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Governance Policy Development

What is a Code of Conduct?

A Code of Conduct is a central policy document outlining the ethical standards, values, and expected behavior of all employees and management within the company.

Is anti-money laundering (AML) policy mandatory?

Yes, for "Accountable Persons" defined by Georgian law (banks, casinos, notaries, real estate agents, etc.), having an internal AML policy is a strict legal requirement.

Can we use English policies in Georgia?

Internal policies binding on employees must be in Georgian (or a language the employee understands) to be legally enforceable in labor disputes.

How to handle policy violations?

Violations should be investigated according to the procedure laid out in the policy, potentially leading to disciplinary action or termination under the Labor Code.

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Governance Policy Development: Implementing Standards

In the modern business environment, a company's reputation and sustainability depend not only on financial performance but also on how robust its internal policies are. Governance Policy Development involves creating documents that regulate ethical norms, conflicts of interest, information security, and anti-corruption. In Georgia, approximation to European standards and foreign investor requirements have put the implementation of ESG (Environmental, Social, and Governance) principles on the agenda. The absence of policies or their purely formal nature can lead to serious legal risks, including violations of Anti-Money Laundering (AML) laws or data breaches.

Legal.ge offers services to help you create policies tailored to your organization. Our lawyers ensure that these documents are not just "on paper" but practically enforceable and compliant with Georgian legislation.

What Does the Policy Development Service Cover?

The service includes preparing critical internal regulatory acts:

  • Conflict of Interest Policy: Mechanisms ensuring the separation of personal interests of employees and directors from company interests.
  • Whistleblowing Policy: Creating anonymous channels for reporting violations and guarantees for whistleblower protection.
  • Anti-Corruption and Anti-Bribery Policy: Rules of conduct prohibiting the acceptance and giving of illegal gifts.
  • Insider Trading Policy: Rules restricting the use of confidential information for personal gain (especially in public companies).
  • ESG Policy: Defining the company's responsibility towards sustainable development.

Common Scenarios When Policy Development is Necessary

This service is relevant in the following cases:

  • International Partnerships: Foreign partners and clients often require proof of compliance and the submission of policies before signing contracts.
  • Participating in State Tenders: The existence of anti-corruption and labor safety policies is mandatory for participation in certain tenders.
  • Audit and Due Diligence: The absence of policies is considered a "Red Flag" during investor inspections.
  • Internal Investigations: When a violation occurs within the company, the existence of a policy simplifies the process of holding the perpetrator accountable.

Georgian Legal Framework

When developing policies, one must consider the Labor Code of Georgia (prohibition of discrimination), the Law on Facilitating the Prevention of Money Laundering and Terrorism Financing, and the Law on Personal Data Protection. For public companies, the requirements of the Law on Securities Market regarding insider trading are also mandatory. International conventions to which Georgia is a signatory are important regarding anti-corruption.

Steps in the Process with a Specialist

Cooperation involves:

  1. Gap Analysis: Comparing existing regulations with legislation and best practices.
  2. Risk Assessment: Identifying areas where the company is most vulnerable (e.g., procurement).
  3. Document Drafting: Writing policy texts in clear and unambiguous language.
  4. Integration: Incorporating policies into employment contracts and internal bylaws.
  5. Training: Familiarizing employees with new rules and teaching their practical application.

Why Legal.ge?

Generic policies found online often do not comply with Georgian legislation and cannot protect the company from real risks. Legal.ge gives you access to lawyers specializing in corporate compliance. They will create policies that will be part of your company culture, not just a formality. Protect your business from internal and external threats with the help of Legal.ge.

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Specialists for this service

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