Approved State Statute of Azerkhalcha

The Cabinet of Ministers approved on October 4^th the charter and structure of Azerkhalcha (Azerbaijan Carpet) JSC established on May 5 by a presidential decree. The charter of the JSC meets the requirements of good corporate governance.

According to the charter, the new state-owned company is engaged in the manufacture of carpets and rugs. It also carries out their export sales organization in the country and abroad.

The authorized capital of JSC Azerkhalcha is defined in the amount of 15 million AZN. The nominal value per share is AZN 1. All of the shares belong to the state. The data about this company are not included in the state register of commercial entities.

The structure of the JSC includes the staff, subsidiaries, branches and representative offices.

The Supervisory Board of JSC Azerkhalcha is composed of three persons appointed by the Ministry of Economics for three years.

The list of powers of the Supervisory Board includes permits for obligations in excess of 1 million AZN, but not more than 25% of the net assets.

 The executive body of the JSC, the Board consists of five members. The chairman and two members of the Board are appointed by the President of Azerbaijan. Two members of the Board are appointed by the Ministry of Economy.

The consolidated annual audited financial report of the company is published in the press no later than 30 June.

The economic activity of JSC Azerkhalcha has not been reported officially. We only know that at the expense of public funding carpet shops are created in the regions.    ---08D