Minutes of 18.08.2008 №61

MINUTES No. 61

OF THE BOARD OF DIRECTORS MEETING


Date and time of vote counting:                                          August 18, 2008, 6.00 p.m.

                                                                                      (Moscow time)

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

                                                                                        Yu. M. Medvedev

                                                                                        D. V. Ponomarev

                                                                                        A. N. Rappoport

                                                                                        Seppo Remes

                                                                                        Ya. M. Urinson

                                                                                        R. Z. Khamitov

                                                                                        V. B. Khristenko

                                                                                        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. Identification of the company's priority areas of activity; Approval of the company energy saving programme in order to implement the order of the President of the Russian Federation dated 04.06.2008 No. 889 On some measures to improve energy and ecological efficiency of the Russian Economy.

2. Approving the company's internal documents:

2.1. Approving JSC RusHydro's Standard Business planning system.

2.2. Approving JSC RusHydro's Standard Key performance indicators.

2.3. Announcing the Provision on the company's cash flow control invalid.

2.4. Announcing the company's dividend policy standard in relation to its subsidiaries and affiliates invalid.

3. Approving the list of key performance indicators (KPIs) of the company for 2009.

4. Amending the standard collective agreement.

5. Determination of fee for company's auditor services.

6. 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).

6.1. Determination of an opinion regarding additional issue of the company's SA shares.

6.2. Defining the position on the matters related to encumbrance of shares in the authorised capital of the entities in which SA participate.


RESULTS OF VOTING ON AGENDA:


Matter 1: Identification of the company's priority areas of activity; Approval of the company energy saving programme in order to implement the order of the President of the Russian Federation dated 04.06.2008 No. 889 On some measures to improve energy and ecological efficiency of the Russian Economy.


Decision:

Approve energy saving programme of JSC RusHydro for 2008-2012 (Appendix 1).


Voting results:

"For" - 11 (S. V. Yuinyugin, D. S. Akhanov, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Ya. M. Urinson, R. Z. Khamitov, V. B. Khristenko, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.



Matter 2: Approving the company's internal documents:


2.1. Approving JSC RusHydro's Standard Business planning system.


Decision:

Approve JSC RusHydro's Standard Business planning system (Appendix 2).


Voting results:

"For" - 11 (S. V. Yuinyugin, D. S. Akhanov, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Ya. M. Urinson, R. Z. Khamitov, V. B. Khristenko, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


2.2. Approving JSC RusHydro's Standard Key performance indicators.


Decision:

2.2.1. Approve JSC RusHydro's Standard Key performance indicators (hereinafter referred to as the standard) according to Appendix 3.

2.2.2. Announce the KPI development and implementation standard of JSC RusHydro's SA, approved by a decision of the Board of Directors of the company No. 18 dated 10.04.2006, invalid.

2.2.3. The company's Management Board is to bring the company's internal documents in line with the standard.


Voting results:

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

"Against" - 1 (Yu. M. Medvedev)

"Abstained" - 0

Decision made.


2.3. Announcing the Provision on the company's cash flow control invalid.


Decision:

Announce the provision on the company's cash flow control, approved by a decision of the Board of Directors dated 20.02.2007 (minutes No. 29), invalid.


Voting results:

"For" - 11 (S. V. Yuinyugin, D. S. Akhanov, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Ya. M. Urinson, R. Z. Khamitov, V. B. Khristenko, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


2.4. Announcing the company's dividend policy standard in relation to its subsidiaries and affiliates invalid.


Decision:

Announce the company's dividend policy standard for subsidiaries and affiliates, approved by a decision of the Board of Directors of JSC HydroOGK dated 21.02.2006 (minutes No. 15), invalid.


Voting results:

"For" - 11 (Sinyugin V.Yu., Akhanov D.S., Ayuev B.I., Medvedev Yu.M., Ponomarev D.V., Rappoport A.N., Seppo Remes, Urinson Ya.M., Khamitov R.Z., Khristenko V.B., Sharonov A.V.)

"Against" - 0

"Abstained" - 0

Decision made.




Matter 3: Approving the list of key performance indicators (KPIs) of the company for 2009.


Decision:

Approve the company's KPIs for 2009 (Appendix 4).


Voting results:

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

"Against" - 1 (Yu. M. Medvedev)

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

Decision made.




Matter 4: Amending the standard collective agreement.


Decision:

4.1. Approve the amended standard collective agreement according to Appendix 5.

4.2. The company's Management Board is to bring the SA's collective agreements in line with the company's standard collective agreement taking into consideration the peculiarities of social and labour relations in separate branches of the company.


Voting results:

"For" - 11 (S. V. Yuinyugin, D. S. Akhanov, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Ya. M. Urinson, R. Z. Khamitov, V. B. Khristenko, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 



Matter 5: Determination of fee for company's auditor services.


Decision:

5.1. Define the cost of the services of the company's auditor for 2008 to the amount of 71,000,000 (seventy one million) rubles (excluding VAT).

5.2. The Management Board of the company is to conclude a contract with the company's auditor before 18.09.2008.


Voting results:

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

"Against" - 0


"Abstained" - 1 (V. B. Khristenko)

Decision made.




Matter 6: 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).


6.1. Determination of an opinion regarding additional issue of the company's SA shares.


Decision:

6.1.1.1. Instruct the company's representatives in the Board of Directors of JSC B. E. Vedeneev VNIIG to vote "FOR" inclusion of the following matters into the agenda of the annual General Shareholders' Meeting of JSC B. E. Vedeneev VNIIG:

- 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 in the company's authorised capital by offering additional shares.

6.1.1.2. Instruct the company's representatives in the General Shareholders' Meeting of JSC B. E. Vedeneev VNIIG 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:

- determine the limit quantity of declared ordinary registered shares of JSC B. E. Vedeneev VNIIG to the amount of 350,000 (three hundred and fifty thousand) shares with nominal value of 100 (one hundred) rubles each for the total amount of 35,000,000 (thirty five million) rubles;

- ordinary registered shares declared by JSC B. E. Vedeneev VNIIG to be released provide their holders with rights outlined in clause 6.2 of the Articles of Association of JSC B. E. Vedeneev VNIIG.

6.1.1.3. Instruct the company's representatives in the General Shareholders' Meeting of JSC B.E. Vedeneev VNIIG to vote "FOR" the following decision making in relation to "An increase of the authorised capital of JSC B.E. Vedeneev VNIIG by offering additional shares":

- increase the authorised capital of JSC B. E. Vedeneev VNIIG by offering additional ordinary registered shares to the number of 350,000 (three hundred and fifty thousand) shares with nominal value of 100 (one hundred) rubles each to the total amount of 35,000,000 (thirty five million) rubles;

- method of offering: private subscription, a group of persons whom additional shares are assumed to be offered - JSC RusHydro;

- share offering price: share offering price is the price determined by the Board of Directors of JSC B. E. Vedeneev VNIIG in accordance with articles 36, 77 of the Federal Law on Joint-Stock Companies based on the opinion of an independent appraiser, but not less than their nominal value;

- the form of share payment: monetary assets;

- the order of share payment. shares shall be paid at their placement in full.


Voting results:

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

"Against" - 0

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

Decision made.


Decision:

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

- 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;

6.1.2.2. Instruct the company's representatives in the General Shareholders' Meeting of JSC Sulakskiy HydroCascade 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:

- determine the limit quantity of declared ordinary registered shares of JSC Sulakskiy HydroCascade to the amount of 8,000,000,000 (eight billion) shares with nominal value of 1 (one) ruble each for the total amount of 8,000,000,000 (eight billion) rubles;

- ordinary registered shares declared by JSC Sulakskiy HydroCascade to be released provide their holders with rights stipulated in clause 6.2 of the Article of Association of JSC Sulakskiy HydroCascade.

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

- increase the authorised capital of JSC Sulakskiy HydroCascade by offering additional ordinary registered shares to the amount of 8,000,000,000 (eight billion) shares with nominal value of 1 (one) ruble each for the total amount of 8,000,000,000 (eight billion) rubles;

- method of offering: method of offering - private subscription, a group of persons among which additional shares are assumed to be placed is the Russian Federation represented by the authorised state body;

- share offering price (including that for the persons put in the list of persons having the pre-emptive right to purchase additional shares): at a price determined by the Board of Directors of JSC Sulakskiy HydroCascade in accordance with articles 36, 77 of the Federal Law On Joint-Stock Companies based on the opinion of an independent appraiser, but not less than their nominal value;

- the form of share payment: monetary resources, hydraulic facilities; movable and immovable property that is intended for production, electricity sales, movable and immovable property that is intended for construction, installation and commissioning works, intangible assets, constructions in progress that are intended for electricity generation and sales, any other movable and immovable property that is required to perform ordinary business activities of JSC Sulakskiy HydroCascade, not directly connected with electricity generation and sales;

- the order of share payment: shares shall be paid at their placement in full.


Voting results:

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

"Against" - 0

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

Decision made.


Decision:

6.1.3.1. Instruct the company's representatives in the Board of Directors of JSC Malaya Mezenskaya TPP to vote "FOR" inclusion of the following matters into the agenda of the annual General Shareholders' Meeting of JSC Malaya Mezenskaya TPP:

- 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;

6.1.3.2. Instruct the company's representatives in the General Shareholders' Meeting of Malaya Mezenskaya TPP 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:

- to determine the limit quantity of declared ordinary registered shares of JSC Malaya Mezenskaya TPP in the amount of 5,500,000,000 (five billion five hundred million) pieces with nominal value of 1 (one) ruble each for the total amount of 5,500,000,000 (five billion five hundred million) rubles;

- ordinary registered shares declared by JSC Malaya Mezenskaya TPP to be released provide their holders with rights stipulated in clause 6.2 of Articles of Association of JSC Malaya Mezenskaya TPP.

6.1.3.3. Instruct the company's representative in the General Shareholders' Meeting of JSC Malaya Mezenskaya TPP to vote "FOR" the following decision making in relation to an increase of the authorised capital of JSC Malaya Mezenskaya TPP by offering additional shares:

- determine the limit quantity of declared ordinary registered shares of JSC Malaya Mezenskaya TPP to the amount of 5,500,000,000 (five billion, five hundred million) pieces with nominal value of 1 (one) ruble each for the total amount of 5,500,000,000 (five billion five hundred million) rubles;

- method of offering: private subscription, a group of persons whom additional shares are assumed to be offered - JSC RusHydro;

- share offering price (including that for the persons put in the list of persons having the pre-emptive right to purchase additional shares): 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 based on the opinion of an independent appraiser, but not less than their nominal value;

- the form of share payment: monetary assets;

- the order of share payment: shares shall be paid at their placement in full.


Voting results:

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

"Against" - 0

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

Decision made.

 

Decision:

6.1.4. Defer consideration of the issue to a later date.


Voting results:

"For" - 9 (S. V. Yuinyugin, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, R. Z. Khamitov, V. B. Khristenko, A. V. Sharonov)

"Against" - 1 (Ya. M. Urinson)

"Abstained" - 0

Decision made.

D. S. Akhanov did not take part in voting on the matter.


6.2. Defining the position on the matters related to encumbrance of shares in the authorised capital of the entities in which SA participate.


Decision:

6.2. Instruct the company's representatives in the management bodies of the company's subsidiaries and affiliates (SA) to vote "FOR" the agenda item on encumbrance of shares (stocks in the authorised capitals) of the entities in which the company participates:

- making a decision to pledge shares (stocks in the authorised capital) of the entities owned by the SA to JSC RusHydro;

- making a decision to transfer shares (stocks in the authorised capital) of the entities in which the SA participate into JSC RusHydro's management trust.


Voting results:

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

"Against" - 0

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

Decision made.



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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