1. 3rd Eurasian Corporate Governance Roundtable
Shareholder Rights, Equitable Treatment and the Role of the State
April 17-18, 2002
hosted by
Securities and Stock Market State Commission of Ukraine
State Property Fund of Ukraine
PFTS
with the support of
The Government of Japan
The Global
Corporate Governance Forum

2. The World Bank’s Georgian Corporate Governance Report on the Observance of Standards and Codes (ROSC)
Warren Gorlick
The World Bank Group
Private Sector Advisory Services – Corporate Governance Unit
April 17-18, 2002

3. Reports on Standards and Codes (ROSCs)
Financial stability rests on standards
WB and IMF make “ROSC” assessments
WB leads in three of the 11 key standards:
accounting and auditing
insolvency and creditor rights
corporate governance

4. Corporate Governance (CG) ROSCs
Countries benchmarked in CG against OECD Principles
CG template incorporates each OECD Principle
Focus is on country, not company analysis
ROSC exercises support diagnosis, dialogue and action

5. CG ROSC activity to date
CG ROSCs have been completed for 11 countries
ROSCs for nine countries are already on the World Bank public web site
ROSCs are published at upon receipt of (country) government approval
Growing number of CG assessments focus on transition economies
World Bank has initiated its look at Eurasian corporate governance systems, beginning last year with Georgia

6. Georgia CG ROSC: Overview
Part of Financial System Stability Assessment (FSSA) under the Financial Sector Assessment Program (FSAP), completed October 2001
Proposed by World Bank’s ECSPF in early 2001
Due diligence conducted April-July 2001; report completed December 2001
Government approval received March 2002; ROSC publication online April 2002

7. Georgia CG ROSC: Findings
Shareholder rights (especially minority shareholder protection)
Disclosure and transparency
Adherence to duties by MDs and supervisory board members

8. Georgia CG ROSC: Policy recommendations
Strengthen accounting and auditing profession
Strengthen the securities regulator
Prepare voluntary national code of best practice
Set up IoD
Centralize info on public companies and provide online access

9. Ukraine CG ROSC Being conducted with assistance from IFC
Template and first draft completed and under review as of April 2002
Due diligence mission planned for May 2002
ROSC scheduled for completion FY 2003