Parliament is reviewing the draft law under an accelerated procedure. Once adopted, it will create a legal basis allowing a public servant — who has no conflict of interest with the enterprise and performs assigned duties without additional remuneration — to become a member of the supervisory board of a company in which the state, or the Autonomous Republic of Abkhazia or Adjara, participates with 50% or less equity.
The legislative package was submitted by MPs of Georgian Dream.
An “Investment Agreement” was signed between the Government of Georgia and the real estate development and investment company EAGLE HILLS DEVELOPMENT HOLDINGS LIMITED of the United Arab Emirates. The agreement defines the activities required to implement large-scale projects for real estate and tourism infrastructure development in Tbilisi and Gardabani (Krtsanisi area) and in Adjara (Batumi/Gonio), as well as a “Shareholders’ Agreement,” which sets out the management rules, capital structure, and framework of partners’ rights and obligations for the jointly owned company Eagle Hills Georgia LLC (ID 404770011).
According to the Shareholders’ Agreement, the supervisory board of Eagle Hills Georgia LLC — jointly owned by the state and EAGLE HILLS DEVELOPMENT HOLDINGS LIMITED — must include representatives of both the investor and the state.
At the same time, the state’s share in the enterprise is defined as less than 50%. Considering the importance and function of this “joint enterprise,” it is necessary for members of its supervisory board to be appointed from among public servants. However, according to the Law of Georgia on Combating Corruption, this is impossible without relevant amendments to the Law of Georgia on Entrepreneurs, which is why the legislative change is being introduced.
