Investors complain about one in four joint-stock companies

In the first nine months of this year, the State Securities Committee received 221 written complaint (+39 % compared to the same period last year). As practice shows , the situation with the rights of investors in Azerbaijan is deteriorating with each passing year.

Investors have complained about the SSC on violations of their rights in 411 joint-stock companies . This represents about a quarter of joint stock companies in the country. Number appealed stock has increased over last year by about 50 %. According to the investigation of complaints, the SC has applied administrative sanctions against 264 entities in the amount of 200 to 300 manat. Total fines amounted to about 35 thousand manats, which is 50 % less than in January- September 2012 . Contrary to the Law of Azerbaijan Republic "On protection of the rights of investors in the securities market," the SSC since 2005 has not disclosed the list of JSC that violate the rights of investors.

According to the Civil Code and other normative legal acts, annual reports by JSC shall be made public in the press. Parallel report is provided in the SSC. However, as the SSC report indicates, joint stock companies do not adhere to this requirement. By October 1 of this year, annual reports were submitted to the SSC by 398 JSC, which is 5% more than in 2012.

Since January 2012, the country has standards of corporate governance, which are voluntary for companies. The level of corporate governance and corporate ethics in Azerbaijan still remains at a low level. Neither the ministry nor the SSC take effective steps to change this situation. - 08D-