Minutes of 29.12.2010 №116

MINUTES No. 116

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors Meeting
(date and time of vote counting):                                          December 29, 2010, 6.00 p.m.

                                                                                         (Moscow time)

Minutes Dated:                                                                    December 30, 2010

Form of vote:                                                                        absentee vote

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 (Chairman)

                                                                                        A. B. Ballo,

                                                                                        E. P. Volkov,

                                                                                        E. V. Dod,

                                                                                        V. M. Zimin,

                                                                                        B. Yu. Kovalchuk,

                                                                                        V. V. Kudryavy,

                                                                                        G. M. Kurtser,

                                                                                        N. G. Kutyin,

                                                                                        A. B. Malyshev,

                                                                                        M. V. Seliverstova,

                                                                                        R. R. Sharipov


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. Concerning business priorities of the company: Approval of the principal contractual terms of a general contract for reconstruction and modernisation of the Cascade of Kubanskiye HPPs.

2. Approval of the Innovative Development Programme of JSC RusHydro for 2011-2015.

3. Approval of the Provision on the company's Corporate secretary.

4. Approval of the Provision on the Audit Committee under the supervision
of the Board of Directors as amended.

5. Approval of the Internal risk control and management policy of the company.

6. Financing redistribution for the BEMO investment project.

7. Approving the company's transactions:

7.1. Approval of interested-party transactions with JSC Volgogradenergosbyt, JSC ATS.

7.2. Approval of interested-party transactions with JSC FGC UES.

7.3. Approval of an interested-party transaction with JSC SO UES.

8. Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors Meeting and General Shareholders' (participants) Meeting of subsidiaries and affiliates (SA) of the company.

8.1. Determination of opinions on the issues related to participation of JSC Hydroinvest in the authorised capital of JSC Ust-Srednekanskaya HPP.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Concerning business priorities of the company: Approval of the principal contractual terms of a general contract for reconstruction and modernisation of the Cascade of Kubanskiye HPPs.


Decision:

Approve the principal contractual terms of a general contract for reconstruction and modernisation of the Cascade of Kubanskiye HPPs in accordance with an Agreement for the principal contractual terms of a general contract for reconstruction and modernisation of the Cascade of Kubanskiye HPPs signed on 09.12.2010 by JSC RusHydro and a consortium (a number of parties) consisting of ALSTOM HYDRO FRANCE, ALSTOM Limited and JSC OEK (Appendix 1).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 2: Approval of the Innovative Development Programme of JSC RusHydro for 2011-2015.


Decision:

Approve the Innovative Development Programme of JSC RusHydro for 2011-2015 (Appendix 2).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 3: Approval of the Provision on the company's Corporate secretary.


Decision:

3.1. Approve the Provision on the company's Corporate secretary (Appendix 3).

3.2. Elect Mikhail Mikhailovich Davydov as the company's corporate secretary.


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (N. G. Kutyin)

Decision made.

 

Matter 4: Approval of the Provision on the Audit Committee under the supervision
of the Board of Directors as amended.

 

Decision:

Approve the Provision on the Audit Committee under the supervision of JSC RusHydro's Board of Directors as amended (Appendix 4).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 5: Approval of the Internal risk control and management policy of the company.


Decision:

Approve the Internal risk control and management policy of JSC RusHydro as amended (Appendix 5).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 6: Financing redistribution for the BEMO investment project.


Decision:

6.1. Approve reduction of financing volumes by 7,132,200,000 rubles for the BEMO project in 2010 due to extension of the facility commissioning and with regard to further redistribution of corresponding resources for 2011-2013 while updating the Investment Programme of JSC RusHydro within the established procedure in accordance with Appendix 6.

6.2. Introduce amendments to the financing and capital investment plan approved by the Board of Directors on 15.09.2010 (minutes No. 108 dated 17.09.2010) for the fourth quarter in terms of the BEMO project in accordance with Appendix 7.

6.3. Instruct the company's Management Board to take into consideration the financing redistribution of the BEMO project while updating the Investment Programme of JSC RusHydro for 2011 and developing the Investment Programme
of JSC RusHydro for 2012-2014.


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (N. G. Kutyin)

Decision made.

 

Matter 7: Approving the company's transactions:


7.1. Approval of an interested-party transactions with JSC Volgogradenergosbyt and JSC ATS.


Decision:

In accordance with Appendix 8 approve additional agreements on change of deadline for the fulfilment of the obligations under regulated contracts to purchase and sell electricity and capacity and contracts to purchase and sell capacity produced on the generating equipment of nuclear power plants and hydraulic power plants for a period of up to two years, concluded between JSC RusHydro, JSC Volgogradenergosbyt and JSC ATS as interested party transactions.


Voting results:

"For" - 10 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, V. M. Zimin, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.


The following members of JSC RusHydro's Board of Directors did not participate in voting: S. S. Beloborodov, B. Yu. Kovalchuk recognised as transaction interested party, as well as E. V. Dod, who is the Chairman of the company's Management Board and who is not recognised as an independent director.


7.2. Approval of interested-party transactions with JSC FGC UES.

 

Decision:

7.2.1. Approve conclusion of an equipment purchase/sale contract between JSC RusHydro and JSC FGC UES (further on referred to as the Contract) representing an interested party transaction on the following essential terms:

The Contract is concluded so that JSC RusHydro could purchase high frequency processing and communication equipment, relay protection and emergency control systems of the Emelino 500 kV high voltage line installed by JSC FGC UES on the territory of JSC RusHydro's subsidiary - Votkinskaya HPP.

Parties to Contract:

Party 1 - Open Joint Stock company Federal Hydro-Generating company (JSC RusHydro).

Party 2 - Open Joint-Stock Company Federal Grid Company of Unified Energy System (JSC FGC UES).

Subject of Contract:

The Party 2 undertakes to transfer high frequency processing and communication equipment, relay protection and emergency control systems of the Emelino 500 kV high voltage line into the ownership of the Party 1 according to Specification (Appendix No. 1 to the Contract) and the Party 1 undertakes to accept and pay for this equipment within the terms stipulated by the Contract.

Contract Price of the equipment:

The price of equipment amounts to 16,098,897 (sixteen million, ninety-eight thousand, eight hundred ninety-seven) rubles 90 kopecks, including VAT (18 per cent) - 2,455,764 (two million, four hundred and fifty-five thousand, seven hundred and sixty-four) rubles 09 kopecks. The price of equipment unit is set in Specification (Appendix No. 1 to the Contract). The equipment price remains fixed and cannot be altered.

Effective Period of Contract:

The contract comes into force from the date of its signing and is valid until Parties have their duties completed in full.


Voting results:

"For" - 8 (A. B. Ballo, E. P. Volkov, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, M. V. Seliverstova)

"Against" - 0

"Abstained" - 0

Decision made.


The following members of JSC RusHydro's Board of Directors did not participate in voting: S. I. Shmatko, A. B. Malyshev, R. R. Sharipov recognised as transaction interested party, as well as E. V. Dod, who is the Chairman of the company's Management Board and who is not recognised as an independent director.


Decision:

7.2.2. Approve conclusion of an agency contract between JSC RusHydro and JSC FGC UES (further on referred to as the Contract) representing an interested party transaction on the following essential terms:

The Contract is concluded to provide reconstruction and technical upgrading of the outdoor switchgear 330 kV HPP-4 of JSC RusHydro's subsidiary - Cascade of Kubanskiye HPPs (replacement of relay protection and automatic equipment and emergency control systems of 330-12 L HPP-4 - substation Nevinnomyssk) during construction of 500 kV high voltage line Volgogradskaya HPP - Nevinnomyssk with 500 kV substation Nevinnomyssk and connection of 330 kV high voltage line to HPP-4.

Parties to Contract:

Principal - Open Joint Stock company Federal Hydro-Generating company (JSC RusHydro).

Agent - Open Joint-Stock Company Federal Grid Company of Unified Energy System (JSC FGC UES).

Subject of Contract:

The agent undertakes to reconstruct and upgrade the outdoor switchgear of 330 kV HPP-4 a subsidiary of JSC RusHydro - Cascade of Kubanskiye HPPs. And to replace relay protection and automatic equipment and emergency control systems of 330-12 L HPP-4 - substation Nevinnomyssk owned by the Principal on the basis of a right of ownership and the Principal undertakes to pay the Agent the cost of performed works and an agency commission stipulated by the Contract.

Contract Price:

The Contract price (the sum of agency commission) amounts to 842,934 (eight hundred and forty-two thousand, nine hundred and thirty-four) rubles 32 kopecks, including VAT (18 per cent) - 128,583 (one hundred and twenty-eight thousand, five hundred and eighty-three) rubles 20 kopecks.

The cost of works to be carried out by the Agent under the Contract amounts to 42,146,716 (forty-two million, one hundred and forty-six thousand, seven hundred and sixteen) rubles, including VAT (18 per cent) - 6,429,160 (six million, four hundred and twenty-nine thousand, one hundred and sixty) rubles 06 kopecks.

Effective Period of Contract:

The Contract comes into force from the date of its signing and is valid until Parties have their duties completed in full. The contractual terms apply to the parties' relations initiated before its conclusion (from 01.02.2010).


Voting results:


"For" - 8 (A. B. Ballo, E. P. Volkov, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, M. V. Seliverstova)

"Against" - 0

"Abstained" - 0

Decision made.

The following members of JSC RusHydro's Board of Directors did not participate in voting: S. I. Shmatko, A. B. Malyshev, R. R. Sharipov recognised as transaction interested party, as well as E. V. Dod, who is the Chairman of the company's Management Board and who is not recognised as an independent director.



7.3. Approval of an interested-party transaction with JSC SO UES.

 

Decision:

7.3.1. Determine the price of the Contract concluded between JSC RusHydro and JSC SO UES for exchanges of notes which is an interested party transaction, in the amount of 704,885,995 (seven hundred and four million, eight hundred and eighty-five thousand, nine hundred and ninety-five ) rubles 76 kopecks

7.3.2. To approve a notes exchange contract between JSC RusHydro and JSC SO UES representing an interested party transaction, on the following essential terms:

Parties to Contract:

JSC RusHydro, JSC SO UES.

Subject of Contract:

1. JSC RusHydro transfers ordinary non-interest bearing notes of JSC SO UES into ownership of JSC SO UES in the total amount of 704,885,995 (seven hundred and four million, eight hundred and eighty-five thousand, nine hundred and ninety-five ) rubles 76 kopecks in the amount of 3 (three) notes with the following details:


Series, number
of the note

Redemption period

Date of drawing

Place of payment

Note sum, rubles

СО-А No. 030

After sight but not earlier than 31.12.2010

08.09.2009

Moscow

169,877,559.92

СО-А No. 031

After sight but not earlier than 31.12.2010

08.09.2009

Moscow

267,504,217.92

СО-А No. 032

After sight but not earlier than 31.12.2010

08.09.2009

Moscow

267,504,217.92


2. JSC SO UES transfers ordinary notes of JSC SO UES into ownership of JSC RusHydro in the total amount of 704,885,995 (seven hundred and four million, eight


hundred and eighty-five thousand, nine hundred and ninety-five) rubles 76 kopecks in the amount of 3 (three) notes with the following details:


Series, number
of the note

Redemption period

Date of drawing

Place of payment

Note sum, rubles

СО-А No. 039

After sight but not earlier than 01.03.2013

Not later than 28.02.2011

Moscow

169,877,559.92

СО-А No. 040

After sight but not earlier than 01.03.2013

Not later than 28.02.2011

Moscow

267,504,217.92

СО-А No. 041

After sight but not earlier than 01.03.2013

Not later than 28.02.2011

Moscow

267,504,217.92


Contract Price:

704,885,995 (seven hundred and four million, eight hundred and eighty-five thousand, nine hundred and ninety-five) rubles 76 kopecks.


Effective Period of Contract:

The contract comes into force from the moment of its signing by the parties and remains in effect until the full fulfilment of obligations by the parties stipulated by the contract.


Voting results:

"For" - 9 (A. B. Ballo, E. P. Volkov, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova)

"Against" - 0

"Abstained" - 0


Decision made.


The following members of JSC RusHydro's Board of Directors did not participate in voting: S. I. Shmatko, S. S. Beloborodov, R. R. Sharipov recognised as transaction interested parties, as well as E. V. Dod, who is the Chairman of the company's Management Board and who is not recognised as an independent director.


Matter 8: Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors Meeting and General Shareholders' (participants) Meeting of subsidiaries and affiliates (SA) of the company.


8.1. Determination of opinions on the issue related to participation of JSC Hydroinvest in the authorised capital of JSC Ust-Srednekanskaya HPP.


Decision:

Instruct JSC RusHydro's representatives in the management bodies of JSC Hydroinvest to vote FOR making the following decision:

Approve participation of JSC RusHydro in JSC Ust-Srednekanskaya HPP by purchasing shares owned by JSC Ust-Srednekanskaya HPP on the following terms:

- method of acquisition: based on a share purchase/sale contract concluded between JSC Ust-Srednekanskaya HPP (Seller) and JSC Hydroinvest (Buyer);

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

- number of acquired ordinary shares: 767,959,382 (seven hundred and sixty-seven million, nine hundred and fifty-nine thousand, three hundred and eighty-two) pieces;

- share acquisition price: 1 (one) ruble per 1 (one) ordinary share (corresponding to the face value of share) in the total amount of 767,959,382 (seven hundred and sixty-seven million, nine hundred and fifty-nine thousand, three hundred and eighty-two) rubles;

- the form of share payment: monetary assets;

- JSC Hydroinvest's share in the authorised capital of JSC Ust-Srednekanskaya HPP before share carve-out in compliance with the present decision is zero per cent; JSC Hydroinvest's share in the authorised capital of JSC Ust-Srednekanskaya HPP after share carve-out in compliance with the present decision is 5.06 per cent.


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 1 (N. G. Kutyin)

"Abstained" - 0

Decision made.

 

 



Chairman of the Board of Directors                                   S. I. Shmatko


Secretary of the Board of Directors                                   M. M. Davydov

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