Minutes of 19.05.2008 №55

MINUTES No. 55

OF THE BOARD OF DIRECTORS MEETING


Date and time of vote counting:                                             May 19, 2008, 7:00 p.m.

                                                                                         (Moscow time)

Form of vote:                                                                       Collective attendance 

Site of vote counting:                                                           Moscow, Kitaygorodskiy Lane, 7

Number of elected members of the Board of Directors               13

Members of the Board of Directors present at the meeting:        Ya. M. Urinson,

                                                                                          B. I. Ayuev, 

                                                                                          D. V. Ponomarev,

                                                                                          Seppo Remes,

                                                                                          Yu. A. Udaltsov,

                                                                                          R. Z. Khamitov,

                                                                                          David Khern


A written opinion (voting) on the issues of the meeting agenda was provided by the following members of the Board of Directors, V. B. Khristenko, D. A. Askinadze, Yu. M. Medvedev, V. Yu. Sinyugin.


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.

Chairman of the Board of Directors of JSC HydroOGK V. B. Khristenko was absent.

Members of the Board of Directors present at the meeting resolved to place the functions of Chairman of the Board of Directors on a Member of the Board of Directors Ya. M. Urinson ("For" -B. I. Ayuev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, Yu. A. Udaltsov, R. Z. Khamitov, David Khern; "Against" - none; "Abstained" - none).


AGENDA:


1. Approval of the report on implementation of the company's business-plan for 2007 (including a report on implementation of the Investment Programme for 2007).

2. Approval of the company's updated annual KPI values for 2008.

3. Approval of the company's business-plan for 2008 (including the Investment Programme for 2008).

4. Approval of the Provision on the company's dividend policy.

5. Participation of the company in OOR Russian Union of Industrialists and Entrepreneurs.


RESULTS OF VOTING ON AGENDA:


Matter 1: Approval of the report on implementation of the company's business-plan for 2007 (including a report on implementation of the Investment Programme for 2007).


Decision:

Approve the report on implementation of JSC HydroOGK's business-plan for 2007 (including the report on implementation of JSC HydroOGK's Investment Programme for 2007) (Appendix 1).


Voting results:

"For" - 12 (V. B. Khristenko, Ya. M. Urinson, D. A. Askinadze, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, V. Yu. Sinyugin, Yu. A. Udaltsov, R. Z. Khamitov, David Khern)

"Against" - 0

"Abstained" - 0

Decision made.



Matter 2: Approval of the company's updated annual KPI values for 2008.


Decision:

2. Approve the updated values:

2.1. The annual key performance indicators (KPI) of JSC HydroOGK for 2008 - "Return on equity" (ROE) in accordance with Appendix 2.


2.2. The annual indicative performance indicators of JSC HydroOGK for 2008 - "Limit fixed cost per MW of installed capacity as of the beginning of the year, thousand rubles/MW" in accordance with Appendix 2.


Voting results:

"For" - 12 (V. B. Khristenko, Ya. M. Urinson, D. A. Askinadze, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, V. Yu. Sinyugin, Yu. A. Udaltsov, R. Z. Khamitov, David Khern)

"Against" - 0

"Abstained" - 0

Decision made.



Matter 3: Approval of the company's business-plan for 2008 (including the Investment Programme for 2008).


Decision:

3.1. Approve JSC HydroOGK's Business-plan for 2008 (including the Investment Programme of JSC HydroOGK for 2008) (Appendix 3 to the present decision).

3.2. Approve the predicted numbers of the business-plan of JSC HydroOGK for 2009-2012, including the Investment programme of JSC HydroOGK for 2009-2012 contained in the business-plan of JSC HydroOGK for 2008.

3.3.1. Take into consideration the measures aimed at enhancing the economic efficiency of JSC Hydro OGK's investment projects including those accepted by the Management Board of JSC HydroOGK in order to implement the decision by the Board of Directors No. 44 dated 14.12.2007 (Appendix 2B to the business plant of JSC HydroOGK for 2008).

3.3.2. Instruct the company's Management Board, in accordance with comments made at the Board of Directors meeting, to refine the Measures aimed enhancing the economic efficiency of JSC HydroOGK's investment project and to submit them for consideration by the Board of Directors.

3.4. Amend the Provision on the company's investment activities (hereinafter referred to as the Provision) approved by a decision of the Board of Directors dated 25.06.2006 (minutes No. 23) as follows:

3.4.1. in clause 6.4.1 of the Provision, the words "IRR (internal rate of return) shall be 10 per cent maximum" shall be amended as follows "IRR shall be 11 per cent maximum";

3.4.2. in clause 6.6.1 of the Provision, the words "discount rate shall be 10 per cent minimum" shall be amended as follows "discount rate shall be 11 per cent minimum".

3.5. Instruct the company's Management Board to submit its propositions for utilizing the reserves of JSC HydroOGK's Investment Programme for 2008 for consideration by the Ministry of Energy of the Russian Federation and the company's Board of Directors.


Voting results:

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

"Against" - 0

"Abstained" - 1 (D. A. Askinadze)

Decision made.



Matter 4: Approval of the Provision on the company's dividend policy.


Decision:

4.1. Approve the Provision on dividend policy of Open Joint Stock Company Federal Hydro-Generating Company (Appendix 4).

4.2. Establish that the decisions made by the company's Board of Directors concerning recommendations for the General Shareholders' Meeting on distribution of the company's net profit to pay out additional (extra) dividends and the amount of additional (extra) dividends are accepted by the company's Board of Directors on the basis of analysis of the company's financial standing and sufficient cash flow for dividend payout.


Voting results:

"For" - 11 (V. B. Khristenko, Ya. M. Urinson, D. A. Askinadze, B. I. Ayuev, Yu. M Medvedev., D. V. Ponomarev, A. N. Rappoport, V. Yu. Sinyugin, Yu. A. Udaltsov, R. Z. Khamitov, David Khern)

"Against" - 0

"Abstained" - 1 (Seppo Remes)

Decision made.



Matter 5: Participation of the company in OOR Russian Union of Industrialists and Entrepreneurs.


Decision:

Approve participation of JSC HydroPGK in the All-Russian employers' association and the Russian Union of Industrialists and Entrepreneurs (OPR RSPP) on the following terms:

- an admission fee - 150,000 (one hundred and fifty thousand) rubles;

- an annual admission fee for companies whose representatives are elected to the Management Board of OOR RSPP - 150,000 (one hundred and fifty thousand) rubles;

- method of admission fee payment - monetary assets;

- the Management Board of OOR RSPP establishes the amount and procedure of annual membership fee payment.


Voting results:

"For" - 12 (V. B. Khristenko, Ya. M. Urinson, D. A. Askinadze, B. I. Ayuev, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Seppo Remes, V. Yu. Sinyugin, Yu. A. Udaltsov, R. Z. Khamitov, David Khern)

"Against" - 0

"Abstained" - 0

Decision made.


A written voting by members of the Board of Directors V. B. Khristenko, D. A. Askinadze, Yu. M. Medvedev, V. Yu. Sinyugin is attached.


Chairman of the meeting.


 

 

Member of the Board of Directors                                     Ya. M. Urinson


Secretary of the Board of Directors                                   M. M. Davydov

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