The corporate governance system of KAZAKH INVEST is a set of processes that ensure the management and control over the activities of KAZAKH INVEST, as well as a system of relationships between the Management Board, the Board of Directors, the Sole Shareholder and stakeholders, based on respect for the rights and fair treatment of each of them. The competences of the bodies and the procedure for making decisions are clearly defined and enshrined in the Charter.
KAZAKH INVEST considers corporate governance as a key tool for improving performance, ensuring transparency and accountability, strengthening its reputation and reducing costs. KAZAKH INVEST strives to contribute to the rule of law in the Republic of Kazakhstan through the implementation of good corporate governance practices.
In accordance with the best corporate governance practices, KAZAKH INVEST annually prepares a report on compliance/non-compliance with the principles and provisions of the Corporate Governance Code.
Principles of Corporate Governance
The activities of KAZAKH INVEST are based on compliance with the fundamental principles and provisions of the Corporate Governance Code:
1. The principle of separation of powers
2. The principle of protecting the rights and interests of the Sole Shareholder;
3. The principle of effective management of KAZAKH INVEST by the Board of Directors and the Management Board;
4. The principle of sustainable development
5. The principle of risk management, internal control and audit;
6. The principle of regulation of corporate conflicts and conflicts of interest;
7. Principles of transparency and objectivity in the disclosure of information about the activities of KAZAKH INVEST.
KAZAKH INVEST is constantly improving corporate governance in order to increase the efficiency of each employee. All documents accepted by KAZAKH INVEST are mandatory for all employees, regardless of their positions.
Governing bodies of KAZAKH INVEST
The supreme body is the Sole Shareholder represented by the Ministry of Foreign Affairs of the Republic of Kazakhstan;
Management body - Board of Directors;
The executive body is the Board;
The body exercising control over the financial and economic activities of KAZAKH INVEST, assessing internal control - the Internal Audit Service.
The competence of the Sole Shareholder, the Board of Directors and the Management Board of KAZAKH INVEST are defined in the Law of the Republic of Kazakhstan "On Joint Stock Companies", the Law of the Republic of Kazakhstan "On State Property", the Charter of KAZAKH INVEST and in internal documents.
Sole Shareholder
The sole shareholder elects members of the Board of Directors on the basis of clear and transparent procedures, business reputation, and professional experience of candidates. When re-electing individual members of the Board of Directors or its entire composition for a new term, their contributions to the efficiency of the Board of Directors are taken into account.
The Sole Shareholder of KAZAKH INVEST is the Government of the Republic of Kazakhstan represented by the Ministry of Foreign Affairs of the Republic of Kazakhstan, which makes decisions on issues referred by the legislation and the Charter of KAZAKH INVEST to the competence of the Sole Shareholder.
In accordance with the Decree of the President of the Republic of Kazakhstan dated December 26, 2018 No. 806 “On measures to further improve the public administration system of the Republic of Kazakhstan”, the rights to own and use a block of shares in KAZAKH INVEST were transferred to the Ministry of Foreign Affairs of the Republic of Kazakhstan.
Board of Directors of KAZAKH INVEST
The Board of Directors is a collegial management body and carries out general management of activities, with the exception of resolving issues referred by the legislative acts of the Republic of Kazakhstan and the Charter of KAZAKH INVEST to the competence of the Sole Shareholder and the Management Board.
The activities of the Board of Directors are based on the principles of reasonableness, efficiency, activity, conscientiousness, honesty and responsibility.
In accordance with paragraph 3 of Article 181 of the Law of the Republic of Kazakhstan "On State Property", the boards of directors of national managing holdings include representatives of the authorized body for state planning, the authorized body for state property, the authorized body of the relevant industry and other state bodies by decision of the Government of the Republic of Kazakhstan .
In accordance with clause 64 of the Charter of KAZAKH INVEST, the Board of Directors consists of the Chairman and members elected by the Sole Shareholder.
The composition of the Board of Directors is formed from among the members of the Government of the Republic of Kazakhstan, the Chairman of the Management Board, independent directors and other persons.
The number of members of the Board of Directors must be at least five people. At least thirty percent of the Board of Directors must be independent directors.
Board of KAZAKH INVEST
The Management Board is an executive body accountable to the Board of Directors and manages current activities. The Management Board is responsible for the development and implementation of the development plan and the action plan and decisions adopted by the Board of Directors and the Sole Shareholder. Makes decisions on activities that are not within the competence of other bodies and officials of KAZAKH INVEST.
The Board ensures:
1) carrying out activities in accordance with the norms of the legislation of the Republic of Kazakhstan, the Charter and internal regulatory documents of KAZAKH INVEST, decisions of the Sole Shareholder, the Board of Directors;
2) proper risk management and internal control;
3) allocation of resources for the implementation of decisions of the Sole Shareholder, the Board of Directors;
4) labor safety of employees;
5) creation of an atmosphere of interest and loyalty of employees, development of corporate culture.
The Chairman and members of the Management Board are evaluated by the Board of Directors. The main evaluation criterion is the achievement of key performance indicators.
