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    1. 3.1 Corporate governance practices
    2. 3.2 Corporate governance system
    3. 3.3 Oversight system
    4. 3.4 Investor and shareholder relations

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3.1 Corporate governance practices

The Corporate Governance Code, recommended by the Bank of Russia, interprets corporate governance as a notion embracing relationships between executive bodies of a joint-stock company, its Board of Directors, shareholders and other stakeholders. Corporate governance is a tool for identification of firm’s goals and ways to achieve these goals as well as for fostering efficient oversight of firm’s operations for shareholders and other stakeholders.

Core goals of corporate governance are:

Our corporate governance is premised on the principles, described below:

Accountability:

Our bylaw stipulates accountability of the Company’s Board of Directors to all stockholders in line with the Russian laws and serves as guidance for the Board of Directors in formulating the strategy and administering executive bodies of the Company.

Fairness:

The Company is voluntarily committed to protect stockholder rights and enforce equal treatment of all stockholders. The Board of Directors affords all stockholders an opportunity of viable defense if their rights are disregarded.

Transparency:

The Company enforces just-in-time disclosure of reliable information regarding all corporate events or actions, including but not limited to its financial position, performance, ownership structure and management, and oversees that any stakeholder has an unhindered access to such information.

Responsibility:

The Company recognizes its liability to all stockholders of the Company.

Its corporate governance practices kept upgraded, the Company keeps its fingers on the pulse of corporate governance trends evolving in Russia. The Company highlights the importance of the Corporate Governance Code, adopted and enforced by the Central Bank from 2014. Principles and recommendations of the Code set the bar high and serve as a guidemark for further development of corporate governance system by the Company. We also focus hard on regulatory requirements to reflect them in our corporate governance practices.

The corporate governance practice of OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals features the following positive aspects through the lens of the protection of stockholder rights:

The corporate governance practice of OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals features the following positive aspects through the lens of management and oversight bodies:

The financial and non-financial information disclosure practice features the following positive aspects:

Corporate social responsibility and sustainable development of OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals features the following positive aspects:

Compliance with the principles of the Corporate Governance Code *

Aspects Principles, recommended by the Code Principles complied with in full Principles complied with in part Principles that are not complied with by the Company
Rights of stockholders and equal treatment of stockholders in the exercising of their rights 13 12 (+1) 1 (-1) 0
Board of Directors 36 25 (+9) 8 (-3) 3 (-6)
Corporate Secretary 2 2 0 0
Remuneration system 10 8 2 0
Risk Management and Internal Control System 6 6 0 0
Information disclosure, information policy 7 5 2 0
Significant and important corporate actions and events 5 5 0 0
Total 79 63 (+10) 13 (-4) 3 (-6)
*The statistical data is an aggregate from the report regarding Company’s compliance with principles and recommendations of the Corporate Governance Code, recommended by the Bank of Russia(55); figures in brackets are YoYyear on year absolute changes.

Examine the Appendix for more details on the Company’s compliance with the principles and recommendations of the Corporate Governance Code.

Striving for better corporate governance

The Company closely monitors the progress of corporate legislation and corporate governance practices in Russia. During 2018 the Company zeroed in on examining best-in-class corporate governance practices and procedures; and on analyzing whether the Company could apply them in its corporate governance processes as well as on implementing new practices.

Our achievements in developing corporate governance practices in 2018 are: