Ўзбекистон республикаси ахборот технологиялари ва коммуникацияларини ривожлантириш вазирлиги муҳаммад ал-хоразмий номидаги

PROSPECTS FOR THE INTRODUCTION OF CORPORATE GOVERNANCE 
 
U.K.Burkhonov (TUIT Karshi branch, senior lecturer) 
 
Analyzing the era, scientists have concluded that in the XIX century was the engine of 
economic development of entrepreneurship, in the XX century - management, and in the XXI 
century, this function goes to corporate governance.
The term "corporate governance" became a frequently used government officials, 
businessmen and journalists. However, so far there is no unified approach to the definition of this 
concept. The term was used first by US economists. With the development of corporate practice 
in the international legal act, approved in April 1999, the Organization for Economic Cooperation 
and Development, has been formulated the following definition of corporate governance is the 
internal means of control over the activities of the corporation ... It involves a set of relationships 
between the board (management, administration) the company, its Board of Directors (Supervisory 
Board), shareholders and other interested parties (stakeholders). The main function of corporate 
governance - ensuring corporations work in the interests of owners, ie, shareholders, providing 
corporate financial resources. And such control mechanisms designed to ensure the responsibility 
of the Supervisory Board to the shareholders, the company's management - to the supervisory 
board, the owners of large blocks of shares - to minority shareholders of the company - to 
employees and customers, and society as a whole. 
Today, the world recognizes as detailed in this document are the five main principles of good 
corporate governance: 
1) The rights of shareholders (corporate governance system should protect the rights of 
shareholders). 
2) Equal treatment of shareholders (corporate governance system should ensure equal 
treatment of all shareholders, including minority and foreign shareholders). 
3) The role of stakeholders in corporate governance (corporate governance system should 
recognize the statutory rights of stakeholders and encourage active cooperation between the 
company and all stakeholders with a view to augmenting social wealth, creating jobs and achieving 
financial stability of the corporate sector). 
4) Information Disclosure and Transparency (corporate governance system should provide 
timely disclosure of reliable information on all essential aspects of the functioning of the 
corporation, including information on the financial position, results of operations, consisting of 
owners and management structure). 

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5) The duties of the Board of Directors (the Board of Directors provides strategic business 
management, effective control over the work of managers and shall be accountable to the 
shareholders and the company as a whole). 
In recent years, the state of corporate relations at the level of joint stock companies in various 
countries around the world is estimated at two main aspects, including: 
- The state of the legal and regulatory framework governing corporate relations, and its 
practical application; 
- The state of the business environment in which the joint stock companies are, as well as the 
nature of the practice of corporate relations. 
The priorities of corporate governance at the same time are: protection of the rights and 
interests of shareholders, ie the owners of JSC; the formation of the executive authority and control 
over its activities; increasing the investment attractiveness of the stock; the accumulation of long-
term economic value by increasing the value of the shares. 
The main prerequisite for increasing the role of corporate governance in the Republic of 
Uzbekistan supports the acute shortage of investment resources needed to upgrade various aspects 
of corporate enterprises linked with an increase in the level of their competitiveness and enhance 
their export potential. Another important prerequisite for the implementation of corporate 
governance has been striving to improve the competitiveness of domestic producers and raise 
middle-class owners of real production. The first President of the Republic of Uzbekistan Islam 
Karimov has repeatedly emphasized that: "The transfer of ownership in the hands of the present 
owners, providing them with opportunities for business and is the main point of economic 
reforms." 
In order to promote the accelerated development of the private sector, dramatically 
increasing its role and importance in the economy, a radical improvement of the system of 
corporate governance of privatized enterprises by the Decree of The first President of the Republic 
of Uzbekistan №4720 from May 25, 2015 "On measures to radically increase the proportion and 
significance of private sector in the Uzbekistan's economy "is recognized inexpedient the 
preservation of the state share in the authorized capital of joint stock companies in the amount of 
25 percent or less, and instructed to carry out its implementation mainly in private ownership. 
In order to improve the system of training, retraining and advanced training of the managerial 
personnel of companies, increasing business management efficiency in terms of corporate 
governance at the Higher School of Business under the Cabinet of Ministers set up Research and 
Education of corporate governance center, which will be education and training of members of the 
supervisory councils, members of executive bodies of companies, members of audit committees, 
employees trust managers of investment assets and state attorneys, specialists of state bodies of 
economic regulation, the shareholders and owners of private enterprises. 
Timely study and implementation of the best international corporate governance experience 
in the practice of the best enterprises of the republic should allow: 
- To ensure the formation of long-term strategies for the development of enterprises, aimed 
at the high end of the economic entity; 
- Implement effective management structures that would allow the unity of rights and 
responsibilities of all the functional and structural units of the final results of the joint-stock 
company; 
- Form codes of conduct, providing incentives for the development of corporate relations and 
designed to be a decisive factor in resolving corporate conflicts and harmonize the interests of all