Minutes of 16.05.2008 №54

MINUTES No. 54

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                       May 16, 2008, 6:00 p.m.

                                                                                     (Moscow time)

Minutes Dated:                                                                 May 19, 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. B. Khristenko

                                                                                      A. B. Chubais

                                                                                      B. I. Ayuev

                                                                                      D. A. Askinadze

                                                                                      Y. M. Medvedev

                                                                                      D. V. Ponomarev

                                                                                      A. N. Rappoport

                                                                                      Seppo Remes

                                                                                      V. Yu. Sinyugin

                                                                                      Yu. A. Udaltsov

                                                                                      Ya. M. Urinson

                                                                                      R. Z. Khamitov

                                                                                      David Khern


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. Convening an Extraordinary General Shareholders' Meeting of the company.

2. Recommendations to the General Shareholders' Meeting of the company on the matter of major transactions to be approved.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Convening an Extraordinary General Shareholders' Meeting of the company.

 

Decision:

1.1. Convene an Extraordinary General Shareholders' Meeting of JSC HydroOGK (hereinafter referred to as the company) in the form of an absentee vote (hereinafter referred to as the General Shareholders' Meeting).

1.2. Specify the acceptance end date of filled-in voting ballots for the General Shareholders' Meeting as June 20, 2008.

1.3. Specify a postal address to which the filled-in voting ballots should be sent:

- 105082, Moscow, B. Pochtovaya Str., 34, bld. 8, JSC Central Moscow Depositary.

1.4. Specify the date of compiling the list of individuals entitled to participate in the General Shareholders' Meeting as May 16, 2008.

1.5. Specify the following agenda of the General Shareholder's Meeting:

- Approval a major transaction connected with the conclusion of long-term electricity (capacity) purchase-sale agreements.

1.6. Determine that the following documents shall represent the information (materials) to be provided to individuals entitled to participate in the General Shareholders' Meeting of JSC HydroOGK:

- draft decision of the General Shareholders' Meeting of JSC HydroOGC regarding the agenda matters;

- explanatory note on the matter of a major transaction connected with the conclusion of long-term electricity (capacity) purchase-sale agreements;

- independent appraiser' report;

- an extract from the minutes of the Board of Directors of JSC HydroOGK regarding the price of long-term electricity (capacity) purchase - sale agreements being classified as major transactions.

1.7. Ensure that all individual persons entitled to participate in the General Shareholders' Meeting can be familiarised with the above mentioned information (materials) in the period from May 30, 2008 to June 20, 2008 (inclusive) from 10 a.m. till 6 p.m.(Moscow time) at the following addresses:

- Moscow, Arkhitektora Vlasova Str., 51;

- Moscow, B. Pochtovaya Str., 34, bld. 8, JSC Central Moscow Depositary;

- on the company's website: www.gidroogk.ru.

1.8. Approve the form and text of the announcement for the company's shareholders on running of the General Shareholders' Meeting of JSC HydroOGK (Appendix 1).

1.9. Publish the announcement on running of the General Shareholder's Meeting of JSC HydroOGK in Vedomosti newspaper place it on the company's web-site: www.gidroogk.ru befor May 21, 2008.

1.10. Approve the form and text of the voting ballot for the General Shareholders' Meeting of JSC HydroOGK (Appendix 2).

1.11. Ensure that the voting ballots for the agenda matters of the General Shareholders' Meeting of JSC HydroOGK are sent by registered mail or handed over against signature to each individual included on the list of individuals entitled to participate in the General Shareholders' Meeting before May 30, 2008.

1.12. Elect Yuliya Vsevolodovna Smirnova, the Head of the Corporate Management Department of JSC HydroOGK, to be Secretary at the General Shareholders' Meeting of JSC HydroOGK.


Voting results:

"For" - 10 (V. B. Khristenko, D. A. Askinadze, 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" - 3 (A. B. Chubais, B. I. Ayuev, Ya. M. Urinson).

Decision made.



Matter 2: Recommendations to the General Shareholders' Meeting of the company on the matter of major transactions to be approved.


Draft decision proposition:

2. As part of approval of a major transaction related to the conclusion of long-term electricity (capacity) purchase-sale agreements on the basis of a decision made by the Board of Directors of JSC RAO UES of Russia dated 27.12.2007 (minutes No. 269) and in the context of implemented measures to optimise contractual terms.

2.1. Submit the following draft decision for consideration by the company's General Shareholders' Meeting:

"Approve long-term electricity and capacity purchase-sale agreements concluded between JSC HydroOGK and CJSC MAREM+ (or under an agreement concluded between JSC HydroOGK and CJSC RUSAL Global Management B.V. - between JSC HydroOGK and the other company that at the moment of entering into agreements has registered the group supply points in relation to electricity receiving equipment owned at the moment of making the present decision by JSC RUSAL Novokuznetsk, JSC RUSAL Sayanogorsk on the basis of right of ownership or any other lawful ground including the group supply points of the Sayanogorsk Aluminium Smelter and the Khakas Aluminium Smelter until the above mentioned group supply points are registered by CJSC MAREM+ ) (hereinafter referred to as the Agreements) on the basis of Principal Terms and Conditions outlined in the scheme and the electricity (capacity) purchase-sale agreements to be concluded between the Buyer and the Seller in accordance with Appendix 2 to the present resolution (hereinafter referred to as the Scheme and Principal Conditions) including the price determined on the basis of price calculation formula according to Appendix 1 (electricity (capacity) pricing conditions under bridge agreements and free bilateral contracts (FBC), as interconnected transactions being a major transaction in the aggregate, the subject of which is property whose value is from 25 to 50 per cent of the balance sheet assets of JSC HydroOGK. Ensure that the total cost of electricity and capacity alienated by JSC HydroOGK under the Agreements during their valid term shall not exceed 49.99 per cent of the balance sheet assets of JSC HydroOGK".


2.2. If the General Shareholders' Meeting of JSC HydroOGK resolves to approve the above mentioned Agreements"

2.2.1. Instruct the Management Board of JSC HydroOGK to enter into bridging and long-term agreements in accordance with the Scheme and Principal Conditions related to purchase-sale of electricity (capacity) to be concluded between suppliers and buyers (hereinafter referred to as The Scheme and Principal Conditions) (Appendix 2).

2.2.2. The Management Board of JSC HydroOGK:

2.2.2.1. Continue negotiations with representatives of CJSC RUSAL Global Management B.V. (companies incorporated into the group of entities of CJSC RUSAL Global Management B.V.) aimed at:

2.2.2.1.1. Further structuring the contractual scheme;

2.2.2.1.2. Developing draft bridging and long-term electricity (capacity) purchase-sale agreements in accordance with the scheme and principal conditions;

2.2.2.1.3. Optimising economic effects for JSC HydroOGK.

2.2.2.2. Submit for consideration by the Board of Directors the essential terms and conditions of a partnership agreement and option contracts to be concluded with shareholders of CJSC MAREM+ to purchase a block of shares of CJSC MAREM+ by subsidiaries and affiliates of JSC HydroOGK as well as information about draft agreements that are to be concluded in accordance with the present resolution as well as to ensure that the Board of Directors of JSC HydroOGK duly considers issues related to the acquisition of shares of CJSC MAREM+ by subsidiaries and affiliates of JSC HydroOGK.

2.2.3. Consider it possible that subsidiaries and affiliates of JSC HydroOGK - a sales company (instead of JSC HydroOGK) can enter into agreements on terms and conditions outlined in Appendix 2, in accordance with decisions made by the management bodies of JSC HydroOGK in accordance with provisions and procedures provided for by the legislation of the Russian Federation and the Articles of Association of JSC HydroOGK.


Voting results:

"For" - 6 (V. B. Khristenko, D. V. Ponomarev, A. N. Rappoport, V. Yu. Sinyugin, Yu. A. Udaltsov, David Khern).

"Against" - 4 (Y. M. Medvedev, R. Z. Khamitov, D. A. Askinadze, Seppo Remes).

"Abstained" - 3 (A. B. Chubais, B. I. Ayuev, Ya. M. Urinson).

No 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                                   M. M. Davydov

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