Principles of Corporate Management

The Company understands corporate management as a set of processes providing management and control of its activity and involving relations between shareholders, the Board of Directors and Company`s management for the benefit of shareholders. Corporate management is seen as a method to improve Company`s business efficiency, to strengthen its reputation and reduce the cost of fund raising.

The peculiarities of corporate management in JSC Tyumenenergo are explained by the fact that there is only one shareholder of the Company — JSC Rosseti, which owns 100%, shares of the Company.

All corporate processes in the Company are in line with the above shareholder`s interests.

The Company`s corporate management is performed in accordance with Russian legislation and Code of Corporate Conduct recommended for use by the FCSM Directive No. 421/r dated April 4, 2002, and the principles of corporate management recognised by best international practices, e.g. the Principles of corporate management of the Organization for Economic Cooperation and Development.

The Company`s corporate management is based on the following principles:

  • Accountability. The Code provides for accountability of the Company`s Board of Directors to its shareholder in accordance with applicable Russian legislation and serves as the Board of Directors` guideline for strategy development and monitoring the work of Company`s executive bodies.
  • Fairness. The Company is bound to protect shareholder`s rights. The Board of Directors ensures effective protection of shareholder`s rights in case of any prejudice thereof.
  • Transparency. The Company ensures timely disclosure of accurate information about any material facts on Company`s activity, including its financial situation, results of its activity, ownership structure and management of the Company and free access to such information for all interested parties.
  • Responsibility. The Company acknowledges its responsibility to the shareholder.

Certain structures, procedures and practice of corporate management are regulated by Charter and internal documents of the Company, which can be found on the Company's website at www.te.ru in “About” section.

The Company`s system of management and control bodies are as follows:

The Company`s system of management and control

The Company aims to prevent and most effectively settle any possible conflicts of interest, for which the Company adopted the Code of Corporate Ethics of JSC Tyumenenergo (approved by the Board of Directors on 19 March 2013, protocol No. 05/13).

The objective of Company`s information disclosure policy is to ensure highest confidence of the shareholder, potential investors, contractors and other interested parties by providing information about the Company, its activities and securities in a scope adequate for making reasonable and balanced decisions concerning the Company and its securities.

In disclosing information, the Company extends normative limits and voluntarily discloses additional information that secures high level of transparency and provides for implementation of Company`s information disclosure policy.

The list of information to be disclosed, procedures and terms of disclosure are defined by Regulations on Information Policy approved by the Board of Directors (new revision dated 18 September 2013).

When disclosing information the Company follows the below principles:

  • The principle of completeness and reliability of disclosed information in accordance with which the Company provides all interested parties with information corresponding to facts, without avoiding the disclosure of negative information about itself, to the extent that makes it possible to get a more complete understanding of the Company and results of its activity.
  • The principle of information accessibility in accordance with which the Company uses distribution channels when disclosing information on its activity, providing free and easy access for shareholders, creditors and other interested parties.
  • The principle of well-balanced information, meaning that the Company`s information policy is based on a reasonable balance of the Company`s transparency for all interested parties on one hand, and confidentiality on the other, in order to achieve maximum realization of the shareholders` rights for receiving information on the Company`s activity, provided that the information considered confidential or insider is protected.
  • The principle of information disclosure regularity and timeliness, which defines how the Company provides the shareholder, creditors and other interested parties with information about its activity at the time set forth by the regulations of the Russian Federation and Company`s internal documents.

The disclosed information is published on Company`s website.

The website has both Russian and English versions. The information disclosed as per securities market legislation is also published on the Internet page of Interfax media agency and in the news feed of this agency.

Information disclosure is the responsibility of General Manager. Members of the Board of Directors disclose information about themselves in accordance with norms and regulations of Russian Federation.

The Company seeks to disclose all necessary information in order to comply with legislation and to increase investment attractiveness of JSC Rosseti in general.

The Company confirms its willingness to protect in practice the rights of a broad range of financially interested persons and demonstrates a high level of corporate responsibility.