Corporate Behavior Code was presented in Moscow

On September 18, 2001 the 3d Plenary Session of the Corporate Governance Coordination Council of the FCSM of Russia was held in Moscow, where the full draft Corporate Behavior Code was presented for the first time.

According to the FCSM Chairman I. Kostikov, "The text, offered for public discussion, is the next, but obviously the most important stage of the Code development. The purpose is to gather as wide and interested audience as possible for final debates on this topic".

"Corporate Behavior Code will come into effect in II - III Quarter of 2002", said FCSM Chairman at the press conference, held within the framework of the 3d Plenary Session. The finalized Code is supposed to be presented to the Russian Government for review by the end of November, and will then be published. But, according to I. Kostikov, the system of information disclosure regarding compliance or non-compliance of specific issuers with the Code may already be created by the end of 1st Quarter of 2002.

One of the main questions of the Session was the efficiency of the Code and minimal involvement of the State in the process of compliance monitoring. In the opinion of the General Director of OJSC "United Heavy Machinery" Kakha Bendukidze, "the Code shall first of all be adopted by the market, otherwise it will not work". Discussion participants agreed, that a key role in this process is to be played by social organizations, uniting the interests of business community.

After publication of the final variant of the Code, the document is going to be open for updates, and "the process of its improvement will continue as the Code is implemented in practice", - Mr. Kostikov emphasized.

Based on the results of the Plenary Session separate sections discussed chapters of the presented document.

The session was attended by representatives of State ministries and agencies, regulators, international financial organizations, Russian and foreign investors and issuers, professional market participants.

We remind you that in November 2000, at the 1st Plenary Session of the Corporate Governance Coordination Council in St.-Petersburg the FCSM of Russia announced the beginning of the implementation of Russian Corporate Governance Improvement Program, where the key element was the development and introduction into the business practice of the Corporate Behavior Code. The first 4 chapters of the document were presented at the 2nd Plenary Session in April, 2001.

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