The Cabinet of Ministers adopted Decree No. 647 of 4 November, 2022 "On measures to improve the procedure for the formation of candidates for the supervisory boards of state enterprises".

The document was developed by the State Assets Management Agency within the framework of the Strategy for Management and Reform of State Enterprises for 2021-2025 and determines the following:

• the procedure for attracting candidates to the supervisory boards of business entities with the state share in the authorized capital of 50 percent or more and state unitary enterprises (hereinafter - state enterprises), centralized management and coverage of the process of attracting candidates to the supervisory boards, in particular the composition of the supervisory boards and changes that have occurred in it through a special web portal www.cns.davaktiv.uz;
• the introduction of practices for selecting candidates for supervisory board members based on criteria such as industry expertise, management experience, financial, corporate governance, strategic planning and other qualifications;
• From 1 January 2023, state enterprises must post information on changes in the current composition of management and control bodies, as well as on existing vacancies in these bodies on a special portal within two working days of making such changes;
• not to allow remuneration for members of the executive body and the supervisory board who have not placed information on changes in the current composition of the management and control bodies, as well as on the existing vacancies in them on the special portal;
• not applying the requirements of this Resolution to 71 enterprises subject to transformation, the formation of candidates for the supervisory boards of these state enterprises will be carried out by the State Assets Management Agency in coordination with the ministries, departments and the Agency for Strategic Reforms, performing the functions of the owner (the founder, shareholder, participant) on behalf of the state.

In turn, the Decree approved the Regulation on the selection of candidates for the supervisory boards of state enterprises on the state share, which determines:

• Acceptance of applications of candidates through a special web portal;
• evaluation of candidates on the basis of certain criteria by the selection committee, including representatives of interested ministries, formed in the State Assets Management Agency, the formation of a short list of at least 3 candidates for each position and the selection of one appropriate candidate through an interview; and
• Not allowing the following individuals to participate as candidates for state share supervisory boards :
  - Individuals without higher education and two years of work experience;
  - employees of public administration bodies that perform regulatory or supervisory functions;
  - individuals who have been convicted of crimes of corruption with an unexpunged conviction for a crime in the field of economy or against administrative order;
  - Individuals who do not have a qualification certificate as a corporate administrator;
  - Individuals who are members of five or more supervisory boards;
  - Employees of organizations that provided audit services in the company or its affiliates during the last 3 years;
• if the founding documents of the company provide gender equality of the Supervisory Board members, to conduct separate selection of female and male candidates;
• not to extend the requirements of this Regulation to the enterprises with the participation of local authority bodies.