Minutes of 08.06.2009 №78

MINUTES No. 78

OF THE BOARD OF DIRECTORS MEETING

 

Date and time of vote counting:                                        June 8, 2009, 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:      S. I. Shmatko,

                                                                                  A. B. Ballo,

                                                                                  S. S. Beloborodov,

                                                                                  V. S. Belyaev,

                                                                                  B. F. Vainzikher,

                                                                                  E. P. Volkov,

                                                                                  V. I. Danilov-Danilyan,

                                                                                  V. A. Zubakin,

                                                                                  S. V. Maslov,

                                                                                  V. V. Tatsy,

                                                                                  S. V. Serebryannikov,

                                                                                  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. Consideration of the report on execution of instructions of the company's Board of Directors for the 2008-2009 corporate year.

2. Consideration of the report of the Chairman of the Strategy Committee on the results of the 2008-2009 corporate year.

3. Consideration of the report of the Chairman of the Audit Committee on the results
of the 2008-2009 corporate year.

4. Consideration of the report by the chairman of the Human Resources and Remuneration Committee on the activity results of the 2008-2009 corporate year.

5. Consideration of the report of the Chairman of the Investments Committee on the results of 2008-2009 corporate year.

6. Approval of the report on execution of key performance indicators of the company for the first quarter of 2009.

7. On Report on fulfilment of the company's insurance coverage programme for the first quarter of 2009.

8. A draft of the standardisation programme in the field of technical regulation for 2009-2011.

9. Inclusion of amendments to the standard collective agreement of the branches.

10. Participation of the company in JSC Far East Wind Power Plant.

11. On holding more than one office, by members of the company's Management Board, in the management bodies of other organisations.

12. Approval of the company's transactions.

12.1. On approval of the transaction with JSC MC HydroOGC is an interested party transaction.

12.2. On approval of an interested-party transaction with JSC Zaramagskiye HPPs.

13. 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).

13.1. Determination of agenda for the general stockholders' meetings of subsidiaries and affiliates.

13.2. Determination of the position relating to change of JSC Chirkeigesstroy's share participation in the authorised capital of JSC UGK TGK-8.

 

RESULTS OF VOTING ON AGENDA:

 

Matter 1: Consideration of the report on execution of instructions of the company's Board of Directors for the 2008-2009 corporate year.


Decision:

Take note of the Report on execution of instructions of JSC RusHydro's Board of Directors for the 2008-2009 corporate year (Appendix 1).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.


Matter 2: Consideration of the report of the Chairman of the Strategy Committee on the results of the 2008-2009 corporate year.

 

Decision:

Take note of the Report on results of the Strategy Committee' activities for 2008-2009 corporate year (Appendix 2).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.

Matter 3: Consideration of the report of the Chairman of the Audit Committee on the results of the 2008-2009 corporate year.


Decision:

Take note of the Report of the Сhairman of the Audit Committee on results of the 2008-2009 corporate year (Appendix 3).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.


Matter 4: Consideration of the report by the Chairman of the Human Resources and Remuneration Committee on the activity results of the 2008-2009 corporate year.


Decision:

Take note of the Report on the activity results of the Human Resources and Remuneration Committee of 2008-2009 corporate year (Appendix 4).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.

 

Matter 5: Consideration of the report of the Chairman of the Investments Committee on the results of 2008-2009 corporate year.


Decision:

Take note of the Report on activities results of the Investment Committee of 2008-2009 corporate year (Appendix 5).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.


Matter 6: Approval of the report on execution of key performance indicators of the company for the first quarter of 2009.

 

Decision:

To approve the report on execution of key performance indicators of JSC RusHydro for the first quarter of 2009 (Appendix 6).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.

 

Matter 7: Report on the implementation of the company's Insurance Coverage Programme for the first quarter of 2009.


Decision:

Take note of the Report on implementation of the Insurance Coverage Programme of JSC RusHydro for the first quarter of 2009 (Appendix 7).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.

  

Matter 8: A draft of the standardisation programme in the field of technical regulation for 2009-2011.


Decision:

Approve implementation of JSC RusHydro's Sstandardisation Programme in the field of technical regulation for 2009-2011 (Appendix 8).


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 2 (S. S. Beloborodov, B. F. Vainzikher).

Decision made.

 

Matter 9: Inclusion of amendments to the standard collective agreement of the branches.


Decision:

9.1. Approve inclusion of amendments to standard collective agreement of the company's Agreement according to Appendix 9.

9.2. The company's Management Board shall ensure confirmation of the SA's collective agreements in line with the standard collective agreement of the company's branches taking into consideration the peculiarities of social and labour relations in separate branches of the company.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin., S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.

  

Matter 10: Participation of the company in JSC Far East Wind Power Plant


Decision:

Approve participation of JSC RusHydro in JSC Far East Wind Power Plant by establishing under the following conditions:

- the authorised capital of JSC Far East Wind Power Plant: 500,000 (five hundred thousand) rubles;

- founder: JSC RusHydro (100 per cent of the authorised capital);

- category, type of shares placed at establishment: ordinary registered shares with nominal value of 1 (one) ruble, the number of the placed shares; 500,000 (five hundred thousand) items;

- the form of payment of the authorised capital: monetary assets;

- the authorised capital payment procedure: Shares of JSC Far East Wind Power Plant are paid during six months as of the date of state registration of JSC Far East Wind Power Plant; at least 50 per cent of shares of JSC Far East Wind Power Plant shall be paid during three months after state registration of JSC Far East Wind Power Plant.


Voting results:

"For" - 12 (Shmatko S.I., Ballo A.B., Belyaev V.S., Vainzikher B.F., Volkov E.P., Danilov-Danilyan V.I., Zubakin V.A., Maslov S.V., Tatsy V.V., Serebryannikov S.V., Khamitov R.Z., Sharonov А.V.).

"Against" - 0.

"Abstained" - 1 (Beloborodov S.S.).

Decision made.

  

Matter 11: On holding more than one office, by members of the company's Management Board, in the management bodies of other organisations.


Decision:

11.1.     Approve holding of post in the Supervisory Board of the Non-commercial partnership Innovations in the Electricity Energy (NP INVEL), by Sergey Aleksandrovich Yushin, member of JSC RusHydro's Management Board.

11.2.     Approve holding of a post in the Governing Board of Autonomous Non-commercial Organisation International Centre for Stable Energy Development, by Vasily Aleksandrovich Zubakin, member of the Management Board, Deputy Chairman of JSC RusHydro's Management Board.


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan., V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.

 

Matter 12: Approving the company's transactions:


12.1.    On approval of the transaction with JSC MC HydroOGC is an interested party transaction.


Decision:

12.1.1.  Establish that an approximate (plan) cost of the services rendered by JSC MC HydroOGK related to implementation of the operative start-up headquarters at the hydro-power generating facilities of JSC RusHydro in the second to fourth quarters of 2009 amounts to 5,185,699 (five million one hundred and eighty five thousand six hundred and ninety nine) rubles, VAT excluded.

Actual cost of the services rendered by JSC MC HydroOGK is determined in the procedure stipulated in clause 2.3 of the present resolution.

The total cost of the services rendered by JSC MC HydroOGK cannot exceed 2 per cent of the balance sheet value of JSC RusHydro's assets.

12.1.2. To approve conclusion of a fee-based service contract between JSC RusHydro and JSC MC HydroOGC, being an interested party transaction, under the following essential terms:

12.1.2.1. Parties to Contract:

Customer - JSC RusHydro

Executor - JSC MC HydroOGK.

12.1.2.2. Subject of Contract:

The Executor shall render the following services at a charge to the Customer:

-   quarterly control for a timely commissioning of hydro-power generating facilities of the Customer (holding meetings of the operative start-up headquarters) in accordance with the Technical Assignment (appendix to Contract No. 1);

-   implementation of extraordinary operative start-up headquarters in case of breaching or risk of breaching the schedules of works performance at the Customer's hydro-power generating facilities, and the Customer shall accept and pay for the rendered services.

12.1.2.3. Cost of Services:

The actual cost of the Executor's services (Sq) for the reporting period is determined by formula:

Sq = Аq + Kq + (Аq × 0.11), where:

А - plan amount of expenses of the Executor related to services rendered in order to implement operative start-up headquarters at the Customer's hydro-power generating facilities during a reporting period;

K - sum by which the documented expenses of the Executor related to implementation of operative start-up headquarters expenses during a reporting period exceed the sum A. In case the sum of the documented expenses of the Executor related to implementation of the operative start-up headquarters during a reporting period is less or equals to the sum А, К = 0.

A reporting period under the contract is a quarter.

12.1.2.4. Effective Period of Contract:

The Contract shall come into force as of the date of its signing and shall remain valid up to December 31, 2009.


Voting results:

"For"- 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, A. B. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.

The member of the Board of Directors of JSC RusHydro V. A. Zubakin as a person acting as the sole executive body of the company and in this respect not recognised as an independent director, did not take part in voting.


12.2.    On approval of an interested-party transaction with JSC Zaramagskiye HPPs.

 

Decision:

Approve conclusion of the Agreement on termination of the Equity Participation Contract No. 16-1/15DU dated 22.07.2003 between JSC RusHydro and JSC Zaramagskiye HPPs being an interested party transaction under the following essential conditions:

Agreement Parties:

JSC RusHydro and JSC Zaramagskiye HPPs

Subject of the Agreement:


1. By the moment of the Agreement conclusion JSC RusHydro has obtained all rights under Contract No. 16-1/15DU dated 22.07.2003 from JSC RAO UES of Russia concluded between JSC RAO UES of Russia and JSC Zaramagskiye HPPs (hereinafter referred to as the Contract) in relation to the following:

1.1. Based on the clause 2.1 of the Contract No. 8 dated March 6, 2008, JSC RAO UES of Russia has transferred to JSC Irganayskaya HPP all its rights and obligations under the Contract.

1.2. Based on the deed of merger dated October 30, 2007, approved by resolution of the General Shareholders' Meeting of JSC Irganayskaya HPP (minutes No. 1758pr of the General Shareholders' Meeting of JSC Irganayskaya HPP dated October 16, 2007) by the resolution of the General Shareholders' Meeting of JSC HydroOGK (minutes without a number dated October 16, 2007) JSC Irganayskaya HPP was restructured on July 1, 2008, through merger with JSC HydroOGK with transfer of rights and obligations of the merged company to JSC HydroOGK.

1.3. By the resolution of the General Meeting of JSC HydroOGK's Shareholders (minutes No. 1 dated June 26, 2008) the Articles of Association of JSC RusHydro was approved as amended, it stipulates change of the company's full name from the Open Joint-Stock Company Federal Hydrogeneration Company to the Open Joint-Stock Company RusHydro, abbreviated corporate name change from JSC HydroOGK to JSC RusHydro.

2. The Contract including all supplementary agreements to it is terminated from the moment the Parties sign the Agreement.

3. The Parties have agreed that due to termination of the Contract their relations shall be governed in the following way:

3.1. Open Joint-Stock Company Zaramagskiye HPPs shall fully return monetary assets paid by JSC RAO UES of Russia under the Contract for construction of JSC Zaramagskaya HPP-1 (hereinafter referred to as Facility), to JSC RusHydro without interests accrual. By the moment of the Agreement conclusion JSC Zaramagskiye HPPs have returned to JSC RusHydro the specified monetary assets to the sum of 495,000,000 (four hundred and ninety five million) rubles. The Parties confirm the absence of any mutual obligation initiated under the Contract and due to its termination from the date the Contract is terminated.

3.2. The Facility under construction is the property of JSC Zaramagskiye HPPs. JSC RusHydro shall not be entitled for acquisition of its share in the proprietary right for the Facility.

4. In case the terms of the Agreement differ from the contractual ones, the relations of the Parties shall be governed by the terms of the Agreement.

5. The Agreement comes into force as of the date of its signing by the Parties and applies to the Parties' relations regarding monetary assets return from 09.12.2008.

 

Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, A. B. Sharonov).

"Against" - 0.

"Abstained" - 0.

Decision made.

The member of the Board of Directors of JSC RusHydro V. A. Zubakin as a person acting as the sole executive body of the company and in this respect not recognised as an independent director, did not take part in voting.

  

Matter 13: Defining the company's (representatives of the company) position concerning points of the agendas of the meetings of Boards of Directors and general shareholder meetings of subsidiaries and affiliates of the company:


13.1.1.             Determination of agenda for the General Shareholder's Meetings of subsidiaries and affiliates (SA).


Decision:

Instruct JSC RusHydro's representatives in the Board of Directors of JSC OP Verkhne-Mutnovskaya GeoPP to vote FOR inclusion of the following issue into the agenda of an Extraordinary General Shareholders' Meeting of JSC OP Verkhne-Mutnovskaya GeoPP:

"Approval of the property lease agreement between JSC OP Verkhne-Mutnovskaya GeoPP and JSC Geotherm, which is an interested party transaction".


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.

 

13.1.2. Determination of agenda for the General Shareholder's Meetings of subsidiaries and affiliates (SA).


Decision:

Instruct JSC RusHydro's representatives in the Board of Directors of JSC Nizhne-Zeyskaya HPP and JSC Nizhne-Bureyskaya HPP to vote FOR inclusion of the following issue into the agenda of General Shareholders' Meetings of JSC Nizhne-Zeyskaya HPP and JSC Nizhne-Bureyskaya HPP:

-   On termination of powers of management company JSC MC HydroOGK functioning as the company sole executive body.

 

Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. Z. Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.

13.2.    Determination of the position relating to change of JSC Chirkeigesstroy's share participation in the authorised capital of JSC UGK TGK-8.


Decision:

13.2.1.  Take note of the information on carve-out of the ordinary registered shares of JSC UGK TGK-8 owned by JSC Chirkeigesstroy under the following conditions:

- category, type, nominal value of the carved-out shares: ordinary registered shares with nominal value of 0.01 (zero point zero one) ruble per share;

- quantity of the carved-out shares: 78,054,059 (seventy-eight million, fifty-four thousand, fifty-nine) items;

- share carve-out procedure: in the procedure stipulated by the Article 84.8. of the Federal Law On Joint-Stock Companies (Redemption of Securities of the Open Joint-Stock Company at a request of the person who purchased more than ninety five per cent of shares of the open-joint stock company) in accordance with a requirement of LLC LUKOIL-Volgogradneftepererabotka to redeem ordinary registered shares of JSC UGK TGK-8;

- share carve-out price: at share acquisition price defined in the requirement to redeem shares equal to 0.0398 (zero point zero three nine eight) rubles per one ordinary share;

- method of share payment - monetary assets;

- the share of LLC Chirkeigesstroy in the authorised capital of JSC UGK TGK-8 before share carve-out in compliance with the present decision is 0.0038 per cent; the share of LLC Chirkeigesstroy in the authorised capital of JSC UGK TGK-8 after share carve-out in compliance with the present decision is zero per cent.

13.2.2.  Instruct JSC RusHydro's representatives in the Board of Directors of JSC Chirkeigesstroy to vote FOR making the following decision on shares carve-out of JSC UGK TGK-8, defined by the current resolution.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, V. S. Belyaev, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, V. V. Tatsy, S. V. Serebryannikov, R. . Khamitov, А. V. Sharonov).

"Against" - 0.

"Abstained" - 1 (S. S. Beloborodov).

Decision made.


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





Chairman of the Board of Directors                                                               S. I. Shmatko


Secretary of the Board of Directors                                                               M. M. Davydov

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