Corporate governance practice

In accordance with the corporate governance code of the Company, therelationship between the main governing bodies of the Company - theManagement Board, the Board of Directors and the Sole Shareholder of theCompany is carried out within the framework of approved corporateprocedures through the relevant authorized bodies. Following the generallyaccepted principles of corporate governance, the institutions of independentdirectors, the internal audit service are actively functioning in the Company,committees have been created under the Board of Directors of the Company,and the work of the corporate secretary has been established.

Principles and practice

The Company views corporate governance as a means of increasing theefficiency of the Company, strengthening its reputation and reducing thecost of raising capital. The Company views an appropriate corporategovernance system as its contribution to ensuring the rule of law in theRepublic of Kazakhstan and a factor that determines its place in thetemporary economy and society as a whole.

The corporate governance of the Company is based on the principles ofjustice, honesty, responsibility, transparency, professionalism andcompetence. An effective corporate governance structure presupposesrespect for the rights and interests of all stakeholders of the Company andcontributes to the successful operation of the Company, including the growthof its value, maintaining financial stability and profitability.

The principles of corporate governance are aimed at creating trust inrelations arising in connection with the management of the Company andare the basis for all rules and recommendations of the Corporate GovernanceCode. The fundamental principles of the Code are:

  • The principle of protecting the rights and interests of the Sole Shareholder;
  • The principle of effective management of the Company by the Board ofDirectors and the Management Board;
  • The principle of independent activity of the Company;
  • The principle of transparency and objectivity in disclosing information on the Company's activities;
  • Principle of legality and ethics;
  • The principle of responsibility to stakeholders.
Improving the corporate governance system

One of the factors for the Company's successful development is continuouswork to improve the corporate governance system.

In order to improve the corporate governance system, the Company isimplementing the Action Plan to improve the corporate governance systemof KazAgroFinance JSC for 2019–2021.

Also, in order to qualitatively monitor the improvement of the corporategovernance system, the Development Strategy of KazAgroFinance JSC for 2020-2029 includes a key performance indicator “Rating of corporategovernance,%.

The company will continue to carry out planned work to improve the level ofcorporate governance by bringing the management system to worldstandards of best corporate governance practice. The development ofcorporate governance will have a significant impact on improving theefficient operation of the Company, and will allow it to become a successfulcompany operating in accordance with recognized international standards.