Minutes of 24.12.2008 №69

MINUTES No. 69

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors Meeting
(date and time of vote counting):                                      December 24, 2008, 6:00 p.m.

                                                                                    (Moscow time)

Minutes Dated:                                                                December 26, 2008

Site of vote counting:                                                      Mosсow, Arkhitektora Vlasova Str., 51

Number of elected members of the Board of Directors          13

Members of the Board of Directors present at meeting:          V. Yu. Sinyugin

                                                                                      D. S. Akhanov

                                                                                      B. I. Ayuev

                                                                                      D. V. Ponomarev

                                                                                      A. N. Rappoport

                                                                                      Seppo Remes

                                                                                      Yu. A. Udaltsov

                                                                                      Ya. M. Urinson

                                                                                      R. Z. Khamitov

                                                                                      A. V. Sharonov


In compliance with the 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. Amending the Provision on the company's investment activities.

2. Updating the company's Investment Programme for 2008.

3. Investment Programme of the company for 2009.

4. Approval of the report on implementation of the company's business plan for nine months 2008 (including a report on implementation of the Investment Programme for nine months of 2008).

5. Approval of the report on implementation of key performance indicators for the third quarter of 2008.

6. Introduction of changes to the key performance indicator assessment and calculation method used within the company.

7. Approval of the insurance coverage programme of the company for 2009.

8. Holding more than one office by members of the Management Board in the management bodies of other organisations.

9. Concerning the company's participation in other companies.

10. On determination of company's (company's representatives) opinion regarding the issues put on agenda of the Board of Directors' Meetings as well as General Meetings of the company's subsidiaries and affiliates (SA).

10.1. Decision regarding participation (change of participation share) of the company's subsidiaries and affiliates in other organisations.


Additional points on the agenda:

 

10.2.  Determination of the agenda of General Shareholders' Meeting of subsidiaries and affiliates (SA).

11. Risk register of JSC RusHydro and measures to mitigate risks.

12. Approving the company's transactions:

12.1. Approval of a transaction with JSC GVC Energetiki which is an interested party transaction.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Amending the Provision on the company's investment activities.


Decision:

Take this issue off the agenda of the Board of Directors.


Voting results:

"For" - 9 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov)

"Against" - 0

"Abstained" - 0

Decision made.

A member of the Board of Directors, A. V. Sharonov, did not take part in voting on the matter.

 

 

Matter 2: Updating the company's Investment Programme for 2008.


Decision:

Defer consideration of the issue to a later date.

 

Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


 

Matter 3: Investment Programme of the company for 2009.

 

Decision:

Defer consideration of the issue to a later date.

 

Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.



Matter 4: Approval of the report on implementation of the company's business plan for nine months 2008 (including a report on implementation of the Investment Programme for nine months of 2008).


Decision:

Approve the report on implementation of JSC RusHydro business plan for nine months of 2008, including JSC RusHydro Investment Programme report for nine months of 2008 (Appendix 1).


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.



Matter 5: Approval of the report on implementation of key performance indicators for the third quarter of 2008.

 

Decision:

Approve the report on implementation of key performance indicators of JSC RusHydro for the third quarter of 2008 (Appendix 2).


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 6: Introduction of changes to the key performance indicator assessment and calculation method used within the company.

 

Decision:

Amend a decision of the company's Board of Directors dated 26.09.2008 (minutes No. 62) presenting the clause 2.1.2 as follows: The methods of calculation and evaluation of JSC RusHydro's key performance indicators as amended according to Appendix 3.

 

Voting results:

"For" - 9 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (D. S. Akhanov)

"Abstained" - 0

Decision made.

 

 

Matter 7: Approval of the insurance coverage programme of the company for 2009.


Decision:

7.1. Approve the following insurance companies for securing the insurance coverage of JSC RusHydro in 2009:


No.

Type of insurance

Insurer

1.

Insurance of JSC RusHydro's property including constructions in progress against all risks.

JCS ROSNO

2.

Insurance of construction and erection works: against losses «all risks» and public liability insurance before third parties.

OJSIC Ingosstrakh

3.

Voluntary medical insurance and accident and illness insurance.

JCS ROSNO

4.

Public liability insurance of organisations operating dangerous industrial facilities, public liability insurance of owners of hydro engineering facilities.

JSC AlfaStrakhovanie

5.

Public liability insurance of transport means owners, insurance of transport means, insurance of water transport means.

JCS ROSNO


7.2. Approve the Insurance Coverage Programme of JSC RusHydro for 2009 (Appendix 4).

 

Voting results:

"For" - 9 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (D. S. Akhanov)

Decision made.


 

Matter 8: Holding more than one office by members of the Management Board in the management bodies of other organisations.


Decision:

8.1. Approve holding of posts in the Board of Directors (Supervisory Boards) of Non-profit Partnership Corporate Research and Training Centre of Unified Energy System (NP CRTC UES) and Closed Joint Stock Company Management Company of Corporate Energy University by Vasily Aleksandrovich Zubakin, member of the Management Board, Deputy Chairman of JSC RusHydro.

8.2. Approve holding of a post in the Board of Directors of KIT Finance Investment Bank (JSC) by Sergey Aleksandrovich Yushin, member of the Management Board of JSC RusHydro.


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

Matter 9: Concerning the company's participation in other companies.


Decision:

9.1. Defer consideration of the issue of JSC RusHydro's participation in JSC Institute Hydroproject to a later date.


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Decision:

9.2. Approve participation of JSC RusHydro in JSC Malaya Mezenskaya TPP by purchasing additional shares of JSC Malaya Mezenskaya TPP subject to the following conditions:

- category, type, nominal value; ordinary registered shares with nominal value of 1 (one) ruble per share;

- number of acquired shares: 152,899,159 (one hundred and fifty two million eight hundred and ninety nine thousand one hundred and fifty nine) shares; JSC RusHydro is entitled to purchase less shares of JSC Malaya Mezenskaya TPP, in this case JSC Malaya Mezenskaya TPP transfers the corresponding number of paid shares into ownership of JSC RusHydro;

- share acquisition price: At the offering price of additional shares of JSC Malaya Mezenskaya TPP which is 1 (one) ruble 19 (nineteen) kopecks per 1 (one) additional ordinary registered share to the total amount not exceeding 181,950,000 (one hundred and eighty one million nine hundred and fifty thousand) rubles;

- method of share payment - monetary assets;

- JSC RusHydro's share in the authorised capital of JSC Malaya Mezenskaya TPP prior to purchasing shares of additional issue - 100 per cent; RusHydro's share in the authorised capital of JSC Malaya Mezenskaya TPP after purchasing shares of additional issue - 100 per cent (remains unchanged).


Voting results:

"For" - 9 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (D. S. Akhanov)

Decision made.

 

Decision:

9.3.1. To approve participation of JSC RusHydro in JSC Sulakskiy HydroCascade by way of acquiring additional shares of JSC Sulakskiy HydroCascade, subject to the following conditions:

- category, type, nominal value; ordinary registered shares with nominal value of 1 (one) ruble per share;

- number of acquired shares: 660,187 (six hundred thousand one hundred and eighty seven) shares; JSC RusHydro may acquire less shares of JSC Sulakskiy HydroCascade shares, in this case JSC Sulakskiy HydroCascade shall transfer the corresponding number of paid shares into the ownership of JSC RusHydro;

- share acquisition price: at the offering price of additional shares of JSC Sulakskiy HydroCascade amounting to 643 (six hundred and forty three) rubles per 1 (one) additional ordinary registered share, for the total amount not exceeding 424,500,241 (four hundred and twenty four million five hundred thousand two hundred and forty one ) rubles;

- the order of share payment - monetary assets, property according to Appendix 5, whose market value according to the opinion of an independent appraiser is 124,500,000 (one hundred and twenty four million and five hundred thousand) rubles (rounded up);

- JSC RusHydro's share in the authorised capital of JSC Sulakskiy HydroCascade prior to purchasing shares of additional issue - 100 per cent; JSC RusHydro's share in the authorised capital of JSC Sulakskiy HydroCascade after purchasing of additional shares - 100 per cent (remains unchanged).

9.3.2. Approve alienation by way of transferring property of JSC RusHydro in return for additional shares of JSC Sulakskiy HydroCascade according to the list given in Appendix 5, that is intended for electricity generation, whose market value according to the opinion of an independent appraiser is 124,500,000 (one hundred and twenty four million and five hundred thousand) rubles (rounded up).

 

Voting results:

"For" - 8 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, A. V. Sharonov)

Decision made.

 

 

Matter 10: On determination of company's (company's representatives) opinion regarding the issues put on agenda of the Board of Directors' Meetings as well as General Meetings of the company's subsidiaries and affiliates (SA).


10.1. Decision regarding participation (change of participation share) of the company's SA in other organisations.


Decision:

10.1.1.1. Instruct the company's representatives in the Board of Directors of JSC Kolymaenergo to vote "FOR" the following decisions:

10.1.1.1.1. Approve participation (change of the participation chare) of JSC Kolymaenergo in JSC Ust-Srednekanskaya HPP by purchasing additional shares of JSC Ust-Srednekanskaya HPP subject to the following conditions:

- category, type, nominal value; ordinary registered shares with the par value of 1 (one) ruble per share;

- number of acquired shares: 1,252,237,650 (one billion two hundred fifty two million and two hundred and thirty seven thousand and six hundred and fifty) shares; JSC Kolymaenergo is entitled to purchase less shares of JSC Ust-Srednekanskaya HPP, in this case JSC Ust-Srednekanskaya HPP transfers the corresponding number of paid shares into ownership of JSC Kolymaenergo;

- share acquisition price: at additional shares of JSC Ust-Srednekanskaya HPP placement price which is 1 (one) ruble per one additional share (corresponds to a nominal value);

- the form of share payment: property according to Appendix 6 to the present decision, whose market value, according to the opinion of an independent appraiser, amounts to 1,083,384,090 (one billion eighty three million three hundred eighty four thousand and ninety) rubles and property according to Appendix 7 to the present decision, whose market value, according to the opinion of an independent appraiser, amounts to 168,853,560 (one hundred sixty eight million eight hundred fifty three thousand five hundred and sixty) rubles.

10.1.1.1.2. Approve alienation by way of transferring property of JSC Kolymaenergo in return for additional shares of JSC Ust-Srednekanskaya HPP:

- constructions in progress of JSC Ust-Srednekanskaya HPP (according to the list given in Appendix 6 to the present decision), that is intended for electricity generation, whose market value according to the opinion of an independent appraiser is 1,083,384,090 (one billion eighty three million three hundred eighty four thousand and ninety) rubles;

- other property (according to the list of Appendix 7 to the present decision), whose market value according to the opinion of an independent appraiser is 168,853,560 (one hundred sixty eight million eight hundred fifty three thousand five hundred and sixty) rubles.

10.1.1.2. Instruct the company's representatives in the Board of Directors of JSC Kolymaenergo to vote "FOR" inclusion of the following matters into the agenda of the Annual General Shareholders' Meeting of JSC Kolymaenergo:

- Approval of an interested-party transaction.

 

Voting results:

"For" - 9 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (D. S. Akhanov)

"Abstained" - 0

Decision made.

 

Decision:

10.1.2. Defer determination of an opinion regarding participation (change of participation share) of JSC Hydroinvest and JSC HydroOGK in JSC Moscow Regional Institute Hydroproject and LLC SpetsEnergoService to a later date.

 

Voting results:

"For" - 9 (V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (D. S. Akhanov)

"Abstained" - 0

Decision made.


10.2. Determination of the agenda of General Shareholders' Meeting of subsidiaries and affiliates (SA).

 

Decision:

Instruct the company's representatives in the Board of Directors of LLC Index of Energy - HydroOGK to vote "FOR" inclusion of the following matter into the agenda of an Extraordinary General Shareholders' Meeting:

- Determination of fee for company's auditor services.

 

Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 

 

 

Matter 11: Risk register of JSC RusHydro and measures to mitigate risks.


Decision:

Take into consideration JSC RusHydro's register of strategic risks for 2009 and measures to mitigate them (Appendix 8).


Voting results:

"For" - 9 ((V. Yu. Sinyugin, B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (D. S. Akhanov)

"Abstained" - 0

Decision made.



 

Matter 12: Approving the company's transactions:


12.1. Approval of a transaction with JSC GVC Energetiki which is an interested party transaction.


Decision:

12.1.1. Approve the price (monetary appraisal) of ordinary interest bearing notes of JSC GVC Energetiki to be purchased by JSC RusHydro to the amount of 40,000,000 (forty million) rubles 00 kopecks.

12.2.2. Approve conclusion of a sale and purchase contract between JSC RusHydro and JSC GVC Energetiki for two ordinary interest bearing notes of JSC GVC Energetiki being an interested party transaction under the following essential terms:

The Seller: JSC GVC Energetiki.

The Buyer: JSC RusHydro.

Subject of Contract: Two ordinary interest bearing notes of JSC GVC Energetiki with the nominal value of 20,000 000 (twenty million) rubles each and the total nominal value of 40,000,000 (forty million) rubles 00 kopecks with maturity date "after sight but not earlier than 01.07.2009", with interest charges on the principal amount from the date of note issue at the rate of 17 (seventeen) per cent per year, the first note holder is JSC RusHydro.

Contract Price: 40,000,000 (forty million) rubles 00 kopecks.

 

Voting results:

"For" - 7 (B. I.  Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov)

"Against" - 1 (D. S. Akhanov)

"Abstained" - 1 (A. V. Sharonov).

Decision made.

A member of the Board of Directors of JSC RusHydro, V. Yu. Sinyugin, who was RusHydro's Board Chairman within a year preceding a decision and who is not recognised as an independent director, did not take part in voting.

 


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





Chairman of the Board of Directors                                                               V. Yu. Sinyugin


Secretary of the Board of Directors                                                              M. M. Davydov

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