Minutes of 24.03.2006 №17

MINUTES No. 17

OF THE BOARD OF DIRECTORS MEETING

 

Date and time of meeting:                                             March 24, 2006, 4.00 p.m.

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

Form of vote:                                                               collective attendance

Number of elected members of the Board of Directors:      11

Members of the Board of Directors present at meeting:      Anatoly Borisovich Chubais

                                                                                  Vyacheslav Yuryevich Sinyugin

                                                                                  Yakov Moiseevich Urinson

                                                                                  Boris Ilyich Ayuev

                                                                                  Vasily Aleksandrovich Zubakin

                                                                                  Dmitry Valeryevich Ponomarev

                                                                                  David Khern

                                                                                  Aivaras Abromavichus

                                                                                  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. Mechanisms of the company's strategy implementation in 2006.

2. Approval of the company's business plan for 2006.

3. Predicted plan of financial and economic performance for 2006-2010.

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. Investment Programme of the company for 2006-2010.

6. Establishment of JSC Corporation for Development of Krasnoyarsk Territory.

7. On determination of the company's (company's representatives) opinion regarding the issues in agendas of the Board of Directors' meetings and General Meetings of subsidiaries' and affiliates' shareholders.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Mechanisms of the company's strategy implementation in 2006.

 

Decision:

1.1. Take into consideration the information about progress of the company's principal strategy provisions.

1.2. Establish that the principal implementation mechanisms of the principal strategy provisions are as follows:

- Approval of functional strategies and policies;

- Implementation of a balanced scorecard system;

- Development of the company's five-year plan;

- Approval of strategic priorities for the next year;

- Consideration of the matters on progress of the principal strategy provisions at a meeting of the Board of Directors, introduction of amendments and supplements to the strategy.

1.3. Instruct the Management Board to approve functional strategies and policies provided for by the principal strategy provisions before the 4th quarter of 2006.

1.4. Instruct the Management Board of the company to refine the list of priority tasks to be carried out by JSC HydroOGK in 2006 (Appendix 1) taking into account a discussion that took place at the Board meeting and submit it for consideration by the Board of Directors of JSC HydroOGK (in an absentee form).



Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.


Matter 2: Approval of the company's business plan for 2006.

 

Decision:

2.1. Approve the company's business-plan for 2006 (Appendix 2).

2.2. Approve the company's long-term borrowing programme for 2006 in order to finance the Investment Programme of JSC HydroOGK (Appendix 3).

2.3. Instruct the Chairman of the Company's Management Board V. Yu. Sinyugin, to submit for consideration by the Board of Directors his propositions on the adjustment of key performance indicators and business plan for 2006 following the results of trade secessions in a new model of the Whole sale electricity and capacity market as well as in case of reduction of actual water content and actual supply in relation to planned performance indicators.


Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 3: Predicted plan of financial and economic performance for 2006-2010.

 

Decision:

3.1. Take into consideration the five-year plan of financial and business activities of JSC HydroOGK calculated relying on the basic version of JSC HydroOGK's five-year investment programme.

3.2. Instruct the Management Board to develop the five year financial plan of JSC HydroOGK and submit it for consideration by the Board of Directors of JSC HydroOGK before June 30, 2006.

 

Voting results:

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

"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:

4.1. Take into consideration the information about measures to ensure appropriate reliability of JSC hydropower plants incorporated in JSC HydroOGK.

4.2. Approve:

4.2.1 The predicted technical upgrade and restructuring programme of JSC HydroOGK for the period 2006-2020 (Appendix 4).

4.2.2 The technical upgrade and restructuring programme of JSC HydroOGK for the period 2006-2010 (Appendix 5).

4.3. Instruct the Management Board of JSC HydroOGK to develop and coordinate with JSC SO‑CDU UES the technical upgrade and restructuring programme for hydropower plants incorporated in JSC HydroOGK by 28.09.2006 and submit for approval by the Board of Directors measures to be taken to provide the UES of Russia with primary and secondary frequency regulation functions and emergency control for 2007-2010.

 

Voting results:

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

"Against" - 0

"Abstained" - 0


Decision made.



Matter 5: Investment Programme of the company for 2006-2010.


Decision:

5.1. Approve the Investment Programme of JSC HydroOGK and its subsidiaries and affiliates (SA) for 2006 (Appendix 6);

5.2. Instruct the Chairman of the Management Board of JSC HydroOGK V. Yu. Sinyugin, to submit the Investment Programme of JSC HydroOGK's SA for approval by the Board of Directors of JSC HydroOGK's SA in line with approval of the business plan of JSC HydroOGK's SA for 2006.

5.3. Take the Investment Programme forecast of JSC HydroOGK and its subsidiaries and affiliates for 2007 and towards 2009 as the basis, for further coordination with the state authorities (Appendix 7).

5.4. Instruct the Chairman of the Management Board of JSC HydroOGK V. Yu. Sinyugin, to ensure that the Investment Programme of JSC HydroOGK and its subsidiaries and affiliates for 2007 and towards 2009 is presented during consideration of tariff applications by the state authorities that regulate activities of JSC HydroOGK and its subsidiaries and affiliates.

5.5. Take into consideration the five year investment programme forecast of JSC HydroOGK and its subsidiaries and affiliates for 2006-2010 and instruct the Management Board to refine the mentioned forecast.


Voting results:

"For" - 8 (A. B. Chubais, V. Yu. Sinyugin, Ya. M. Urinson, B. I. Ayuev, V. A. Zubakin, D. V. Ponomarev, A. Abromavichus, P. Endsjo)

"Against" - 0

"Abstained" - 1 (David Khern)


Decision made.


 

Matter 6: Establishment of JSC Corporation for Development of Krasnoyarsk Territory.

 

Decision:

6.1. Approve participation of CJSC Boguchanskaya HPP in Open Joint-Stock company Corporation for Development of Krasnoyarsk Territory.

6.2. Instruct the company's representatives in the Board of Directors of CJSC Boguchanskaya HPP to vote FOR making the following decision on the issue related to participation of CJSC Boguchanskaya HPP in Open Joint-Stock company Corporation for Development of Krasnoyarsk Territory:

- The authorised capital of JSC Corporation for Development of Krasnoyarsk Territory - 120,000,000 (one hundred and twenty million) rubles;

- Category, types, nominal price of shares being placed in the course of establishment of JSC Corporation for Development of Krasnoyarsk Territory - ordinary registered shares with a nominal value of 120,000 (one hundred and twenty thousand) rubles per each share;

- Number of shares being placed in the course of JSC Corporation for Development of Krasnoyarsk Territory - 1,000 (one thousand) shares;

- Number of shares to be purchased by CJSC Boguchanskaya HPP in the course of establishment of JSC Corporation for Development of Krasnoyarsk Territory - 250 shares to the total amount of 30,000,000 (thirty million) rubles that constitutes 25 per cent of the company's authorised capital;

- Form of payment for shares being placed in the course of JSC Corporation for Development of Krasnoyarsk Territory - monetary assets;

- Order of payment for shares being placed in the course of JSC Corporation for Development of Krasnoyarsk Territory - shares are paid during one year from the moment of state registration of the company; at least 50 per cent of shares must be paid within three months from the moment of state registration of JSC Corporation for Development of Krasnoyarsk Territory.

6.3. If the founders of JSC Corporation for Development of Krasnoyarsk Territory fail to reach an agreement on participation of JSC Boguchanskaya HPP in JSC Corporation for Development of Krasnoyarsk Territory then it is necessary to approve participation of JSC HydroOGK (instead of JSC Boguchanskaya HPP) in JSC Corporation for Development of Krasnoyarsk Territory under terms and conditions specified in clause 6.2 of the present decision.


Voting results:

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

"Against" - 0

"Abstained" - 0


Decision made.

 

Matter 7: On determination of the company's (company's representatives) opinion regarding the issues in agendas of the Board of Directors' meetings and General Meetings of subsidiaries' and affiliates' shareholders.

 

Decision:

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

7.1.1 Approve participation of JSC Saratovskaya HPP in JSC Zagorskaya PSHPP-2 under the following conditions:

7.1.1.1 Authorised capital of JSC Zagorskaya PSHPP-2 - 150,000 (one hundred and fifty‑thousand) rubles;

7.1.1.2 Share of JSC Saratovskaya HPP in the authorised capital of JSC Zagorskaya PSHPP-2 is 100 per cent;

7.1.1.3 Category, type of shares of JSC Zagorskaya PSHPP-2 placed at establishment is ordinary registered shares;

- Nominal value of 1 (one) share - 1 (one) ruble;

- The number of shares placed is 150,000 (one hundred and fifty thousand) shares;

7.1.1.4 The method of payment of the authorised capital of JSC Zagorskaya PSHPP-2 - monetary assets.

7.1.1.5 The order of payment of the authorised capital - shares are paid within a year from the moment of state registration of JSC Zagorskaya PSHPP-2. At least 50 per cent of the JSC Zagorskaya PSHPP-2's shares shall be paid within three months from the moment of state registration of the company.


7.2.1 Instruct the company's representatives in the Board of Directors of JSC Saratovskaya HPP (acting as the General Shareholders' Meeting of JSC Malaya Mezenskaya TPP) to vote FOR the following decision:

- Determine the limit quantity of declared ordinary registered shares of JSC Malaya Mezenskaya TPP to the amount of 300,000,000 (three hundred million) pieces with nominal value of 1 (one) ruble each for the total amount of 300,000,000 (three 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;

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

- Method of share payment - monetary assets;

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

7.2.2 Instruct the company's representatives in the Board of Directors of JSC Saratovskaya HPP to vote FOR a decision to reduce a participation share of JSC Saratovskaya HPP in the authorised capital of JSC Malaya Mezenskaya TPP connected with acquisition by JSC RAO UES of Russia of additional shares owned by JSC Malaya Mezenskaya TPP.


7.3. Instruct the company's representatives in the Board of Directors of JSC Sulakenergo to vote FOR approval of a transaction connected with compensatory transfer of JSC Sulakenergo's land plots and constructions in progress located there (Gimrinsky road tunnel and sections of the Makhachkala - Botlikh Road) into possession of the Republic of Dagestan, representing a major transaction under the essential terms to be defined by the Management Board of the company.


7.4. Instruct the company's representatives in the management bodies (the Board of Directors, the General Shareholders' Meeting) of JSC KabbalkHPP to vote FOR making the following decisions in order to fulfill the requirements of article 6 of the Federal Law No. 6 dated 26.03.2003 "On Specifics of Functioning of Electricity Industry during Transition Period and on Amendments to Some Particular Legislative Acts of the Russian Federation in connection with adoption of the Federal Law on the Electricity Industry":

- Termination of functioning of JSC KEUK as the sole executive body of JSC KabbalkHPP;

- Termination of the contract for lease of Akbashskaya HPP No. 1 dated 25.06.1996 and the contract for lease of startup complex of Mini-HPP No. 3 on the Baksan-Malka channel No. 1 dated 25.12.2000 concluded between JSC KabbalkHPP and JSC Kabbalkenergo.

 

Voting results:

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

"Against" - 0

"Abstained" - 0


Decision made.




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


Secretary of the Board of Directors                                  V. S. Pushkarev  

 

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