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.

Other Stories
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
GEL Exchange Rate
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
July 2019
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 31