«Samruk-Kazyna» JSC has developed a new Corporate Governance Code. The document was created taking into account the latest trends in the world, and aimed at achieving the key objectives of the transformation program: the growth of long-term value and sustainable development, CEO of «Samruk-Kazyna» JSC Umirzak Shukeyev said at the VII meeting with the members of the Board of Directors of «Samruk-Kazyna» JSC group on November 11, 2014 in Astana.
According to him, for the successful implementation of the transformation program, it is important to build a chain of quality of corporate governance throughout the group, necessary to define the roles and responsibilities of everyone. «The core of the transformation program is corporate governance. If there is success in corporate governance than we will have «domino effect» in other areas of the Program,» Mr. Shukeyev noted in his welcoming speech.
The new draft of the Code is applied to the Fund and the organization in which the Fund directly or indirectly owns more than 50% of voting shares (equity) participation. The document contains specifics of the Fund's governance by the Government and Fund's Group that will help investors to more accurately understand the system of corporate governance in the Group and assess risks. Sustainable development and risk management are new sections. «We have to responsibly run the business, create value for our shareholders, present and future generations of Kazakhstan. We are going to implement strategy «Kazakhstan - 2050» through the implementation of the «sustainable development» principle,» Deputy Chairwoman of the Management Board Yelena Bakhmutova told. The project also envisages the improvement of the effectiveness of boards of directors of portfolio companies.
The development of the Code has been started since April of this year with the participation of OECD, Fund's management and companies and pool of the independent directors of the Group. The Code became the first document created within the Transformation program.
In addition, during the meeting it was noted the need to develop transformation «roadmap» in the subsidiaries of the Fund. The Fund, in turn, will provide guidance and practical assistance on the implementation of the program in each company, including through the vertical interaction through the main HR, business transformation and IT directors. «In this case it is critical that the board of directors swing into action, and take on the mission on the revision strategies of companies, together with the management in view of clear priorities identified in the transformation program, as well as in the framework of the powers included in the implementation of the transformation program,» Mr. Shukeyev added.
As is known, on October 6, 2014, the Transformation Program with the participation of President Nursultan Nazarbayev has been launched in Astana. It is a large-scale transformation program of the Fund and the activities of controlled portfolio companies involves transitioning from its current model of work as an administrator of the transferred state assets to an active investor’s role.