• Legal Basis: The decree of the President of the Republic of Azerbaijan dated September 5, 2016, provides the foundation for establishing an effective corporate governance system in state-owned enterprises. This decree, within the framework of the “Strategic Roadmaps” and the oversight of state-owned shares, outlines additional measures for improving corporate governance.

• Core Principles:

  1. Clear definition of objectives and targets in state enterprises, aligned with current economic conditions.

  2. Coordinated and transparent application of control and reporting mechanisms.

  3. Performance-based evaluation systems to motivate and enhance operational results.

• State Role in Corporate Governance:

  • Determining and monitoring financial targets, capital structure goals, and resilience levels against risks.

  • Regular monitoring and auditing of performance indicators, ensuring compliance with corporate governance standards.

  • Attracting qualified professionals and designing compensation policies that serve the long- and medium-term interests of the enterprise.

• Expected Outcomes:

  • Improving the competitive environment in state enterprises.

  • Enhancing the quality of services provided.

  • Stimulating public-private cooperation and investment attraction.

  • Ensuring efficient use of state assets.

  • Promoting open government and good governance practices.

• Strategic Roadmaps: Corporate governance standards are being applied and expanded continuously within the framework of Strategic Roadmaps, taking into account international best practices.

Main Message: Implementing corporate governance standards serves as a strategic tool to increase transparency and efficiency in state-owned enterprises, strengthen economic performance, and ensure sustainable long-term development.