a) General Meeting, b) Board of Directors. Board of Directors itself consists of two bodies. The organizational-commanding function is performed by the executive body (executive directors), and the control function is performed by independent directors.
As to the European model, it is based on the principle of duality. It means that organizational-commanding and control functions are performed by separate bodies. The model itself has two versions: German version and French version.
The French version consists of two types: 1) Classical type of governance. This type has two-stage governance in place: a) General Meeting and b) Administrative Council. The Administrative Council consists of a President who performs the organizational-commanding function and an independent director who performs the control function.
The German version has three-stage governance in place: a) General Meeting; b) Supervisory Board - performs the control function; c) Executive body – performs the organizational-commanding function. Based on the legislation of the Republic of Azerbaijan, the German version of the European Model of the corporate governance is applied in the companies in Azerbaijan.
Corporate governance mechanism of Qala Insurance OJSC is based on the Civil Code of the Republic of Azerbaijan, the Law of the Republic of Azerbaijan “On Insurance Activity” and international practice on corporate governance: