Azerbaijan hands Ministry of Finance a corporate governance role in state companies
The Cabinet of Ministers of the Republic of Azerbaijan has amended the rules governing legal entities whose controlling stake belongs to the state, transferring a function previously held by a commission to the Ministry of Finance of the Republic of Azerbaijan.
Decision No. 367 was signed in Baku on Nov. 3, 2026, by Prime Minister Ali Asadov.
It changes the Cabinet of Ministers decision of June 4, 2019, No. 257 "On approval of a number of normative legal acts on increasing the efficiency of the activity of legal entities whose shares (stakes) controlling package belongs to the state". The amendments were made under paragraph eight of Article 119 of the Constitution of the Republic of Azerbaijan and to implement paragraph 3.2 of the president's decree of Dec. 29, 2025, No. 570 "On approval of the Rules for monitoring the state of implementation of annual and medium-term budget drafts and forecasts, as well as revenue and expenditure estimates, of legal entities in state ownership, legal entities whose shares (stakes) controlling package belongs to the state and public legal entities, and for the analysis of implementation indicators, and of the Rules on the distribution of net profit and the general parameters of dividend policy of legal entities in state ownership, legal entities whose shares (stakes) controlling package belongs to the state and public legal entities".
Part 1 of the 2019 decision has been repealed.
In subparagraph 10.1.2 of annex 2, the "Rules and Standards of Corporate Governance in Joint-Stock Companies Whose Controlling Package of Shares Belongs to the State", the words referring to the commission set up by the Cabinet of Ministers decision of Dec. 30, 2016, No. 534, are replaced by the Ministry of Finance of the Republic of Azerbaijan.
Annex 3, the "Rule on the payment of bonuses to members of the management bodies of legal entities on the basis of a payment system based on the results of the activity of legal entities whose shares (stakes) controlling package belongs to the state", has also been changed. References to the rules for assessing the efficiency of the activity of legal entities are removed from subparagraph 2.1.4, from the first sentence of paragraph 4.1 and from paragraph 4.4, and paragraph 5.7 is repealed.
