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Combining supervisory and executive roles is sometimes encountered in Kazakhstan and Uzbekistan, particularly in small and medium-sized enterprises. While it may appear to be an effective solution, it inevitably exposes companies to significant legal and governance risks.
When a managing director, responsible for day-to-day operations, is also expected to evaluate and supervise their own performance as a member of the supervisory board, this raises a fundamental question: whose interests are being protected – those of the company, its shareholders, or the individual themselves?
For this reason, the legislation of Kazakhstan and Uzbekistan explicitly prohibits individuals from holding both roles simultaneously.
Our analysis of corporate governance frameworks in these jurisdictions highlights the rationale behind this restriction and demonstrates why it is essential for ensuring the long-term stability and integrity of business operations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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