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PRESS OF UZBEKISTAN
July 13, 2016
UZBEKISTAN: MODERN STANDARDS OF JOINT-STOCK MANAGEMENT
Advancing forward towards the aims that the Uzbek model of building a market-oriented economy stipulates, the Republic of Uzbekistan doesn’t stop at what has been accomplished. The Republic is striving for the achievement of new heights in all spheres of activity, taking advantage of up-and-coming methods, technologies and progressive international experience. The field of corporate management has also received its portion of attention.

As is generally known, that the efficiency with which enterprises perform, as well as their economic and financial state directly depend on the quality of corporate management. And it is necessary, in this sense, to mention the role of state policy in the development, support and improvement of this sector through the approval of corresponding regulatory and legislative documents.

Let’s take, as a telling example, the Presidential Decree, “On measures to introduce modern methods of corporate management at joint-stock companies”. Signed on April 24th, 2015, the document is designed to create auspicious conditions for the broad attraction of foreign direct investments, to achieve a dramatic increase in the efficiency of activity carried out by joint-stock companies, to ensure their transparency and attractiveness for potential investors, to inculcate advanced methods of corporate management and, last but not least, to strengthen the shareholders’ role in strategic management of their companies. Additionally, the Decree in question identifies the main directions for the field’s further development and approves the Program of measures to radically perfect the country’s corporate management system. In the first place, the document has launched the introduction of international corporate ethics of management in Uzbekistan. In particular, the Presidential Decree sealed measures to carry out the attestation of leaders of joint-stock companies with a share of state-owned assets in their capital, for the purpose of revealing how they can use modern methods and principles of corporate management and marketing, as well as information-communication technologies – in a real corporate management environment.

Summing up the results of 2015 and determining a number of priorities for the current year, the Uzbek president highlighted in his report the outcome of complete stock-taking performance at all joint-stock companies operating in the country these days. As a consequence, it was decided to wind up the activities of 462 joint-stock companies, or 43 per cent of their total number, or to re-organize them in some other organizational-legal forms. What’s more, a new standard structure of a joint-stock company and a classifier of posts and professions, containing 566 new categories, have been worked out and approved.

As a result of the attestation carried out across the country’s joint-stock companies, only 49 per cent of 721 officials have been attested, each third leader was attested conditionally, and 20 per cent, or each fifth leader, was recognized as not corresponding to the posts they filled. It was emphasized that it is necessary to enlist the cooperation of new, progressively-thinking, highly-qualified individuals, who fully meet these high requirements, as well as experienced foreign managers.

While approbating innovative methods of business-process management, the wealth of experience accumulated in other countries of the world is studied and adopted. Thanks to the active participation of the European School of Management and Technologies (Germany), the Research-Educational Center for Corporate Management has been set up in Uzbekistan. Enlisting the services of the teaching staff and professors from the leading educational establishments of Germany and other developed economies, refresher courses are organized in the Republic, which are capable of admitting more than 160 leaders of indigenous joint-stock companies, banks and biggest enterprises, half of whom has already worked on probation at German enterprises.

One should also mention another important document – the Code of Corporate Management approved in February of the current year. It is intended to serve as a collection of recommendations for all joint-stock companies that go over to the international standards of transparent activity and those companies, which are determined to raise the director corps’ responsibility and to reinforce the role of minority shareholders in the enterprise management process.

At this stage it is worth pointing out that alongside these regulatory-legal documents designed to speed up the development and improvement of corporate management, the following documents have been approved: the Law, “On joint-stock companies and the protection of shareholders’ rights” (as amended), and the Resolutions of the Cabinet of Ministers of the Republic of Uzbekistan , “On measures to organize the activity of the Center for Privatization, Demonopolization and Competition Development of the Republic of Uzbekistan” dated June 11th, 2013 and “On organizational measures to ensure the efficient activity of the Research-Educational Center for Corporate Management” dated October 27th 2015.

That said, the measures taken in Uzbekistan to inculcate more efficient forms of management represent the consistent and thought-out steps to further liberalize the market-oriented economy by means of reformation, restructuring and diversification of the national economy. It goes without saying that they will boost the entrepreneurial activity, the attraction of overseas investments and an economic growth of the Republic of Uzbekistan at large.

(Source: «Business partner.uz» newspaper)


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