MAJOR CHANGES IN CORPORATE GOVERNANCE
THE HOLDING HAS APPROVED THE FOLLOWING DOCUMENTS:
1. THE CORPORATE GOVERNANCE CODE OF THE HOLDING IN A NEW EDITION NEW DIRECTIONS IN THE CORPORATE GOVERNANCE CODE OF THE HOLDING:
2. REGULATIONS OFBOARD OF DIRECTORS OF "KAZAGRO" HOLDING" JSC
3. THE CONDITION FOR PAYMENT OF REMUNERATION AND COMPENSATION OF EXPENSES TO INDEPENDENT DIRECTORS OF "KAZAGRO" HOLDING" JSC
4. REGULATIONS OF EXECUTIVE BOARD OF "KAZAGRO" HOLDING" JSC
5. POLICY ON SETTLEMENT OF CORPORATE CONFLICTS AND CONFLICTS OF INTERESTS OF THE HOLDING
6. REGULATIONS OF THE CORPORATE SECRETARY OF "KAZAGRO" HOLDING" JSC
7. REGULATIONS OF THE INTERNAL AUDIT SERVICE OF "KAZAGRO" HOLDING" JSC
DIAGNOSTICS OF CORPORATE GOVERNANCE
As part of compliance with provisions of the Corporate Governance Code, for the first time, corporate governance was diagnosed with involvement of external consultants - «Rating Agency of the Regional Financial Center of Almaty» JSC (hereinafter - RA RFCA).
Based on the results of Corporate Governance Analysis Report, the Holding was assigned a corporate governance rating KZ CG 6 (stable outlook) - 85.01%. This rating, assigned to the Holding for the first time, reflects high level of corporate governance and confirms low risks of main parameters of its evaluation. The rating of corporate governance reflects degree of the company's performance of external requirements to the quality of management and the effectiveness of internal corporate procedures.
In accordance with recommendations of RA RFCA the Holding approved the Action Plan for elimination of recommendations based on results of Corporate Governance Analysis Report of "KazAgro" Holding" JSC for 2017- 2018.
DIAGNOSTICS OF CORPORATE GOVERNANCE IN SUBSIDIARIES
The Holding conducts diagnostics of corporate governance of its subsidiaries and assigns ratings (levels) of corporate governance to the results of the reporting year.
In 2017, diagnostics confirmed high culture of corporate development of the Holding's group of companies on the basis of transparency of activities and high criteria of human potential development. The level of corporate governance in subsidiaries amounted 71.43% (SATISFACTORY). The growth in the overall level of corporate governance amounted 17.5% compared to the previous year. These results will be reflected in the reports on implementation of the Companies' Development Strategy (corporate governance rating).
WITHIN THE FRAMEWORK OF IMPROVEMENT OF THE CORPORATE GOVERNANCE SYSTEM OF THE HOLDING IN 2018, A NUMBER OF INTERNAL REGULATORY DOCUMENTS ARE BEING UPDATED /APPROVED INCLUDING:
- Regulations of evaluation of activities of Board of Directors, committees of Board of Directors and members of Board of Directors of "KazAgro" Holding" JSC. The Regulations will define general directions and recommendations, methods and types of evaluation, evaluation process, role of the Corporate Secretary in self-assessment, role of an independent external consultant, criteria for evaluating activities of Board of Directors, evaluation of the committees of Board of Directors, and procedure for disclosing information on evaluation.
- Rules of disclosure of information on the activities of "KazAgro" Holding" JSC and ensuring the security of commercial and official secrets.
- Codes of corporate management of subsidiary joint-stock companies. Besides, subsidiary joint-stock companies plan to conduct a corporate governance audit involving external consultants and assignment of an independent corporate governance rating.