Egamberganov Jahongir Kadambaevich
Tashkent State University of Economics
2nd year student of the Faculty of Corporate Governance.
https://doi.org/10.5281/zenodo.8252652
Qabul qilindi: 30.07.2023
Crossref DOI: 10.24412/cl-37059-2023-07-43-47
Annotation: this article describes proposals and recommendations for the development of the activities of Joint-Stock Companies on the basis of corporate governance in our country, the elimination of problems and problems in the management system of Joint-Stock Companies, the development of a corporate management system in joint-stock companies.
Keywords: reforms, development, Joint-stock companies, modernization, investors.
INTRODUCTION.
The rapid reforms carried out in our country today are aimed at the development of corporate entrepreneurship in the form of competitive National Joint-Stock Companies, which can become the main driving force for economic growth, the nationalization and privatization of property, the protection of the rights of Joint-Stock Companies and shareholders, and private ownership.
OBJECT AND METHODS OF RESEARCH. MATERIALS AND METHODS OF RESEARCH.
Joint-stock companies are important in defining the perspective of the national economy and are performing important socio-economic functions by expanding the scale of production as well as creating new jobs. It is important to effectively organize the corporate management system in joint-stock companies, expand the involvement of internal and external investments in it, implement a promising corporate strategy and carry out other similar priorities.
On the development strategy and effective management of Joint-Stock Companies, the president of the Republic of Uzbekistan Sh.Introduction of the principles and methods of modern standards of corporate governance of Mirziyoev in the “priorities of development and liberalization of the economy”of the action strategy of the development of the Republic of Uzbekistan for 2017-2021 to the processes of development and organization of effective management of the activities of Joint-Stock Companies, it has been defined that strengthening the role of shareholders in the strategic management of enterprises is” considered from important tasks. It is also worth noting that the strengthening of international relations in joint-stock companies established as a result of the nationalization and privatization of property requires a broader implementation of an effective corporate management system. Therefore, further improvement of the corporate management system in joint-stock companies is an important factor in attracting investments in all sectors of the economy.
In the current conditions, reforms related to the modernization of production and the widespread introduction of innovative technologies, the implementation of large-scale and strategically important investment projects is required to attract large-scale capital. One of the traditional directions in the composition of sources of financing such large and strategically important investment projects is the placement of securities in financial markets, and the opportunities of most Joint-Stock Companies to attract funds in this direction are limited due to low investor confidence. The main influencing factor is not only the effectiveness of financial activities of enterprises, but also the presence of investment risks associated with restrictions on the rights of non-depository contributors and especially new contributors to the shares of issuing enterprises as the main influencing factor. In particular, the presence of cases of a violation of the balance of interests in the interaction between the executive director and the shareholders is considered one of the factors affecting the relative limitation of the flow of investments in joint-stock companies and, in particular, in joint-stock companies in the industrial sector. The transparency of the current relationship between shareholders and managers who own the shareholder package is insufficient, and the current legislation does not adequately protect the rights of investors.
The corporate management system formed in our country is characterized by a high level of concentration of capital, which is formed on the one hand as an insufficient development of financial markets, and on the other hand, as the main method of action of shareholders against the control of insolvency.
An Optimal corporate management system can be established at any enterprise. But the capabilities of large vertical integrated corporate structures for such a system are relatively high. In this regard, there are favorable conditions for increasing the efficiency of the corporate management system in our economic entities based on local corporate ownership. Because, as a result of the policy of nationalization and privatization implemented in our country, almost enterprises in the base sector of the economy have been transformed into large vertical integrated organizational structures.
These joint-stock companies have a significant share of the assets corresponding to the total joint-stock companies. Also, the state share in these corporate structures is high, under which State trustees are appointed and given to the trustees to govern. The current state of affairs of trustees confirms that the following factors influence their effective activities:
- while ensuring state participation in business in strategically important industries and sectors is the main goal, its interests are not clearly defined;
- the difficulty of Joint-Stock Companies to attract foreign investors in the sale of their share packages, including state shares, due to the low attractiveness of Investiture;
- the level of use of the potential of information and Communication Technology in the implementation of effective corporate governance in joint-stock companies is very low;
- inadequate incentive mechanisms based on the results of effective management of assigned tasks;
- factors such as lack of competence, i.e. availability of personnel space and lack of fundamentals, competencies and responsibilities of corporate management in existing personnel and professional knowledge and qualifications are affected.
The complex mechanism of corporate governance: including such structural elements as corporate strategy, corporate culture, financial and information transparency, the presence of a system for protecting the rights of shareholders, creditors and other securities owners, each of which is significant for the effectiveness of corporate governance. The pace of macroeconomic stability and economic growth observed in our country creates conditions for the formation of a strategic management system by economic entities operating in the conditions of corporate ownership. But, in modern conditions, there are problems with the development of a corporate culture that embodies the rules and norms that regulate the harmony and agreement of team members, managers, structural structures
In most cases, financial and information transparency serves as an influence factor on the effectiveness of the corporate management system. In our opinion, the occurrence of such problems can be explained by:
- non-disclosure of information on financial economic activities of Joint-Stock Companies;
- insufficient development of information infrastructure of financial markets;
problems with the current financial accounting system and the use of available information in financial statements by the general public of investors.
Full-fledged and timely delivery of information about joint-stock companies to investors is important in ensuring their investiture attractiveness.
In our opinion, in order for broad investors to receive sufficient information about shares and dividends paid on them, it is advisable to include the return (EPS) report per share in the form of an application in the current financial statements in accordance with the applications of international templates of financial statements. This, in turn, ensures the effective implementation of the right of existing investors to receive non-legal accountable information on shares established by law. Also, the improvement of existing financial statements leads to an improvement in the database of corporate control, which is a functional element of corporate governance.
It is known that currently, in developed countries, the information of impartial rating agencies, which are continuously published in the media, plays an important role in assessing the business value of joint-stock companies and exercising corporate control. In our opinion, it is necessary to develop the activities of such impartial rating agencies, which are also part of the infrastructure of the financial market. These rating agencies also assess and publish the rating of the effectiveness of corporate governance in them in the system of comprehensive assessment of the activities of Joint-Stock Companies. The structure of the management structure of Joint-Stock Companies between different forms of ownership in the economy, the specificity of powers and responsibilities in the implementation of the goals and objectives established in the general strategy of development requires a special approach to the issues of managing joint-stock companies.
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