gvasalia told GJ. “And the Corporate Governance Code we worked out and signed is a sample of this.  Standards we put in this code are much higher than the law and banks understood that if you want to enjoy the effect of corporate governance you have to adopt all of its principles without exception, otherwise it loses effect.”
Pursuant to this understanding Georgian banks work on adoption of the institute of corporate secretary  they lacked in practice up to day.

Print
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30