Private companies in the Kyrgyz Republic previously elected board representatives by simple majority, which decreased minority shareholders’ ability to defend their interests. The new amendments to the Kyrgyz law on joint-stock companies, developed with IFC’s advice, introduce mandatory cumulative voting, which allows for a more proportional representation and gives minority shareholders more power to elect board representatives.

“The introduction of mandatory cumulative voting will reassure investors that their voice will be heard through their representatives on corporate boards,” said Roza Aknazarova, member of the Kyrgyz Parliament.

Sergii Tryputen, Project Manager of the IFC Central Asia Corporate Governance Project, said, “Improving the legal environment within which Kyrgyz companies operate is key to ensuring the country’s continued economic growth. The new law will ensure the equitable treatment of all shareholders, which should help firms to attract more investment.”

The IFC Central Asia Corporate Governance Project is being implemented in partnership with the United Kingdom’s Department for International Development, DFID. The project helps local companies and banks strengthen their corporate governance practices to increase their ability to attract financing and manage risks.

The Kyrgyz Republic became a member and shareholder of IFC in 1993. As of 30 November, 2011, IFC's committed portfolio in the country stood at US$34 million.