Minutes of 15.10.2010 №109

MINUTES No. 109

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                      October 15, 2010, 6.00 p.m.

                                                                                     (Moscow time)

Minutes Dated:                                                                October 15, 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,

                                                                                    S. S. Beloborodov,

                                                                                    E. P. Volkov,

                                                                                    E. V. Dod,

                                                                                    B. Yu. Kovalchuk,

                                                                                    V. V. Kudryavy,

                                                                                    G. M. Kurtser,

                                                                                    A. B. Malyshev,

                                                                                    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. Implementation of the company's Business Plan for the first half of 2010 (including a report on the Investment Programme implementation for the first half of 2010).

2. Decide the company's procurement policy.

3. Approval of updated non-core assets register.

4. Approval of the company's transactions.

4.1. Approval of the transactions with CJSC APBE which are an interested party transactions.

5. Election of the secretary of Extraordinary General Shareholders' Meeting of the company.

6. Approval of JSC RusHydro's Investment Programme for 2011-2013.

7. Approval of the company's Registrar and contract terms with him.

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


RESULTS OF VOTING ON AGENDA:


Matter 1: Implementation of the company's Business Plan for the first half of 2010 (including a report on the Investment Programme implementation for the first half of 2010).


Decision:

1.1. To take note of the intermediate implementation results of JSC RusHydro's Business plan for 2010 with due account of the first half of 2010 (including the Investment Programme implementation report for the first half of 2010) (Appendix 1).

1.2. Evaluate the activity of JSC RusHydro on implementation of the investment programme in the first half of the year as satisfactory.

1.3. Company's Management Board shall ensure taking measures on increasing the speed of execution of the investment programme plan. The results of the measures taken shall be submitted to the company's Board of Directors within the scope of the reports on execution of the investment programme of JSC RusHydro for the subsequent reporting periods.

1.4. Company's Management Board shall ensure taking measures on increasing the speed of execution of the procurement plans under investment activity. The results of the measures taken to be submitted to the company's Board of Directors within the scope of the reports on execution of the Investment Programme of JSC  RusHydro for the subsequent reporting periods.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0


Decision made.


Matter 2: Decide the company's procurement policy.


Decision:

2.1. The Provision on procedure of performing scheduled purchase of products for the needs of JSC RusHydro approved by decision of company's Board of Directors (minutes No. 59 of 16.07.2008), shall be considered to have lost its force.

2.2. To approve the Provision on the procedure of performing scheduled purchase of products for the needs of JSC RusHydro as amended (Appendix 2).

2.3. To state that:

2.3.1. The provision on procedure for performing scheduled purchase of production for the needs of JSC RusHydro is subject to application for the purchases for the needs of JSC RusHydro, in respect of which the purchase documentation has been approved after the date of making the present decision by the Board of Directors.

2.3.2. Provision on the procedure for performing scheduled purchase of production for the needs of JSC RusHydro approved by a decision of the company's Board of Directors (minutes No. 59 of 16.07.2008) is subject to application for the purchases for the needs of JSC RusHydro, in respect of which the purchase documentation has been approved before the date of making the present decision.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0


Decision made.

  

Matter 3: Approval of updated non-core assets register of the company.


Decision:

Introduce amendments in the Register of non-core assets of the company approved by a decision of the company's Board of Directors (minutes No. 97 dated 11.05.2010), in accordance with Appendix 3.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0


Decision made.


Matter 4: Approval of the company's transactions.


4.1. Approval of the transactions with CJSC APBE which are an interested party transactions.


Decision:

4.1.1.1. Determine the price for information services for information and analytical support of development and explanation of the Investment Programme of JSC RusHydro by the agreement between JSC RusHydro and CJSC APBE in the amount of 9,283,100 (nine million, two hundred and eighty-three thousand, one hundred) rubles 00 kopecks, including VAT at the rate of 18 per cent in the amount of 1,416,066 (one million, four hundred and sixteen thousand, sixty-six) rubles 10 kopecks according to the tender of CJSC APBE which has been acknowledged the winner of the tender conducted by JSC RusHydro.

4.1.1.2. Approve conclusion of the contract for providing information services on "Information and analytical support of development and explanation of the Investment Programme of JSC RusHydro between JSC RusHydro and CJSC APBE, which is an interested party transaction, on the following essential terms:

Parties to Contract:

Customer - JSC RusHydro;

Executor - CJSC APBE.

Subject of Contract: according to the terms of the contract, the Executor agrees, in compliance with technical requirements for providing of services, that he shall provide information services on "Information and analytical support of development and explanation of the investment programme of JSC RusHydro", and Customer agrees that he shall pay for the services provided.

9,283,100 (nine million, two hundred and eighty-three thousand, one hundred) rubles 00 kopecks, including VAT at the rate of 18 per cent in the amount of 1,416,066 (one million, four hundred and sixteen thousand, sixty-six) rubles 10 kopecks.

Term of providing services: commencement date of providing services - date of signing the contract, end date - three months from the date of signing of the contract.


Effective Period of Contract: The contract comes into force from the moment of its signing by both parties and remains in force until full fulfilment of obligations by the parties stipulated by the contract.


Voting results:

"For" - 6 (S. I. Shmatko, S. S. Beloborodov, B. Yu. Kovalchuk, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (V. V. Kudryavy)


Decision made.


A member of the Board of Directors of JSC RusHydro, E. P. Volkov, 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:

4.1.2.1. Determine the price for information services on Development of benchmarking of the activity of hydro power plants. Function control module of maintenance operation costs (maintenance, overhauls, retooling and modernisation) of the main production equipment of hydro power plants by the agreement between JSC RusHydro and CJSC APBE to the amount of 1,716,900 (one million, seven hundred and sixteen thousand, nine hundred) rubles 00 kopecks, including VAT at the rate of 18 per cent in the amount of 261,900 (two hundred and sixty-one thousand, nine hundred) rubles 00 kopecks according to the tender of CJSC APBE, which has been acknowledged the winner of the tender conducted by JSC RusHydro.

4.1.2.2. Approve conclusion of the contract for providing information services for development of benchmarking of the activity of hydro power plants. Function control module of maintenance operation costs (maintenance, overhauls, retooling and modernisation) of the main production equipment of hydro power plants between JSC RusHydro and CJSC APBE which is an interested party transactions, on the following terms:

Parties to Contract:

Customer - JSC RusHydro;

Executor - CJSC APBE.

Subject of Contract: according to the terms of the contract, the Executor undertakes, in compliance with technical assignment for service provisions, to provide information services on Development of benchmarking of the activity of hydro power plants. Function control module of maintenance operation costs (maintenance, overhauls, retooling and modernisation) of the main production equipment of hydro power plants, and the Customer undertakes to pay for the services provided:

Contract Price: 1,716,900 (one million, seven hundred and sixteen thousand, nine hundred) rubles 00 kopecks, including VAT at the rate of 18 per cent in the amount of 261,900 (two hundred and sixty-one thousand, nine hundred) rubles 00 kopecks.

Term of providing services: commencement date of providing services - date of signing the contract, end date - three months from the date of signing of the contract.

Effective Period of Contract: The contract comes into force from the moment of its signing by both parties and remains in force until full fulfilment of obligations by the parties stipulated by the contract.


Voting results:

"For" - 6 (S. I. Shmatko, S. S. Beloborodov, B. Yu. Kovalchuk, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (V. V. Kudryavy)


Decision made.


A member of the Board of Directors of JSC RusHydro, E. P. Volkov, 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.


Matter 5: Election of the secretary of Extraordinary General Shareholders' Meeting of the company.


Decision:

5.1. Revoke the decision of the Board of Directors of JSC RusHydro stated in clause 2.11 on issue 2 "On issues related to convening, preparation and conduct of an Extraordinary General Shareholders' Meeting" (minutes No. 107 of 13.09.2010).

5.2. Elect Mikhail Mikhaylovich Davydov, collective secretary of JCS RusHydro, as Secretary of the General Shareholders' Meeting of JSC RusHydro to be held on 22.10.2010.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0


"Abstained" - 0

Decision made.


Matter 6: Approval of JSC RusHydro's Investment Programme for 2011-2013.


Decision:

Approve the Investment Programme of JSC RusHydro for 2011-2013, which includes:

1. Main characteristics of the Investment Programme of JSC RusHydro for 2011-2013 (List of investment projects and plan of their funding) (Appendix 4).

2. Funding sources of the Investment Programme of JSC RusHydro for 2011-2013 (in the forecast priced for the corresponding years) (Appendix 5).


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 7: Approval of the company's Registrar and contract terms with him.


Decision:

7.1. Appoint Open Joint-Stock Company Registrator R.O.S.T. (hereinafter referred to as Registrar) as the company's registrar.

7.2. Approve the contractual terms with Registrar according to Appendix 6.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.


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


Decision:

8.1.1. Instruct HSC RusHydro's representatives in the Management Board of JSC Hydroinvest to vote FOR making the following decision:

8.1.1.1. Approve participation of JSC Hydroinvest, a subsidiary of JSC RusHydro, in JSC RusHydro by means of purchasing of shares of JSC RusHydro in the amount of 132,284,298 (one hundred and thirty-two million, two hundred and eighty-four thousand, two hundred and ninety-eight) items by JSC Hydroinvest from JSC Kabbalkenergo, a subsidiary of JSC Holding MRSK, in full discharge of liabilities of JSC Kabbalkenergo to JSC Hydroinvest (in compliance with the contract of cession of a right No. MG/1 of 27.06.2008, concluded between JSC Hydroinvest and Cherek 1 Limited on the following terms:

8.1.1.2. Category, type, face value of shares: ordinary registered shares with the par value of 1 (one) ruble per 1 (one) share;

8.1.1.3. Number of shares being acquired: 132,284,298 (one hundred and thirty-two million, two hundred and eighty-four thousand, two hundred and ninety-eight) shares;

8.1.1.4. The scope of liabilities of JSC Kabbalkenergo to JSC Hydroinvest is 253,473,099 (two hundred and fifty-three million, four hundred and seventy-three thousand, ninety-nine) rubles;

8.1.1.5. The market value of liabilities of JSC Kabbalkenergo to JSC Hydroinvest as per conclusion of the independent appraiser of CJSC ABM Partner is 168,058,000 (one hundred and sixty-eight million, fifty-eight thousand) rubles;

8.1.1.6. Share acquisition procedure: transfer of JSC RusHydro's shares owned by JSC Kabbalkenergo to JSC Hydroinvest in full discharge of liabilities of JSC Kabbalkenergo to JSC Hydroinvest.


Voting results:

"For" - 9 (S. I. Shmatko, S. S. Beloborodov, E. P. Volkov, E. V. Dod, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, 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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