ment identified a number of the shortcomings in the corporate governance practice existing in Georgia. Namely, according to the study: (i) There are uncertainties in knowing if shareholders are sharing in company's profits; (ii) It is not uncommon practice of failing to hold the required shareholders 'meetings; (iii) Markets for corporate control are limited; (iv) Court system has not yet made any decisions on the cases concerning corporate disputes; (v) Minor role is played by supervisory boards in the strategic guidance of companies; (Vi) There is a less than complete disclosure by most reporting companies, particularly of financial and operating results; (vii) There are weak auditing practices; В
More detailed results of the assessment are summarised in Table 1.2.1.1 below:
Table 1.2.1.1. Georgia: Assessment of the Implementation of the OECD Principles
of Corporate Governance
OECD Principles of Corporate Governance
O [8]
LO [9]
MNO [10]
NO [11]
NA [12]
Comments
Principle 1 - Basic shareholder rights. The corporate governance framework should protect shareholders 'rights. Basic shareholder rights include the right to: (I) secure methods of ownership registration; (ii) convey or transfer shares; (Iii) obtain relevant information on the corporation on a timely and regular basis; (iv) participate and vote in general shareholder meetings; (v) elect members of the (supervisory) board; and (vi) share in the profits of the corporation.
В В
X
В В
Difficult to access the records of the court enterprise registers and uncertainties in knowing if shareholders are sharing in company's profits
Principle 2 - Fundamental corporate changes. Shareholders have the right to participate in, and to be sufficiently informed on, decisions concerning fundamental corporate changes, such as: (i) amendments to the governing documents of the company; (ii) the authorization of additional shares; and (iii) extraordinary transactions that in effect result in the sale of the company.
