President sets up supervisory boards for Azerbaijan Railways, AZAL [UPDATE]
By Ayya Lmahamad
Azerbaijani President Ilham Aliyev signed a decree on establishing the Supervisory Boards of Azerbaijan Airlines CJSC and Azerbaijan Railways CJSC on March 30, Azertag has reported.
Under the decree, Transport, Communications and High Technologies Minister Rashad Nabiyev was appointed as head of the Supervisory Boards. Moreover, the Supervisory Board of Azerbaijan Airlines will consist of seven people, while of Azerbaijan Railways of five people.
Furthermore, the president signed a decree on establishing the Supervisory Board of BakuBus LLC and Baku Metropolitan CJSC on March 30.
Under the relevant decree, Deputy Economy Minister Elnur Aliyev was appointed as head of the Supervisory Boards. The Supervisory Board of BakuBus will consist of three people, while of Baku Metropolitan of five people.
The Supervisory Boards are authorized to approve the companies’ long-term development strategy, estimates of expenses and incomes and monitor their implementation, as well as approval of the policy, internal rules on certain spheres of activity and the provisions of the branches and representative offices.
Moreover, the boards are authorized to make proposals at the general meeting in connection with the conclusion of a transaction in an amount exceeding 25 percent of the value of the companies’ net asset, as well as the conclusion of a transaction with a relevant person by the auditor, the value of which is five or more percent of the companies’ assets.
They are also authorized to create the audit committee and other committees, approve their regulations, appoint and dismiss their heads and members, as well as give consent to the approval of the corporate structure and staffing table of the companies.
Meanwhile, the president signed the order on March 30 changing the presidential order “On the establishment of the Azerbaijan Airlines CJSC” dated April 16, 2008, “On the establishment of the Azerbaijan Railways CJSC” dated July 20, 2009 and "On the establishment of the Baku Metropolitan CJSC" dated on February 27, 2014. At the same time, the president signed a decree on measures to improve the management of BakuBus LLC, in connection with the change in the subordination of BakuBus LLC and its transfer to the management of the Azerbaijan Investment Holding.
In accordance with the orders, the powers, such as the reorganization and the abolition of the companies, the appointment and the dismissal of members of the Supervisory Boards and the companies’ executive body are vested in the Azerbaijani president.
Moreover, under the decrees, the Azerbaijan Investment Holding has the powers to approve the companies’ charter and structure, determine the amount of the authorized capital, approve annual reports, financial statements and distribution of its profit and losses, approve the companies’ dividend policy, as well as make a decision on the issue of the companies’ securities.
The Azerbaijan Investment Holding was entrusted to ensure the diagnostics of the results of activity of the companies in the legal, financial, tax and commercial spheres and inform the country’s president about the results within six months by attracting an international consulting company. Upon the completion of the diagnostics, depending on its result, the Investment Holding is entrusted to prepare and submit a draft of new charter and structure of companies to the Azerbaijani president for approval within two months, and to resolve other issues arising from this order.
Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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