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Private sector and human-resource development in Georgia

Курсовой проект - Экономика

Другие курсовые по предмету Экономика

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The NSCG should be more accountable to GoG for its activities regarding the regulation of Georgian capital market;

The NSCG should develop a program to supervise the activities of SelfRegulatory Organizations (SROs); and

The NSCG has to develop a code of ethics for its staff.

 

Another measure needed to ensure the fairness of the market is:

To enforce adequately the rights of the shareholders, which should be done through the improved court system.

 

In order to improve Georgian court system, it is important to conduct training of judges in the topics concerning the corporate law and operation of the securities market

 

All the above-described measures are designed to achieve in future a sound and liquid capital market in Georgia.

 

Specific recommendations for improving the performance of GSE. More specific recommendations, together with the objectives to be achieved, performance indicators, responsible agencies, duration, etc., are presented in the next page. Objectives given in parenthesis correspond to the Problem Tree given in the above:

RecommendationsObjectives to be AchievedPerformance IndicatorsResponsible AgenciesDurationComment

  • Conduct the 2nd round of the privatization process through GSE;
  • Involve the Investment Funds into the privatization process.
  • Privatization process is improved (Objective 13);
  • Potential of the capital market is increased (Objective 2).
  • The companies included in the privatization list of the 2nd round should be privatized through GSE;
  • A number of (at least 3-5) Investment Funds take part into the privatization process.DSPM
    • NSCG
GSE
  • 1-2 years
  • With the technical assistance of the WB.
  • About 80% of the leading Georgian companies, which currently are not traded at GSE, have to be included into the list of the securities traded at GSE;
  • Government of Georgia (GoG) must introduce some incentives (e.g. simplified tax regime) for those corporations that decide to be listed at GSE.
  • Majority of leading companies are traded at GSE (Objective 4);
  • Potential of the capital market is increased (Objective 2).
  • Majority of leading Georgian companies are listed at GSE;
  • Simplified tax regime is introduced for the corporations traded at GSE.PoG
    • MoF NSCG
GSE
  • 1-2 years
  • With the technical assistance of the WB
  • Prepare and adopt the amendments into the Tax Code of Georgia (TCG);
  • Conduct the tax administration reform.
  • The tax system is simplified (Objective 7);
  • There is an adequate tax code (Objective 6);
  • Incentives for paying bribes/Hiding profits are reduced (Objective 11);
  • The level of corruption is reduced (Objective 10);
  • Transparency of corporate disclosure is increased (Objective 12);
  • Reliability of financial disclosure is increased (Objective 28);
  • Corporate governance practice is improved (Objective 17).
  • Business-friendly tax code is in place;
  • Simplified tax regime for securities and corporations are established;
  • No frequent changes into the tax code are made;
  • Collection of taxes is increased;
  • Companies file more reliable information about their profits;
  • Companies increase the transparency and quality of corporate disclosure. PoG
    • MoF STD
  • 6 months
  • Ongoing
  • With the technical assistance of the WB;
  • In consultations with NSCG.
  • Make amendments into Law on Audit Activity (LAA) to adopt International Standards on Auditing (ISA);
  • Ministry of Finances (MoF), together with Parliamentary Council on Audit Activity (PCAA), requires audit companies to conduct audits in compliance with the International Standards on Auditing (ISA).
  • ISA is adopted into the law (Objective 34);
  • There are adequate auditing standards (Objective 33);
  • Incentives for paying bribes/Hiding profits are reduced (Objective 11);
  • The level of corruption is reduced (Objective 10);
  • Transparency of corporate disclosure is increased (Objective 12);
  • Reliability of financial disclosure is increased (Objective 28);
  • Corporate governance practice is improved (Objective 17).
  • International Standards on Auditing is adopted into law;
  • Audits are conducted in compliance with International Standards on Auditing;
  • Companies file more reliable information about their profits;
  • Companies increase the transparency and quality of corporate disclosure.PoG
    • PCAA
MoF
  • 6 months
  • Ongoing
  • With the technical assistance of the WB;
  • In consultations with NSCG and GSIA.
  • National Securities commission of Georgia (NSCG) requires reporting companies to prepare their financial accounts in compliance with the International Accounting Standards (IAS).
  • IAS is enforced (Objective 9);
  • There are adequate accounting standards (Objective 8);
  • Incentives for paying bribes/Hiding profits are reduced (Objective 11);
  • The level of corruption is reduced (Objective 10);
  • Transparency of corporate disclosure is increased (Objective 12);
  • Reliability of financial disclosure is increased (Objective 28);
  • Corporate governance practice is improved (Objective 17).
  • Reporting companies prepare their financial accounts in compliance with the International Accounting Standards;
  • Companies file more reliable information about their profits;
  • Companies increase the transparency and quality of corporate disclosure.NSCG
    • MoF
  • 3 months
  • Ongoing
  • In consultations with GSIA.
  • National Anti-Corruption Bureau of Georgia (NACB) conducts the assessment of the activities carried out by the tax administrations.
  • The level of corruption is reduced (Objective 10);
  • Transparency of corporate disclosure is increased (Objective 12);
  • Reliability of financial disclosure is increased (Objective 28);
  • Corporate governance practice is improved (Objective 17).
  • Index of corruption is lowered;
  • Companies file more reliable information about their profits;
  • Companies increase the transparency and quality of corporate disclosure.NACB
  • Ongoing
  • With the technical assistance of the WB.
  • Georgian Securities Industry Association (GSIA) should conduct training courses, seminars, workshops, etc. amongst shareholders, company directors and members of supervisory boards on the best practices of corporate governance;
  • NSCG enforces the corporate governance standards.
  • Educational campaign is conducted (Objective 27);
  • Shareholders have sufficient knowledge about their rights (Objective 26);
  • Entrenched culture of abusive self-dealing is lessened (Objective 16);
  • Shareholders' meetings are held regularly (Objective 29);
  • The role of supervisory boards is increased (Objective 35);
  • Corporate governance practice is improved (Objective 17).
  • Majority of company directors and members of supervisory boards, as well as interested shareholders take part in training courses;
  • NSCG conduct quarterly/annual audits of JSCs;
  • Shareholders' meetings are held annually;
  • Supervisory boards' meetings are held on a quarterly basis.NSCG
    • GSIA
  • 1 year
  • Ongoing
  • With the financial and technical assistance of the USAID.
  • Prepare and adopt the regulations for Pension Funds;
  • Prepare and adopt the regulations for Mutual Funds.
  • Legislation for financial intermediaries is adopted (Objective 23);
  • Financial intermediaries are well-developed (Objective 21);
  • Large domestic institutional investors are present at GSE (Objective 20);
  • Larger volumes of capital resources are directed to GSE (Objective 18);
  • There is a competition at GSE (Objective 22);
  • There is a strong market for corporate control (Objective 30).
  • Private Pension Funds start functioning in the country;
  • Mutual Funds start functioning in the country;
  • Large domestic institutional investors take part in trading at GSE;
  • Volume of trades at GSE is increased substantially;
  • Number of participants in trading at GSE is increased;
  • Investment funds take active role in the work of supervisory boards/shareholders meetings.PoG
    • MoF NSCG GSE
  • 1 year
  • With the technical assistance of the WB.
  • Adopt the investment compensation schemes;
  • Strengthen the bankruptcy system;
  • Adopt the rules for takeovers.
  • Adequate legislation for investor protection is adopted (Objective 24);
  • Financial intermediaries are well-developed (Objective 21);
  • Large domestic institutional investors are present at GSE (Objective 20);
  • Larger volumes of capital resources are directed to GSE (Objective 18);
  • There is a competition at GSE (Objective 22);
  • There is a strong market for corporate control (Objective 30).
  • Investment compensation schemes are in place;
  • Regulations for the bankruptcy system are in place;
  • Rules for takeovers are in place;
  • Large domestic institutional investors take part in trading at GSE;
  • Volume of trades at GSE is increased substantially;
  • Number of participants in trading at GSE is increased;
  • Investment funds take active role in the work of supervisory boards/shareholders meetings.MoF
    • NSCG GSE
  • 1 year
  • With the techn