that allows liability to be capped in the contract between the company and the auditor
Principle 13 - (Supervisory) Board responsibilities. The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the (supervisory) board, and the (supervisory) board's accountability to the company and the shareholders.
(Supervisory) Board members should act on a fully informed basis, in good faith, with due diligence and care, and in the best interests of the company and the shareholders.
В В
X
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Absence of detailed guidelines for supervisory boards
1.5.2 Law of Georgia on Securities Market (SML)
The Securities Market Law (SML) regulates the Joint Stock Companies whose shares are traded at Georgian Stock Exchange.
The main principles of the Securities Market Law (SML) are the following:
The purpose of the Law is to develop securities market in Georgia, to protect the investors 'interests on securities market, as well as to establish fair and transparent public trading in securities and free competition;
The Georgian Securities Market is regulated by the National Securities Commission of Georgia (NSCG);
The public offering of securities is an offer to sell securities directly or indirectly on behalf of the issuer to at least 100 persons or to unspecified numbers of persons;
A company, which has a class of Publicly Held Securities, shall be deemed to be a reporting company;
All reporting companies shall prepare and submit to the National Securities Commission of Georgia (NSCG) and publish or distribute to registered owners:
I. Annual reports;
(B) Semi-annual reports; and
(C) Current reports.
II. Every person who is a member of a managing body of a reporting company shall file with the National Securities Commission of Georgia (NSCG) a report regarding the percentage of this company's securities of which he is the beneficial owner;
III. A person, acting independently or together with other persons (a "group"), shall inform the National Securities Commission of Georgia (NSCG) about the substantial acquisition of securities;
IV. Substantial acquisition of securities means beneficial ownership of securities, which provide 5% or more of the voting rights in a reporting company and also when level of beneficial ownership changes by more than 5% from that originally reported;
V. Members of the managing body of a reporting company shall exercise their rights and perform their duties: a) in good faith, b) with the care t...
