Current practices of Kazakhstani corporate governance framework

Abstract

Corporate governance is the one of the most debated issues in legal practice. The topic has been investigated by many law scholars and researchers around the world to improve its aspects. This thesis investigates the existing framework of corporate governance in the Republic of Kazakhstan and suggests ways in which it can be enhanced in the future. The results of this research are important primarily for Kazakhstani businesses positioned to play a significant role in the global economy. To answer the research question, the thesis looks at the framework and current practice of corporate governance in Kazakhstan. It covers vital areas of corporate governance including transparency, accountability, stakeholders, boards of director and several other issues. Current Code of Corporate Governance, approved in 2005 and reviewed in 2007, lacks proper implementation mechanism and seems to be out-dated. Listed companies are required to adopt and disclose their own codes, which shall be shaped upon the stock exchange’s model; however only half of the largest listed companies disclose complying with such obligation. There is also the conceptualisation of the fact that the effectiveness of the corporate organisations relies on how they complement the foreign practice. Although there are many challenges faced in the country as regards corporate governance, the study will offer recommendations for increasing transparency, disclosure and the associated principles in the Kazakhstani stock market and better protection of stakeholders. The thesis will conclude by presenting the Kazakhstani perspective on Board of Directors, disclosure and transparency and their prospects for future development.