Corporate GovernanceKazkommerts Securities adheres and follows high standards of Corporate Governance and Code of Conduct. We also encourage and facilitate implementing Corporate Governance Program with other interested domestic companies in Kazakhstan. What is Corporate Governance?Corporate governance is commonly defined as a system of checks and balances between the board of directors, management and investors to produce an efficiently functioning corporation, ideally geared to produce long-term value. The following principles of Corporate Governance present the basic standards that we advocate to use in daily activities: 1. Shareholders’ rights 2. Responsibilities of the board of independent directors 3. Accounting and auditing 4. Transparency of Ownership and Control 5. Regulatory Environment
1. Shareholders’ rights Corporate governance must protect shareholders’ rights and ensure their equal treatment. 2. Responsibilities of the board of independent directors Corporate governance should ensure strategic management of the company, effective control over its management by the Board and the Board’s accountability before the company and shareholders. 3. Accounting and auditing The use of proper accounting standards and auditing should contribute to sufficient information disclosure and transparency of the company’s essential issues. 4. Transparency of Ownership and Control Corporate governance should ensure the transparency of the share holding and distribution of votes, list of the board members and top managers and structure and management policy. 5. Regulatory Environment Corporate governance should ensure protection of interested persons by the law. Compliance with relevant regulations and laws is fundamental for corporate governance. Why Would You Need Corporate Governance?There are four major benefits for the companies planning to implement corporate governance program: 1. Increasing transparency and trust by domestic and foreign investors. 2. Improving company reputation and public standing. 3. Raising overall competitiveness. 4. Improving operational efficacy and company value.
1. Increasing transparency and trust by domestic and foreign investors Outside investors commonly face risk that their investment profit will evaporate due to the inability control the interests of the managers and shareholders. Corporate governance presents the set of mechanisms through which outside investors can effectively protect themselves against fraudulent asset diversion by the insiders. Thus they have a better faith in your business and you may attract more “patient”, longer-term capital. 2. Improving company reputation and public standing Business ethics and your perception of ecological and social interests of the community affect your reputation and your business performance in the long term. Taking these interests into account via corporate governance will bring you important reputational benefits. 3. Raising overall competitiveness Your competitiveness and success are the result of the joint work and efforts of your staff and other stakeholders. Effective corporate governance helps you ensure you stay ahead of your competition. 4. Improving operational efficacy and company value Corporate governance ensures both effective strategic management and efficient use of the capital by the company.
Corporate Governance ProgramThe program we will implement is designed to facilitate the development of Kazakhstan equity market. The prime candidates for the program are companies listed in the categories of A & B on the Kazakhstan Stock Exchange. In our view, these companies are prepared to accept the standards for disclosure transparency and accountability required by the corporate governance program. At first stage we consider providing consulting and educational seminars for the companies. The seminars will be focused on the key issues of Corporate Governance Program and practical implementation mechanisms. As soon as we have a sufficient number of the companies involved we may go to the next stage by promoting the program to the other corporates and companies and getting them into the KASE listing. We intend to implement the program jointly with one or several co-sponsors. If you have any questions or suggestions please contact Mr. Marat Khaidarov mkhaidarov@kazks.kz
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