Minutes of 10.04.2006 №18

MINUTES No. 18

OF THE BOARD OF DIRECTORS MEETING


Date and time of vote counting:                                      April 10, 2006, 6.00 p.m.

                                                                                  (Moscow time)

Form of vote:                                                                by questioning

Site of vote counting:                                                    Moscow, Vernadskogo Prospect, 101, bld. 3 

Number of elected members of the Board of Directors        11

Members of the Board of Directors present at meeting:        Viktor Borisovich Khristenko

                                                                                    Anatoly Borisovich Chubais

                                                                                    Vyacheslav Yuryevich Sinyugin

                                                                                    Yakov Moiseevich Urinson

                                                                                    Andrey Natanovich Rappoport

                                                                                    Boris Ilyich Ayuev

                                                                                    Vasily Aleksandrovich Zubakin

                                                                                    Dmitry Valeryevich Ponomarev

                                                                                    Aivaras Abromavichus

                                                                                    David Aleksander Khern

                                                                                    Per-Christian Endsjo


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.

 

AGENDA OF THE BOARD OF DIRECTORS MEETING:

 

1. Approval of the Environmental Policy Implementation Programme of JSC HydroOGK for 2006-2008.

2. Approval of the development and establishment standard for the key performance indicators (KPIs) of subsidiaries and affiliates of JSC HydroOGK.

3. Recommendations to the General Shareholders' Meeting of the company on a matter concerning an increase in the authorised capital of the company by means of placing additional shares.

4. Participation of the company in the All-Russian Industrial Association of Electricity Energy Employers (RAEL Association).

5. Participation of the company in the non-commercial partnership Innovations in Electricity (NP INVEL).

6. Approve an insurance company that JSC HydroOGK intends to conclude voluntary medical insurance contracts with in 2006.

7. Establishment of JSC HydroOGK's branch - Novosibirskaya HPP.

8. Determination of the company's position (company's representatives) on the agenda issues of the meetings of the Boards of Directors and general shareholders' meetings of subsidiaries and affiliates (SA) of the company.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Approval of the Environmental Policy Implementation Programme of JSC HydroOGK for 2006-2008.


Decision:

1. Approve the Environmental policy implementation programme of JSC HydroOGK for 2006-2008 pursuant to Appendix 1.

2. When adjusting the business-plan of JSC HydroOGK for 2006 provide for 300,000 rubles to implement clause 8.

3. When developing tariffs and business plans of JSC HydroOGK and SA of JSC HydroOGK and managed companies for 2007-2008 provide for financing of the programme in the full scope.

 

Voting results:

"For" - 10 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, P. Endsjo)

"Against" - 1 (D. Khern)

"Abstained" - 0

Decision made.

 

Matter 2: Approval of the development and establishment standard for the key performance indicators (KPIs) of subsidiaries and affiliates of JSC HydroOGK.


Decision:

1. Approve the development and establishment standard for the key performance indicators (KPI) of subsidiaries and affiliates of JSC HydroOGK pursuant to Appendix 2.

2. The chairman of the Management Board, V. Yu. Sinyugin, shall prepare amendments to the Articles of Association of JSC HydroOGK determining the opinion of the Board of Directors of JSC HydroOGK concerning the establishment (adjustment) of key performance indicators (KPI) of subsidiaries and affiliates of JSC HydroOGK and review of their implementation reports.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 3: Recommendations to the General Shareholders' Meeting of the company on a matter concerning an increase in the authorised capital of the company by means of placing additional shares.

 

Decision:

Take this issue off the agenda.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 4: Participation of the company in the All-Russian Industrial Association of Electricity Energy Employers (RAEL Association).


Decision:

Participation of the company in the All-Russian Industrial Association of Electricity Employers (RAEL Association) under the following essential terms:

- admission fee amount - 30,000 (thirty thousand) rubles;

- method of admission fee payment - monetary assets;

- a membership fee - as specified by the Articles of RAEL Association.


Voting results:

"For" - 10 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, A. N. Rappoport, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 1 (A. Abromavichus)

Decision made.

 

Matter 5: Participation of the company in the non-commercial partnership Innovations in Electricity (NP INVEL).


Decision:

1. Approve participation of the company Innovations in the Electricity (NP INVEL) under the following essential terms:

- an admission fee amount in 2006 is 300,000 rubles.

2. The Chairman of the company's Management Board, V. Yu. Sinyugin, shall ensure that JSC HydroOGK becomes a member of NP INVEL before June 1, 2006.


Voting results:

"For" - 9 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, A. N. Rappoport, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, P. Endsjo)

"Against" - 0

"Abstained" - 2 (D. Khern, A. Abromavichus)

Decision made.

 

Matter 6: Approve an insurance company that JSC HydroOGK intends to conclude voluntary medical insurance contracts with in 2006.


Decision:

Approve JSC ROSNO as an insurance company that JSC HydroOGK intends to conclude voluntary medical insurance contracts with in 2006.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 7: Establishment of JSC HydroOGK's branch - Novosibirskaya HPP.


Decision:

1. Establish JSC HydroOGK's branch - Novosibirskaya HPP in the city of Novosibirsk.

2. To amend the Articles of Association of JSC HydroOGK, as follows:

Supplement the Articles of Association of JSC HydroOGK with Appendix No. 1 List of branches and Representative Offices of JSC HydroOGK (Appendix 3) having included the following data:


No.

Company's name:

on a branch / representative office

Location

1.

Branch Novosibirskaya HPP

630056, Russia, Novosibirsk, Novomorskaya Str., 4


3. Instruct the management chairman, V. Yu. Sinyugin, to ensure that all administrative and technical measures, related to establishment of the company's branches, are taken within the first half of 2006.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 8: Determination of the company's position (company's representatives) on the agenda issues of the meetings of the Boards of Directors and general shareholders' meetings of subsidiaries and affiliates (SA) of the company.


Decision:

1.1. In order to enhance performance efficiency of JSC KabbalkHPP approve transfer of the property of JSC KabbalkHPP that is used to produce electricity (Akbashskaya HPP No. 1 and mini-HPP No. 3 on the Baksan-Malka channel) into temporary possession and use at a charge by JSC SC Cascade of Ninzhne-Cherekskie HPPs.

1.2. Instruct the company's representatives in the Board of Directors of the company and if necessary at the General Shareholders' Meeting of JSC KabbalkHPP to vote FOR adopting the decisions required to transfer the property that is used to produce electricity into temporary possession and use at a charge.

 

Voting results:

"For" - 10 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, P. Endsjo)

"Against" - 0

Abstained" - 1 (D. Khern)

Decision made.


2.1. Instruct the company's representatives in the Board of Directors of JSC Zamaragskiye HPPs to vote FOR inclusion of the following matters into the agenda of the annual General Shareholders' Meeting of JSC Zamaragskiye HPPs:

- Approval of a contract on the sale and purchase of shares of JSC Northern Ossetian Hydro-Generating Company concluded between JSC Sevkavkazenergo and JSC Zaramagskiye HPPs representing an interested party transaction;

- Approval of a contract on placement of indebtedness of JSC Sevkavkazenergo to be received by JSC OGK-5 onto JSC Zaramagskiye HPPs representing an interested party transaction.

2.2. To authorise representatives of the company in the Board of Directors of JSC Zaramagskiye HPPs, to vote FOR the following decision:

2.2.1. Approve participation of JSC Zaramagskiye HPPs in JSC Northern Ossetian Hydro-Generating Company through share acquisition under a sale-purchase contract on the following essential terms:

Parties to Contract:

The Seller: JSC Sevkavkazenergo;

The Buyer: JSC Zaramagskiye HPPs

- number of shares: 101,940,000 (one hundred and one million, nine hundred and forty thousand) shares that constitutes 56.02 per cent of the authorised capital of the company;

- type and category of securities: ordinary registered shares;

- nominal price of 1 (one) share: 1 (one) ruble;

- acquisition price of 1 (one) share: 1 (one) ruble;

- total value of securities: 101,940,000 (one hundred and one million, nine hundred and forty thousand) rubles;

- form of payment: monetary assets paid by instalments within 3 months from the date of signing the contract.

2.3. To authorise representatives of the company in the Board of Directors of JSC Zelenchukskiye HPPs, to vote FOR the following decision:

2.3.1. Approve participation of JSC Zelenchukskiye HPPs in JSC Karachaevo-Cherkessia Hydropower Company by purchasing shares on the following essential terms:

Parties to Contract:

The Seller: JSC Karachaevo-Cherkesskenergo

The Buyer: JSC Zelenchukskie HPPs

- number of shares: 6,582,580 (six million, five hundred and eighty-two thousand five hundred and eighty) shares that constitutes 99.99999985 per cent of the authorised capital of the company;

- share of JSC Zelenchukskiye HPPs in the authorised capital of the company after acquisition of shares: 100 %;

- type and category of securities: ordinary registered shares;

- nominal price of 1 (one) share: 1 (one) ruble;

- acquisition price of 1 (one) share: 1 (one) ruble;

- total value of securities: 6,582,580 (six million, five hundred and eighty-two thousand, five hundred and eighty) rubles;

- form of payment: monetary assets prior to transfer of title to the shares.


Voting results:

"For" - 10 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, B. I. Ayuev, A. N. Rappoport, D. V. Ponomarev, A. Abromavichus, P. Endsjo)

"Against" - 0

"Abstained" - 1 (D. Khern)

Decision made.

3.1. To instruct the company's representatives in the Board of Directors of JSC Sulakenergo to vote FOR the following matters to be included to the agenda of an General Shareholders' Meeting of JSC Sulakenergo:

- Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares;

- Introduction of amendments and supplements to the company's Articles of Association;

- An increase of the company's authorised capital by offering additional shares;

- Approval of an interested-party transaction.

3.2. Instruct the company's representatives in the General Shareholders' Meeting of JSC Sulakenergo to vote FOR making the following decision in relation to the Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares:

1)  Determine limit of declared ordinary registered shares of JSC Sulakenergo to the amount of 508,000,000 (five hundred and eight million) shares with nominal value of 10 (ten) rubles each for the total amount of 5,080,000,000 (five billion and eighty million) rubles;

2)  Odinary registered shares declared for placement by JSC Sulakenergo provide their holders with the rights stipulated in clause 6.2. of the Articles of Association of JSC Sulakenergo.

3.3. Instruct the company's representative in the General Shareholders' Meeting of JSC Sulakenergo to vote FOR the following decision making in relation to "An increase of the authorised capital of JSC Sulakenergo by offering additional shares":

- increase the authorised capital of JSC Sulakenergo HPPs by placing additional ordinary registered shares to the amount of 508,000,000 (five hundred and eight million) shares with nominal value of 10 (ten) rubles each for the total amount of 5,080,000,000 (five billion and eighty million) rubles;

- method of placement - private subscription, a group of individuals among which additional shares are assumed to be placed - JSC RAO UES of Russia, JSC HydroOGK;

- additional shares are placed at a price determined by the Board of Directors of JSC Sulakenergo in accordance with articles 36, 77 of the Federal Law On Joint-Stock Companies but not less than their nominal value;

- a price of additional shares offered to shareholders having the pre-emptive right for acquisition of additional shares being placed) - at the price determined by the Board of Directors of JSC Sulakenergo in accordance with Article 36 of the Federal Law On Joint-Stock Companies;

- method of payment of shares - monetary assets, movable and immovable property used to produce and sell electricity;

- monetary appraisal of the property to be used to pay for the offered additional shares is determined by the Board of Directors of JSC Sulakenergo in accordance with articles 34, 77 of the Federal Law On Joint-Stock Companies, based on the opinion of an independent appraiser accredited by the Evaluation Committee under the supervision of the Board of Directors of JSC RAO UES of Russia;

- procedure for share payment - the shares shall be paid at their placement in full.

3.4. Instruct the company's representatives in the General Shareholders' Meeting of JSC Sulakenergo to vote FOR introduction of amendments and supplements to the Articles of Association of JSC Sulakenergo connected with an increase in the authorised capital of JSC Sulakenergo.


Voting results:

"For" - 10 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, P. Endsjo)

"Against" - 0

"Abstained" - 1 (D. Khern)

Decision made.


4.1. Instruct the company's representatives in the Board of Directors of JSC Zamaragskiye HPPs to vote FOR inclusion of the following matters into the agenda of the annual General Shareholders' Meeting of JSC Zamaragskiye HPPs:

- Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares;

- Introduction of amendments and supplements to the company's Articles of Association;

- An increase of the company's authorised capital by offering additional shares;

- Approval of an interested-party transaction.

4.2. Instruct the company's representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote FOR making the following decision in relation to the Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares:

1) to determine limit number of declared ordinary registered shares of JSC Zaramagskiye HPPs in the amount of 1,500,000 (one million five hundred thousand) pieces with nominal value of 1,000 (one thousand) rubles each for the total amount of 1,500,000,000 (one billion five hundred million) rubles;

2) ordinary registered shares declared by JSC Zaramagskiye HPPs to be released provide their holders with rights stipulated in paragraph 6.2. of the Articles of Association of JSC Zaramagskiye HPPs.

4.3. To instruct the company's representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote FOR the following decision making in relation to "An increase of the authorised capital of JSC Zaramagskiye HPPs by offering additional shares":

- to increase an authorised capital of JSC Zaramagskiye HPPs by placing additional ordinary registered shares in the amount of 1,500,000 (one million five-hundred-thousand) pieces with nominal value of 1,000 (one thousand) rubles each for the total amount of 1,500,000,000 (one billion five-hundred million) rubles;

- method of placement - private subscription, a group of individuals among which additional shares are assumed to be placed - JSC RAO UES of Russia, JSC HydroOGK;

- additional shares are placed at a price determined by the Board of Directors of JSC Zaramagskiye HPPs in accordance with articles 36, 77 of the Federal Law On Joint-Stock Companies but not less than their nominal value;

- a price of additional shares offered to shareholders having the pre-emptive right for acquisition of additional shares being placed) - at the price determined by the Board of Directors of JSC Zaramagskiye HPPs in accordance with Article 36 of the Federal Law On Joint-Stock Companies;

- method of share payment - monetary assets;

- procedure for share payment - the shares shall be paid at their placement in full.

4.4. Instruct the company's representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote FOR introduction of amendments and supplements to the Articles of Association of JSC Zaramagskiye HPPs connected with an increase in the authorised capital of JSC Zaramagskiye HPPs.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.


5.1. To authorise representatives of the company in the Board of Directors of JSC Boguchanskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Boguchanskaya HPP for 2006 pursuant to Appendix 4.

5.2. To authorise representatives of the company in the Board of Directors of JSC Volzhskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Volzhskaya HPP for 2006 pursuant to Appendix 5.

5.3. To authorise representatives of the company in the Board of Directors of JSC Votkinskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Votkinskaya HPP for 2006 pursuant to Appendix 6.

5.4. To authorise representatives of the company in the Board of Directors of JSC Zhigulevskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Zhigulevskaya HPP for 2006 pursuant to Appendix 7.

5.5. To authorise representatives of the company in the Board of Directors of JSC Zaramagskiye HPPs, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Zaramagskiye HPPs for 2006 pursuant to Appendix 8.

5.6. To authorise representatives of the company in the Board of Directors of JSC Zeyskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Zeyskaya HPP for 2006 pursuant to Appendix 9.

5.7. To authorise representatives of the company in the Board of Directors of JSC Zelenchukskiye HPPs, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Zelenchukskiye HPPs for 2006 pursuant to Appendix 10.

5.8. To authorise representatives of the company in the Board of Directors of JSC Kamskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Kamskaya HPP for 2006 pursuant to Appendix 11.

5.9. To authorise representatives of the company in the Board of Directors of JSC Nizhegorodskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Nizhegorodskaya HPP for 2006 pursuant to Appendix 12.

5.10. To authorise representatives of the company in the Board of Directors of JSC Saratovskaya HPP, to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Saratovskaya HPP for 2006 pursuant to Appendix 13.

5.11. To authorise representatives of the company in the Board of Directors of JSC Neporozhniy SShHPP to vote FOR the following decision:

- approve the Insurance Coverage Programme of JSC Neporozhniy SShHPP for 2006 pursuant to Appendix 14.


Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.


6.1. Instruct the company's representatives in the Boards of Directors of the company's SA to vote FOR inclusion of the following matter into the agenda of the annual general shareholders' meetings of the company's SA:

- Introduction of amendments to the company's Articles of Association (approval of the Articles of Association as amended).

6.2. Instruct the company's representatives at the general shareholders' meeting of the company's subsidiaries and affiliates to vote FOR introduction of supplements to the Articles of Association of these SA (approving the Articles of Association as amended) ensuring that a clause of the SA's Articles of Association determining the competence of the SA's Board of Directors with respect to preliminary approval of transactions is supplemented with the following sub-clauses.

- transactions (including several interconnected transactions) connected with disposal or possible disposal of the company's property, including fixed assets, intangible assets and construction in progress, that is not intended for production, transfer, dispatching, distribution of electricity and thermal power in cases (amounts) determined by separate resolutions of the company's Board of Directors;

- transactions (including several interconnected transactions) connected with disposal or possible disposal of the company's property, including fixed assets, intangible assets and construction in progress, that is intended for production, transfer, dispatching, distribution of electricity and thermal power in cases (amounts) determined by separate resolutions of the company's Board of Directors".

6.3. Instruct the company's representatives at the General Shareholders' Meetings of the company's SA to vote FOR introduction of individual amendments and supplements to the SA's Articles of Association (approving the Articles of Association as amended).

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.

 

7. Instruct the company's representatives at the General Shareholders' Meetings of the company's SA to vote FOR approval of the SA's internal document determining the order of payment of fees and compensation to the members of the SA's Board of Directors as amended pursuant to Appendix 15.


Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.

 

8. Instruct the company's representatives in the Board of Directors of JSC Zeyskaya HPP to vote FOR inclusion of the following matter into the agenda of the annual General Shareholders' Meeting of JSC Zeyskaya HPP:

- Approval of the Provision on the Procedure for Convening and Running the Board of Directors' Meetings.

 

Voting results:

"For" - 11 (V. B. Khristenko, A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, V. A. Zubakin, A. N. Rappoport, B. I. Ayuev, D. V. Ponomarev, A. Abromavichus, D. Khern, P. Endsjo)

"Against" - 0

"Abstained" - 0

Decision made.


Questionnaires of the members of the Board of Directors are attached.

 



 

Chairman of the Board of Directors                                                               V. B. Khristenko


Secretary of the Board of Directors                                                               V. S. Pushkarev

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