Corporate Governance
Tegeta Motors is committed to maintain the highest standards of corporate governance, which fosters long-term confidence of its shareowners, employees, investors and public in general; and strengthens the Board and Management accountability.
The Board is elected by the Shareowners to represent their interests within the company including company’s long-term health, financial strength and overall success. Board of Directors sets company’s long-term vision, mission and strategic goals. The company’s long-term success depends largely on a clear strategy and good corporate governance: protection of owners’ rights, approving major policies and overseeing performance and financial operations of the company. The company’s focus on corporate culture helps to align interests among business, wider stakeholders and society at large.
The Supervisory Board with the help of key internal documents and policies has established the set of Corporate Governance Guidelines which is applicable to Tegeta Holding. This provides a framework for the effective governance of the holding company. The guidelines cover the matters such as Board Mission, Board Committee Structure, Chief Executive Officer performance evaluation, Directors’ qualifications and responsibilities, management succession, daughter-companies’ responsibilities, etc. The Board regularly reviews corporate governance; and the Guidelines are updated if deemed necessary and appropriate.
Tegeta Motors has established Corporate Governance Procedures that monitor subsidiaries, control inventory, accounts receivable/payable, contracts and new projects.
The Company has also established the set of Internal Audit Procedures that regulates the cash flow, tax compliance, sales and expenses, payroll system, inventory, accounts receivable/payable, fixed assets, etc.
Tegeta Motors works with International Financial Corporation (IFC), member of the World Bank Group. The goal is to improve existing corporate governance based on the best international practices. IFC sets a number of recommendations: a) development and implementation of corporate governance improvement plan; b) decision of corporate structure; c) adoption, revision and update of corporate governance related documents; d) appointment of corporate secretary. The Company plans to adopt the majority of these recommendations within 2018-2020.