Minutes of 19.11.2010 №111

MINUTES No. 111

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors Meeting
(date and time of vote counting):                                      November 16, 2010, 6.00 p.m.

                                                                                     (Moscow time)

Minutes Dated:                                                                November 19, 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

                                                                                    S. S. Beloborodov

                                                                                    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


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. Updating the company's business plan for 2010.

2. Updating the list of key performance indicators of JSC RusHydro for 2010.

3. Introduction of amendments to the Procedure for key performance indicators calculation and estimation of JSC RusHydro.

4. Maximum cost of services for audit of JSC RusHydro's financial (accounting) statements prepared in compliance with the Russian accounting standards for 2011.

5. Approval of the procedure for selection (accreditation) of appraisers to determine the value of shares, property and other assets of JSC RusHydro and third parties.

6. Welfare assistance.

7. Company's logo.

8. Approving the company's transactions:

8.1. Approval of interested-party transactions.

8.2. Transactions connected with transfer of property without compensation.

9. 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.

9.1. On determination of an opinion regarding the participation of SA of the company in other organisations.

10. Approval of the Procedure of payment of fees and compensations to the members of the Management Board of JSC RusHydro.

RESULTS OF VOTING ON AGENDA:

Matter 1: Updated company's business-plan for 2010.


Decision:

1.1. Approve the company's updated business-plan for 2010 (Appendix 1).

1.2. Approve the updated values of the annual and quarterly key performance indicators (KPI) of the company for 2010 included in the company's business-plan for 2010 (Appendix 2 to the business-plan).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.

 

Matter 2: Updating the list of key performance indicators of JSC RusHydro for 2010.


Decision:

2.1. Introduce amendments to Appendix 1 to the minutes No. 97 of the meeting of JSC RusHydro's Board of Directors dated 11.05.2010, having stated clause 6 as amended in Appendix 2.

2.2. State that the amendments stated in clause 2.1 of the present decision shall come into force for evaluation of the activity of JSC RusHydro effective from the third quarter of 2010.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.

  

Matter 3: Introduction of amendments to the Procedure for key performance indicators calculation and estimation of JSC RusHydro.


Decision:

3.1. Introduce amendments to the Procedure for key performance indicators calculation and estimation of JSC RusHydro, which was approved by decision of JSC RusHydro's Board of Directors (minutes No. 62) on 26.09.2008, taking into account the amendments made according to the decision of JSC RusHydro's Board of Directors (minutes No. 97) on 11.05.2010 according to Appendix 3.

3.2. State that the amendments mentioned in clause 3.1. of the present decision shall come into force when calculating and evaluating KPI specified for JSC RusHydro, starting from striking the balance for the third quarter of 2010.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.

  

Matter 4: Maximum cost of services for audit of JSC RusHydro's financial (accounting) statements prepared in compliance with the Russian accounting standards for 2011.

 

Decision:

Determine maximum cost of services for audit of JSC RusHydro's financial (accounting) statements in accordance with the Russian accounting standards for 2011 to the sum of 15,000,000 (fifteen million) rubles, VAT excluded.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.


Matter 5: Approval of the procedure for selection (accreditation) of appraisers to determine the value of shares, property and other assets of JSC RusHydro and third parties.


Decision:

5.1. Approve the procedure for selection (accreditation) of appraisers to determine the value of shares, property and other assets of JSC RusHydro and third persons where an agreement with an assessor is concluded on behalf of JSC RusHydro (further on referred to as the Procedure for accreditation) in accordance with Appendix 4.

5.2. Extend the effect of the Procedure for accreditation to the cases envisaged by the Articles of Association of the company (subclause 31 clause 12.1 article 12 of the Articles of Association of the company), as well as individual decisions of company's Board of Directors.

5.3. Company's Board of Directors shall ensure compliance with the requirements of the Procedure for accreditation when implementing the appraiser service purchase procedures.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.


COMMERCIAL SECRET COPIES No. 1

Matter 6: Welfare assistance.


Decision:

The text of the resolution contains confidential information.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.

  

Matter 7: Company's logo.


Decision:

Approve the new company's logo (Appendix 6).


Voting results:

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

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Matter 8: Approving the company's transactions:


8.1. Approval of interested-party transactions:

 

Decision:

8.1.1.1. State that the cost of services as per the depositary agreement between JSC RusHydro and Vnesheconombank is determined in compliance with the Rate of commission remuneration for the services provided by Vnesheconombank to legal entities.

8.1.1.2. Approve conclusion of the depositary agreement by the company, which is an interested party transaction, on the following essential terms:

Parties to Contract:

Depositary - Vnesheconombank;

Depositor - JSC RusHydro.

Subject of Contract:

The Depositary shall provide to the Depositor the services on keeping Securities and/or accounting and certification of rights to Securities and transfer to rights to Securities by means of opening and keeping a separate depot account in the name of the Depositor by the Depositary, as well as services on performing transactions on the depositary account on the basis of Depositor's instructions or the instructions of persons authorised by him.

The subject of the Contract is rendering services by the Depositary to the Depositor which contribute to implementation of the Depositor's rights for Securities.

Contract Price:

Price of the services per the depositary contract between JSC RusHydro and Vnesheconombank shall be determined in compliance with the Rate of commission remuneration for the services provided by Vnesheconombank to legal persons.

The Contract shall come into force from the moment of its signing by the parties and shall be valid till December 31 of the year when the Contract was concluded.

Duration of the Contract shall be prolonged automatically for each subsequent calendar year, if none of the Parties claims in the written form its intention to terminate the Contract one month before the date of expiry of the Contract.

Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.


A member of JSC RusHydro's Board of Directors, A. B. Ballo, recognised as an interested party in the transaction, did not take part in voting.

A member of the Board of Directors of JSC RusHydro, E. V. Dod, 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.


Decision:

8.1.2.1. Establish that the sum of non-interest loan provided per the Loan agreement between JSC RusHydro and JSC Ust-Srednekanskaya HPP, which is an interested party transaction, is 1,036,910,000.0 (one billion, thirty-six million, nine hundred and ten thousand) rubles 00 kopecks.

8.1.2.2. To approve conclusion of the loan contract which is an interested party transaction on the following essential terms:

Parties to Contract:

Borrower - JSC Ust-Srendekanskaya HPP;

Lender - JSC RusHydro.

Subject of Contract: The Lender agrees to transfer possession of the amount of money to the Borrower in the amount of the loan sum within the terms established by the contract, and the Borrower shall repay the loan sum to the Lender within term and in procedure established by the contract.

Targeted Use of the Loan Sum: The load is provided to ensure funding of construction of Ust-Srendnekanskaya HPP.

Loan sum: The amount of money transferred to the ownership of the Borrower and subject to repayment equals 1,036,910,000.0 (one billion, thirty-six million, nine hundred and ten thousand) rubles 00 kopecks.

Interest is accrued to the loan sum on the following rate: Interest free (zero per cent).

Terms of Loan Granting: The Loan sum is provided to the Borrower no later than 31.12.2010 in tranches on the basis of a Borrower's request and transferred from the Loaner's bank account to the Borrower's bank account opened in the Bank for Foreign Economic Activity by the details indicated by the Borrower in corresponding requests.

Loan repayment term: The Borrower shall be obliged to repay the Loan sum to the Lender in full amount by 25.12.2011 by way of money transfer to the Lender's bank account.

Terms of Pre-Term Repayment: Pre-term full or partial loan repayment shall be allowed.

Loan Contract Validity Period: the contract shall enter into force from the moment of its signing by the parties and shall remain valid until complete fulfilment of obligations undertaken by the parties according to the present contract.


Voting results:

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

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)


Decision made.

A member of the Board of Directors of JSC RusHydro, E. V. Dod, 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.


8.2. Transactions connected with transfer of property without compensation.

 

Decision:

8.2.1. Approve the conclusion of a contract of transfer of property without compensation (hereinafter referred to as the contract) between JSC RusHydro and Ministry of Property Relations of the Amur Region acting in favour of the Amur Region, the subject of which is transfer of property (property rights) without compensation to the third parties on the following terms.

Parties to Contract:

Party-1 - JSC RusHydro.

Party-2 - Ministry of Property Relations of the Amur Region acting in favour of the Amur Region in the person of L. I. Belyaeva, Minister of Property Relations of the region, acting on the basis of Provision on the Ministry of Property Relations of the Amur Region acting in favour of the Amur Region approved by Decree No. 148 of the Governor of the Amur Region dated 04.04.2008, and office rights.

Subject of Contract:

The Party-1 agrees that it shall transfer the following immovable property to the possession of the Amur Region without compensation, and the Party-2 shall receive the immovable property: Access route to the urban-type settlement Talakan from Amur motorway (section of regional significance km 0 + 000 - km 46 + 100), length 46,100 m, address: Amur Region, Bureyskiy District.

The transferred property is beneficially owned by Party-1 which fact is confirmed by the certificate of the state registration of right: series 28 AA number 463503, dated 02.11.2010, issued by the Administration of the federal agency of official registration, cadastre and cartography of the Amur Region; about which a record was made in the Single State Land and Property Registry on 02.11.2010: 28-28-03/007/2010-367.

Balance Value:

Balance value of the transferred immovable property as of 02.11.2010:

2,514,457,658 (two billion five hundred and fourteen million four hundred and fifty-seven thousand six hundred and fifty-eight) rubles 13 kopecks.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.


Decision:

8.2.2. Approve conclusion of the contract for transfer of property without compensation (hereinafter referred to as contract) between JSC RusHydro and Municipal unit of workers' settlement (urban-type settlement) of Talakan, the subject of which if transfer of property (property rights) without compensation to the third parties on the following terms.

Party-1 - JSC RusHydro.

Party-2 - Municipal unit of workers' settlement (urban-type settlement) of Talakan in the person of N. N. Trukhina, Head of Municipal unit of workers' settlement (urban-type settlement) of Talakan, acting by virtue of the Articles of Association.

Subject of Contract:

Party-1 agrees that it shall transfer the following immovable property without compensation to the urban-type settlement of Talakan, and Party-2 shall receive it according to the terms of the present contract: Access route to the urban-type settlement Talakan from Amur motorway (section of regional significance km 46 + 100 - km 51 + 040), length 4,940 m, address: Amur Region, Bureyskiy District.

The transferred property is beneficially owned by Party-1 which fact is confirmed by the certificate of the state registration of right: series 28 AA number 463502, dated 02.11.2010, issued by the Administration of the federal agency of official registration, cadastre and cartography of the Amur Region; about which a record was made in the Single State Land and Property Registry on 02.11.2010: 28-28-03/007/2010-366.

Balance Value:  

Balance value of the transferred immovable property as of 02.11.2010:

253,901,835 (two hundred and fifty-three million, nine hundred and one thousand, eight hundred and thirty-five) rubles 76 kopecks.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 0

Decision made.


COMMERCIAL SECRET COPIES No. 1

Matter 9: 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.


9.1. On determination of an opinion regarding the participation of SA of the company in other organisations.


Decision:

The text of the resolution contains confidential information.


Voting results:

"For" - 11 (S. I. Shmatko, S. S. Beloborodov, 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 (A. B. Ballo)

Decision made.


Matter 10: Approval of the Procedure of payment of fees and compensations to the members of the Management Board of JSC RusHydro.


Decision:

10.1. Approve of the Procedure for payment of fees and compensation to the members of the Management Board of JSC RusHydro (Appendix 7).

10.2. The following shall be considered to have lost force:

- Regulations for Material Incentives for JSC RusHydro Top Managers approved by Board of Directors of JSC RusHydro on 30.12.2009 (minutes No. 91) and clause 1.4. of the minutes No. 94 of the meeting of the Board of Directors dated 05.04.2010.

- System of dependence of the amount of the official salary of Chairman of Board of Directors of JSC HydroOGK and General Directors of companies associated with the group of companies JSC HydroOGK, approved by the Board of Directors of JSC RusHydro on 24.06.2008, minutes No. 58.

10.3. Empower Sergey Ivanovich Shmatko, Chairman of the Board of Directors of the company, to determine the terms (in accordance with approved Procedure for payment of fees and compensations to the members of the Board of Directors of JSC RusHydro) and sign, on behalf of the company, an additional agreement to the labour contract with Evgeny Vyacheslavovich Dod, Chairman of the company's Management Board.

10.4. Instruct the Chairman of the company's Management Board to bring the labour contracts with the members of the company's Management Board in compliance with Procedure for payment of fees and compensations to the members of JSC RusHydro's Management Board.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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" - 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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