Minutes of 25.02.2011 №118

MINUTES No. 118

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                      February 24, 2011, 6:00 p.m.

                                                                                     (Moscow time)

Minutes Dated:                                                                February 25, 2011

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

                                                                                    G. M. Kurtser

                                                                                    N. G. Kutyin

                                                                                    A. B. Malyshev

                                                                                    M. V. Seliverstrova

                                                                                    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. Development priorities of JSC RusHydro for 2011.

2. Concerning business priorities of the company: Approval of the Concept of Hydraulic facilities' safety and reliability control system.

3. Company's standards in the area of technical regulation.

4. Approving the company's transactions:

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

4.2. Approval of an interested-party transaction with JSC Ust-Srednekanskaya HPP.

5. 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:

5.1. Participation (change of participation share) of JSC Hydroinvest in other organisations.

6. Participation of the company in JSC Hydroinvest.

7. Approval of the report on progress of measures in accordance with the company's non-core assets register for 2010.

8. Implementation of the Innovative Development Programme of JSC RusHydro for 2011-2015.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Development priorities of JSC RusHydro for 2011.


Decision:

Approve development priorities of JSC RusHydro for 2011 (Appendix 1).


Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 2: Concerning business priorities of the company: Approval of the Concept of Hydraulic facilities' safety and reliability control system.


Decision:

Take into consideration the report on implementation of activities related to organisational design of the Hydraulic facilities safety and reliability system and pilot project being implemented at one of JSC RusHydro's subsidiaries (Appendix 2).


Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.

  

Matter 3: Company's standards in the area of technical regulation.


Decision:

3.1.  Announce the standardisation programme of JSC RusHydro in the area of technical regulation for 2009-2011 and approved by a decision of the company's Board of Directors (minutes No. 78 dated 08.06.2009).

3.2.  Approve implementation of JSC RusHydro's Standardisation Programme in the field of technical regulation for 2010-2012 (Appendix 3).


Voting results:

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

"Against" - 0

"Abstained" - 0

Decision made.

  

Matter 4: Approving the company's transactions:


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

 

Decision:

In accordance with Appendix 4 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" - 9 (S. I. Shmatko, A. B. Ballo, E. P. Volkov, V. M. Zimin, 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 recognized as transaction interested party, as well as E. V. Dod, who is the chairman of the company's Management Board and who is not recognized as an independent director.

 

4.2. Approval of an interested-party transaction with JSC Ust-Srednekanskaya HPP.


Decision:

4.2.1. To determine that the amount of non-interest bearing loan to be provided as per the loan agreement between JSC RusHydro and JSC JSC Ust-Srednekanskaya HPP which is an interested party transaction, is 502,250,000.00 (five hundred and two million two hundred and fifty thousand) rubles 00 kopecks.

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

Parties to Contract:

Borrower - JSC Ust-Srednekanskaya 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-Srednekanskaya HPP.


Loan sum: The amount of money transferred to the ownership of the Borrower and subject to repayment equals to 502,250,000.00 (five hundred and two million two hundred and fifty thousand) rubles 00 kopeks.

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

Terms of loan granting: The loan sum shall be granted to the Borrower by tranches not later than 20.12.2011 based on Borrower's request and transferred from the Lender's bank account to the Borrower's bank account according to banking details specified 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, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0


Decision made.

The 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: 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:


5.1. Participation (change of participation share) of JSC Hydroinvest in other organisations.


Decision:

Instruct JSC RusHydro's representatives in the Board of Directors of JSC Hydroinvest on the issue relating to Participation (change in participation) of the company in other organisations to vote FOR the making following decisions:

Approve participation (change of participation share) of JSC Hydroinvest in JSC RusHydro by purchasing additional shares of JSC RusHydro through public offering (state registration number of securities issue 1-01-55038-Е-038D dated 02.12.2010) on the following terms.


Voting results:

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

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.

 

 

Matter 6: Participation of the company in JSC Hydroinvest.


Decision:

Defer consideration of the issue to a later date.


Voting results:

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

 "Against" - 0

"Abstained" - 0

Decision made.


Matter 7: Approval of the report on progress of measures in accordance with the company's non-core assets register for 2010.


Decision:

7.1. Approve the report on implementation of measures for 2010 in accordance with the company's non-core assets register approved by a decision of the company's Board of Directors dated 11.05.2010 (minutes No. 97 dated 11.05.2010) taking into account the amendments made by decisions of the company's Board of Directed dated 15.10.2010 (minutes No. 109 dated 15.10.2010) and dated 08.12.2010 (minutes No. 114 dated 10.12.2010) in accordance with Appendix 5.

7.2. Approve the company's non-core assets register in accordance with and Appendix 6 (revision No. 2).

7.3. Instruct the company's Management Board to review a work progress report in accordance with the company's non-core assets register for 2011 at the meeting of the Board of Directors not later than February 29, 2012.


Voting results:

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

 "Against" - 0

"Abstained" - 0

Decision made.


Matter 8: Implementation of the Innovative Development Programme of JSC RusHydro for 2011-2015.


Decision:

8.1. Determine own resources of JSC RusHydro to finance the innovative development programme of JSC RusHydro for 2011-2015 approved by a decision of the Board of Directors dated 29.12.2010 (minutes No. 116 dated 30.12.2010) taking into account the amendments made by decisions of the company's Board of Directed dated 26.01.2011 (minutes No. 117, dates 26.01.2011) including R&D.

8.2. Take into consideration a list of principal measures to be taken in accordance with the Innovative Development Programme of JSC RusHydro for 2011-2015 (Appendix 7).

8.3. Instruct the Management Board of the company jointly with the Ministry of Energy of the Russian Federation to work out a possibility to consider the following issue "financing of Innovating Development of JSC RusHydro including R&D as part of: "Recommendations to the General Shareholders' Meeting of the company on distribution of the company's profit and losses on the results of the 2010 financial year".


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, E. P. Volkov, E. V. Dod, V. M. Zimin, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstrova, 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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