Minutes of 20.12.2006 №27

MINUTES No. 27

OF THE BOARD OF DIRECTORS MEETING



Date and time of vote counting:                                         December 20, 2006, 3.00 p.m.

                                                                                     (Moscow time)

Form of vote:                                                                  collective attendance

Site of vote counting:                                                       Moscow, Vernadskogo Prospect, 8a

Number of elected members of the Board of Directors           11

Members of the Board of Directors present at meeting:          A. B. Chubais

                                                                                      B. I. Ayuev

                                                                                      V. A. Zubakin

                                                                                      D. V. Ponomarev

                                                                                      V. Yu. Sinyugin

                                                                                      David Khern


In compliance with Federal Law on Joint-Stock Companies and the company's Articles of Association the quorum for conducting the Board of Directors' meeting is present.


The meeting was chaired by Deputy Chairman of the Board of Directors of JSC HydroOGK A. B. Chubais.


AGENDA OF THE BOARD OF DIRECTORS MEETING:

 

1. Progress implementing the company's development strategy.

2. Basic parameters of activities to be carried out by JSC HydroOGK and its subsidiaries and affiliates in 2007 and in the period of 2007-2011.

3. Investment Programme of the company.

4. Integrated long-term upgrade/renovation programme and a comprehensive set of measures to ensure appropriate reliability of JSC hydropower plants incorporated in JSC HydroOGK.

5. Charity and sponsorship programme of the company for 2007 including distribution of charity funds among young scientists and veterans.

6. long-term electricity (capacity) purchase-sale contracts.

7. Approval of the company's corporate management code.

8. Liability insurance of the members of the company's Board of Directors.

 

RESULTS OF VOTING ON AGENDA:

 

Matter 1: Progress implementing the company's development strategy.


Decision:

1. Take into consideration the report on implementation of the company's development strategy for 2006 (Appendix 1).

2. Determine strategic priorities of JSC HydroOGK for 2007 (Appendix 2).

 

Speakers: A. B. Chubais, V. Yu. Sinyugin, D. V. Ponomarev, D. Khern


Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 


Matter 2: Basic parameters of activities to be carried out by JSC HydroOGK and its subsidiaries and affiliates in 2007 and in the period of 2007-2011.

 

Decision:

1. Take into consideration the basic parameters of activities to be carried out by JSC HydroOGK and its subsidiaries and affiliates in 2007 and in the period of 2007-2011 (Appendix 3).

2. Instruct the Chairman of the Management Board V. Yu. Sinyugin, to update the basic parameters of activities to be carried out by JSC HydroOGK and its subsidiaries and affiliates in 2007 and in the period of 2007-2011 in the course of preparation and coordination of JSC HydroOGK's business plan for 2007-2011.

3. Instruct the Chairman of the Management Board V. Yu. Sinyugin, to prepare the business plan of JSC HydroOGK for the period to 2011 from 2007 and submit it for consideration by the Board of Directors in February of 2007.


Speakers: A. B. Chubais, V. Yu. Sinyugin, V. A. Zubakin, D. Khern

 

Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 3: Investment Programme of the company.


Decision:

1. Approve the Investment Programme of JSC HydroOGK for 2007 (Appendix 4) taking into account a possible adjustment to this programme following the review results of budget requests and the setting of key performance indicators.

2. The Management Board of JSC HydroOGK in a week's time shall ensure that the Investment Programme of JSC HydroOGK is additionally approved by the Ministry of Industry and Energy of the Russian Federation, the Ministry of Economic Development and Trade of the Russian Federation and the Federal Tariff Service.

3. Take into consideration the draft Investment Programme of JSC HydroOGK for 2007-2011 (Appendix 5).

4. Allow the Management Board to finance the projects of Zagorskaya PSHPP-2 and Gotsatlinskaya HPP for the first quarter of 2007 at the cost of JSC HydroOGK and to the extent of a quarter of the annual financing volume from the federal budget with further recovery of financing structure.


Speakers: A. B. Chubais, V. Yu. Sinyugin, D. Khern

 

Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.


 

Matter 4: Integrated long-term upgrade / renovation programme and a comprehensive set of measures to ensure appropriate reliability of JSC hydropower plants incorporated in JSC HydroOGK.


Decision:

Take the technical upgrade and restructuring programme of JSC HydroOGK for the period of 2007-2011 as the basis (Appendix 6).

 

Speakers: A. B. Chubais, V. Yu. Sinyugin


Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 5: Charity and sponsorship programme of the company for 2007 including distribution of charity funds among young scientists and veterans.

 

Decision:

1. Approve the company's aid provided in 2006:

- 2.5 million rubles to be paid to winners of the JSC HydroOGK contest for best research work in the sphere of hydro-power engineering.

- 1.2 million rubles to be paid to veterans and young scientists in the hydropower industry.

2. Take into consideration the Report of charity and sponsorship activities of JSC HydroOGK and its subsidiaries and affiliates for 2006 (Appendix 7).

3. Take into consideration the draft charity and sponsorship programme of JSC HydroOGK and its subsidiaries and affiliates for 2007 (Appendix 8).

 


Speakers: A. B. Chubais, V. Yu. Sinyugin

 

Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 6: Long-term electricity (capacity) purchase-sale contracts.


Decision:

Defer consideration of the issue to a later date.


Speakers: A. B. Chubais, V. Yu. Sinyugin

 

Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 7: Approval of the company's corporate management code.


Decision:

1. Approve the Corporate Management Code of Open Joint Stock Company Federal Hydro-Generating Company (Appendix 9).

2. The Chairman of the company's Management Board shall:

2.1. Ensure publication of the Corporate Management Code on the company's internet site within 15 days from the date of approval.

2.2. Ensure submission for the approval of the company's Board of Directors of the report on observance of Corporate Management Code of the company in accordance with the form (Appendix 10):

- Half-yearly by the results of each half-year (upon the expiry of 2 (two) months from the date of calendar year half-year).

- Annually (as appendix to the annual report of the company).

2.3. Ensure publication of the reports on observance of the Corporate management code on the company's Internet site within 15 days from the date of their approval.

 

Speakers: A. B. Chubais, V. Yu. Sinyugin, D. Khern

 

Voting results:

"For" - 5 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin)

"Against" - 0

"Abstained" - 1 (D. Khern)

Decision made.

 

 

Matter 8: Liability insurance of the members of the company's Board of Directors.


Decision:

1. To approve the Provision on public liability insurance of members of the Board of Directors and the Management Board of the company (Appendix 11).

2. In accordance with the approved Provision on public liability insurance of the members of the Board of Directors and the Management Board, the Management Board of JSC HydroOGK shall develop a standard provision on public liability insurance of the members of the Board of Directors, the sole executive body, the members of the collective executive body of JSC HydroOGK's subsidiary and affiliates (SA), except the SA in which JSC HydroOGK holds 100 per cent - one share. Deadline is March 1, 2007.

3. Instruct the representatives of JSC HydroOGK in the Board of Directors of its subsidiaries and affiliates to vote FOR the approval of the Provision on Public Liability Insurance of the members of the Board of Directors, the sole executive body as well as the members of the collective executive body.


4. Take into consideration that JSC HydroOGK finances this type of insurance out of its net profit.

5. The Management Board of JSC HydroOGK shall investigate the possibility of liability insurance of the members of the company's Board of Directors who are civil officers in accordance with the approved Provision.


Speakers: A. B. Chubais, V. Yu. Sinyugin, D. V. Ponomarev

 

Voting results:

"For" - 6 (A. B. Chubais, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, V. Yu. Sinyugin, D. Khern)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

 

Deputy Chairman of the Board of Directors                        A. B. Chubais

 

Secretary of the Board of Directors                                   M. M. Davydov

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