Transparency initiative annual report

Figure 4: Relationships between SOCAR and State agencies ³⁸

The relationships between “AzerGold” CJSC and government agencies are outlined below:
The approval of the charter and structure, determination of the amount of the share capital of the “AzerGold” CJSC is carried out by the Cabinet of the Ministers of the Republic of Azerbaijan. Ministry of Economy of the Republic of Azerbaijan is responsible for the appointment and dismissal of the Board of Directors, Supervisory Board, Audit Committee and other members of “AzerGold” CJSC.
The Supervisory Board conducts the management and monitoring procedures of its activities and does not have powers of the executive body. The Supervisory Board is consist of representatives from the Ministry of Economy of the Republic of Azerbaijan (2 people), the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan (1 person), the Ministry of Finance of the Republic of Azerbaijan (1 person) and the State Committee on Property Issues of the Republic of Azerbaijan (1 person).
At the same time, the authority for the preparation of the annual reports, accounting balances, the approval and allocation of profit and loss, the number of employees, determination of payroll and approval of the state budget expenditures is given to the Ministry of Economy of the Republic of Azerbaijan.
The Board of Directors of the “AzerGold” CJSC is its collegial executive body and carries out all the issues related with the Company, except for the powers granted to the General Comission, the Supervision Board and the Audit Committee in accordance with the Code, Order and Charter.

The Chairman and vice-chairman of the Board of Directors of the company are appointed and dismissed by the President of the Republic of Azerbaijan.

The activity of “AzerGold” CJSC is governed in accordance with the Constitution of the Republic of Azerbaijan, the legislation of the Republic of Azerbaijan, decrees and orders of the President of the Republic of Azerbaijan, the resolutions and orders of the Cabinet of Ministers of the Republic of Azerbaijan, other normative-legal acts and the Charter of the Company.³⁹