The aim of the newly established Association is to represent, promote and support Independent Supervisory Board Members in Georgia, appointed by Companies to improve board effectiveness and contribute to better corporate governance.

Involving at least one Independent Member in the Supervisory Board became obligatory to “accountable entities” starting from May 15, 2016, in accordance with the new Georgian legislation on entrepreneurs and securities market.

Appointing an Independent Director in the Supervisory Board is also a necessary condition for a company to place its shares at the stock exchange to raise new equity. This improves the trust of the shareholders as well as creditors, suppliers and other partners and overall increases the ratings of the company.

The set-up of the Independent Directors Association was initiated by its five founding members: Tariel Gvalia, Mamuka Machavariani, Dr. h.c. Sascha Ternes, Gigi Glonti and Victor Kipiani, all of them having vast international experience and proven track record in their respective areas of professions, such as Banking, Finance, Legal, Consulting, Business Administration, etc.

“One of our key tasks within the Association is to focus on the real day-to-day issues faced by Independent Directors and companies, and to contribute our wealth of expertise to enhancing standards of the corporate governance in Georgian companies overall,“ commented Victor Kipiani, partner of MKD.