How to improve position in Doing Business?
Almaty businessmen were encouraged to participate in the ranking of the survey
Experts of the Department of Entrepreneurship Development of Ministry of National Economy of RK urged the business community of the city to participate more actively in ranking survey of the World Bank “Doing Business”. To do this, you only need to register on the site doingbusiness.gov.kz and answer questions on the provision of services by public bodies.
"This is important not only for the country’s business climate and image, but also for each individual entrepreneur. During communication with foreign partners, you will not need to explain why they should work with you. It will be sufficient to demonstrate the level of the country in the public world ranking, which demonstrates the ease of doing business", - said the expert, who was attracted by the relevant body from Georgia, director of the consulting company “Reformatics” Vakhtang Lezhava.
According to him, 77th place, which Kazakhstan occupies in the rating Doing Business in 2015, is a position lower than the average 68th place for the countries of Central Asia and Europe, and lower then place of the members of the Customs Union (Belarus occupies 57th place, Russia – 62nd). Although there are achievements. Among 189 countries Kazakhstan is on the 25th position in the ranking on protection of minority investors. In addition, among the Central Asian countries Kazakhstan continues to be the best performer.
"According to the data, index of openness in the protection of minority investors in the Republic of Kazakhstan is 7.0; Director Liability Index 6.0; Index of an opportunity to file a lawsuit by a shareholder 7.0; Index of clashes of interests 6.7; Index of rights of shareholders 9.0; Index of development of the management structure 4.5 Index of corporate transparency 6.0; corporate governance index 6.5; Index of protection of minority interests of investors 6.6 ",- comments the data of the rating Vakhtang Lezhava.
To improve Kazakhstan's position in this area, the expert advises to carry out the following reforms:
- In annual reports it is necessary to provide information on major transactions or transactions to which there is an interest. In this case shareholders and the public should be aware of it;
- The court must be able to cancel the transaction in case a plaintiff - shareholder wins a lawsuit; the plaintiff may require the defendant to present documents without specification, the plaintiff may obtain any documents from the defendant and witnesses during the trial;
- Shareholders should be given the right to change the charter of a corporation and other legislative acts of the acquired company by a simple majority of votes;
- Public companies need to create an external / separate audit committee;
- Changes in the classes or series of voting rights / shares must be approved by the owners of shares only;
- Subsidiaries are prohibited to acquire shares of the parent company (the company that owns a controlling stake).
- Public information should be made available on the members of the Board of Directors and management activities in other companies, the ownership share, the total compensation of the managers, mutual equity participation between independent companies.
In March the sub-national rating “Doing Business” was launched in Kazakhstan which will be held in regional centers of the eight regions (Astana, Almaty, Aktobe, Karaganda, Ust-Kamenogorsk, Pavlodar, Kostanay, Shymkent) by such indicators as dealing with construction permits, connection to the electricity system, opening businesses, registration of property. Introduction of sub-national rating “Doing Business” in Kazakhstan is a continuation of the systematic work of the Government on improvement of business climate in the country. In 2015, in the global ranking “Doing Business”, Kazakhstan took 41 place among 189 countries of the world. The World Bank, marked Kazakhstan as the State which carried out the largest number of reforms - 19 reforms in seven of the ten directions.
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