Corporate Governance Country Assessment : Georgia
Since its establishment in 1999, the National Securities Commission of Georgia (NSCG) has been successful in reducing the volume and number of trades taking place outside the stock exchange. It has also taken important steps to increase transparenc...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/03/6732728/georgia-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14505 |
| Summary: | Since its establishment in 1999, the
National Securities Commission of Georgia (NSCG) has been
successful in reducing the volume and number of trades
taking place outside the stock exchange. It has also taken
important steps to increase transparency and disclosure.
However, the assessment highlighted a series of weaknesses
in Georgia's corporate governance regime and practices.
Combined efforts are needed to strengthen shareholders
rights, protect minority shareholders, improve disclosure
and transparency, treat stakeholders fairly, and ensure that
managing directors and supervisory board members abide by
their duties and responsibilities. The reform program should
include a component to strengthen the capacity of the NSCG,
including its budget, human resources, skills, and powers of
intervention. It is recommended that the NSCG establish a
website to make information on publicly traded companies
easily available. Efforts should also be made to strengthen
the enterprise registers which hold important documents such
as company charters. Such information should also be
centralized and available online. It is necessary to
strengthen the accounting and auditing profession to ensure
the development of reliable audited financial reports. It is
recommended to initiate a series of measures to increase the
ownership of Georgia's corporate governance rules and
regulations by issuers. One means of fulfilling this
objective is through the preparation of a voluntary national
code of best practice in corporate governance. Complementing
this approach, an institute of directors should be set up to
train corporate directors and disseminate best practice in
board procedures. |
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