Acknowledging the role of shareholder rights, Mr. Rufat Aslanli, Chairperson, State Committee for Securities of Azerbaijan, informed the media last week that his committee has drafted amendments to the current Azeri Civil Code. He said that the amendments focus on the creation of a legal base for corporate governance in the country:
“After their adoption there will be a need to restructure and ensure the protection of shareholder rights. The amendments specify the authority of shareholder general meetings, supervisory boards and boards of directors for joint stock companies, and provide regulations for conforming to international standards.” (http://news.az/articles/9055)
This news from the Azeri Government is the latest from a series of wide-ranging reforms. Establishing openness to global trade, implementing relatively moderate taxation systems, streamlining business processes, and reforming public sector governance have helped the country move toward a market economy, but there is still far to go. Azerbaijan’s economic freedom score is 58.8, making its economy only the 96th freest in the Heritage Foundation’s 2010 Index of Economic Freedom. From the Index report, on Azerbaijan:
Despite considerable gains in regulatory reform and economic diversification led by the services sectors, substantial challenges remain, particularly in implementing more institutional and systemic reforms. Property rights and freedom from corruption remain weak, and government interference and control hurt overall monetary stability and foreign investment.
Published Date: February 16, 2010