Corporate governance system
The corporate governance system of OAO IDGC of Urals is based on principles designed to multiply assets, enhance investment prospects and market value, maintain the Company’s financial stability and profitability as well as respect the rights and interests of stockholders and stakeholders. Disclosure and transparency of financial information aligned with preservation of the Company’s interests in terms of commercial secrets and confidential information play a significant role in the IDGC of Urals corporate governance system. One of the most important channels for distribution of information, available to the majority of stakeholders, is the Company’s official web-site (https://www.mrsk-ural.ru/en/), containing Investor Relations Section (https://www.mrsk-ural.ru/en/ir/) and Company’s official web-page at the Interfax newswire system (http://www.e-disclosure.ru/portal/company.aspx?id=12105). These resources can freely be used to view the latest Company’s news, financial and operational performance, variety of statements, reports and other useful information on the Company’s operations as well as bylaws regulating management and oversight bodies of the Company (The Charter, Regulations on the General Meeting of Stockholders, Regulations on the Board of Directors, Regulations on the Executive Board, Regulations on the Board of Internal Auditors, etc.). Adhering to the principle of equal access to the information for all stakeholders, OAO IDGC of Urals publishes information on its official web-site both in Russian and English.
THE STRUCTURE OF THE MANAGEMENT AND OVERSIGHT BODIES AT OAO IDGC OF URALS
Basic Definitions:
| GENERAL MEETING OF STOCKHOLDERS | is the supreme governing body which purview covers the most significant aspects of the Company’s activities. |
| BOARD OF DIRECTORS | is the governing body, designed to handle the overall management of the Company and liable for strategic management focusing on enhanced shareholder value of the Company. The Board of Directors oversees the Company’s executive bodies and supervises their efficiency. |
| BOARD OF DIRECTORS COMMITTEES | are consultative and advisory bodies assisting the Board of Directors in its overall charge of the Company. |
| CORPORATE SECRETARY | is a Company’s official enforcing Company’s compliance with Russian laws, Charter and bylaws of the Company that guarantee implementation of rights and interests of stockholders. |
| EXECUTIVE BOARD | is the collegiate executive body that manages the Company’s day-to-day operations. |
| GENERAL DIRECTOR | is the sole executive body that performs the functions of the Chair of the Company’s Executive Board. |
| BOARD OF INTERNAL AUDITORS | is the supervisory body that oversees the Company’s financial and operational activities and is elected by the General Meeting of Stockholders. |
| EXTERNAL AUDITOR | is the supervisory body, approved by the General Meeting at the suggestion of the Board of Directors to conduct annually audits of the Company’s RAS and IFRS financial statements. |
| INTERNAL CONTROL | is a process carried out by the Company’s Board of Directors, Board of Internal Auditors, officers and employees of all Company’s management levels to enforce reasonable assurance of goal achievement. |
| INTERNAL AUDIT (DEPARTMENT) | is a unit of the Company, liable for analysis and evaluation of the Company’s business processes. |