he draft proposes to define the notion of the Corporate Governance Code of Rules and the authorizing norm necessary for its adoption by the Civil Code. A corporate governance code of rules is the standard that the state offers its private sector as a guide. The RA Deputy Minister of Economy Rafayel Gevorgyan said this.
He informed that in case of joining the standard, the organizations can implement certain structures defined by the code, which will help the organizations to be more accountable, transparent and prevent certain corruption risks. The key rapporteur emphasized the adoption and wide-scale application of the code of rules, noting that there are also several support mechanisms for this.
The draft law on Making Addendum to the Civil Code of the Republic of Armenia was debated in the first reading at the NA sitting on May 21.
The Chair of the Standing Committee on Financial-Credit and Budgetary Affairs Tsovinar Vardanyan, welcoming the adoption of the Corporate Governance Code of Rules by the organizations, noted that the culture of corporate governance should be substantiated and widely spread in the field of entrepreneurship. In her opinion, organizations providing public services must have a corporate governance code of rules. The Committee Chair mentioned that she is going to come up with such an initiative and make it a mandatory condition for organizations providing public services.
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The co-rapporteur and the member of the Standing Committee on State and Legal Affairs Lilit Minasyan noted that the draft proposes to introduce a non-mandatory code of rules into the corporate governance systems. Such codes of rules will help increase the credibility of organizations with a corporate governance system in international relations, protection of legal issues, transparency and efficiency of management. The MP called on her colleagues to vote for the draft.
National Assembly of the Republic of Armenia
