Recently, the issue of introducing an effective corporate governance system in joint-stock companies has become increasingly important. For most investors, and especially foreign ones, corporate governance issues are one of the main factors influencing the decision-making on large-scale investments in Uzbek economy and the existence of problematic issues in corporate governance largely hampered the growth of capitalization of joint-stock companies in Uzbekistan. Investors are not worried much about the mechanisms by which management manages the current activities of its enterprises, but are really interested in principles, norms and procedures, on the basis of which relationships between owners of companies and managers are built.
A survey of 100 largest companies in emerging markets showed that in each of the countries, companies with better corporate governance had an EVA of 8% higher than the average of companies from this country.
American companies with better corporate governance have faster growth in sales and are more profitable, compared to companies with poor corporate governance.
Analysis of the methodology for assessing the corporate governance of various international organizations, such as the World Bank, OECD, EBRD, KPMG, PwC, GAMMA methodology, Standard & Poor’s rating agency, shows that corporate governance is a key element in ensuring the efficiency of companies’ activities, and improving corporate governance is considered as an integral part in the implementation of the will of the management bodies and the joint stock company itself.
So, an effective system of corporate governance not only increases the market value of the company, but also makes it more attractive to investors, which in turn increases its competitiveness in financial markets.
Corporate governance assessment in joint-stock companies became an indicator of compliance with the best business practices in various companies of the world. This assessment gives the opportunity to analyse not only the effectiveness of corporate governance but also to understand the dynamics of these processes. Serious use of this tool helps to unlock the potential and to significantly improve the efficiency of the executive bodies of joint-stock companies.
In order to use a systematic approach in assessing the degree of implementation and subsequent increase on this basis of efficiency of corporate governance in joint- stock companies of the Republic of Uzbekistan, CGC in cooperation with the Ministry of Economy and the State Committee of the Republic of Uzbekistan developed the methodology for assessment of corporate governance system in joint-stock companies and methodology of diagnostics of the corporate governance system in joint-stock companies of the Republic of Uzbekistan.
During development of the evaluation criteria international standards and requirements, new trends and the best international practices of corporate governance, as well as the requirements of the Code of Corporate Governance of Uzbekistan were taken into account..