Responsible Shareholder Engagement - A Kazakh stewardship code

This report focuses on effective investor stewardship. It sets out a series of recommendations to progressively develop a Kazakh Stewardship Code that can be promoted by the AIFC for adoption by both the global and regional asset management firms who are attracted to the AIFC as the financial centre of choice.

The Code would operate on a ‘comply or explain basis’ and complement the recent and planned initiatives to improve the corporate governance of those companies whose securities will be traded on the AIFC’s markets. It is intended that the Code should encourage a constructive and mutually beneficial two-way dialogue between shareholders and the boards of AIFC listed companies based on the mutual understanding of objectives and thereby contribute to both the success of the companies and the standing of the AIFC over the long-term.

The report highlights the importance of adopting a Kazakh Stewardship Code and, drawing lessons from the UK experience of a stewardship code, it recommends a process that can be followed to harness the involvement of key stakeholders in the Code’s development and implementation. The report also discusses the experience of the UK in implementing its Stewardship Code and how effective stewardship underpins responsible shareholder engagement, which enhances the continued confidence of investors in capital markets as well as promoting good corporate governance practices by boards.

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