AKIPRESS.COM - “Kyrgyzstan is a developing country, which was a part of the USSR in the past. Therefore, large companies still have government as a major shareholder. There is a basis to use corporate governance principles in Kyrgyz companies and our company is one of them,” said Sagynbek Dordoev, Chairperson of the Board of the Electric Stations JSC.

The Code of Corporate Governance (CCG)of the Electric Stations JSC was approved during the Annual Shareholders Meeting in 2015. The CCG meets requirements and guidelines of the OECD principles of corporate governance. However, as it is well known, statements of the CCG have recommendatory character. However, the Electric Stations JSC takes the Code of Corporate Governance as one of the main principles in its operating activities, Mr. Dordoev emphasized.

One of the main statements of CCG is that company officials should act reasonably and in good faith for achieving company’s interests. Recently, the Board of Directors of the Electric Stations JSC gave permission for a major transaction of coal procurement. Pursuant to the Electric Station's Charter, if the sum of a transaction is more than 10% and less than 20% of assets of the company, the power to approve the deal goes to the Board. Whereas the subject of the transaction is within the usual operating activities of the company, the Executive Directorate, as an executive body, has the right to approve the deal, according to the Electric Stations Board Chairperson.

“The Board granted the approval on the basis of the proposal of the Executive Directorate. The Board considered that Executive Directorate acts in accordance with the recommendations of the Code of Corporate Governance reasonably and in good faith for achieving company interests. Thus, for the first time the best practices of corporate governance were used within the usual operating activities in our company,” Mr. Dordoev concluded.