SOCAR Supervisory Board was established

News | 23.01.2021

On the 23rd of January, President Ilham Aliyev signed a Decree “On measures to improve the management of the State Oil Company of the Republic of Azerbaijan”.

According to the Decree, the Supervisory Board of SOCAR was established to exercise the general management and control over the activities of the State Oil Company of the Republic of Azerbaijan, SOCAR. The Supervisory Board consists of seven members, including the Chairman who is appointed and dismissed by the President of the Republic of Azerbaijan.

The President of the Republic of Azerbaijan has the power to reorganize and liquidate SOCAR, as well as to appoint and dismiss the Members of the Supervisory Board and its Executive Body.

Azerbaijan Investment Holding shall, in coordination with the President of the Republic of Azerbaijan, have the authority to make a decision on:

  • The approval of SOCAR’s Charter and Structure, and the determination of the size of its Authorized Capital;
  • The approval of SOCAR’s Annual Reports and Financial Statements, and allocation of its profits and losses;
  • The approval of SOCAR’s dividend policy;
  • The adoption of a decision on issuing SOCAR’s securities (bonds);
  • Making a decision to conclude a transaction (transaction of special significance) for an amount exceeding 25 per cent of the value of SOCAR’s net assets, and a transaction based on the conclusion of an independent auditor with a relevant person, the value of which is equal to or more than 5 per cent of the value of SOCAR’s assets.

 

The SOCAR Supervisory Board is authorised, among others, to approve the Company’s long-term development strategy, as well as cost and revenue estimates and monitor its implementation.

The Supervisory Board was established in order to increase the efficiency of the State Oil Company’s activities as part of best practices and modern management requirements, and to improve its management in the context of modern corporate management standards.

The composition of the Supervisory Board of the State Oil Company of the Republic of Azerbaijan (SOCAR) was approved today by the Decree of President Ilham Aliyev. Minister of Economy Mikayil Jabbarov has been appointed Chairman of the Supervisory Board.