Annual Report 2013

Auditing Committee

The Audit Commission monitors the Company’s financial and business operations. The Committee is elected by the General Shareholders’ Meeting for the upcoming year until the next Annual General Shareholders’ Meeting under the Joint-stock Companies Federal Act, Article 24 of the Company’s Charter and the Regulation on the Audit Committee.

For details on this document, please visit our corporate website.

The Audit Commission fulfills the following functions:

  • monitors the Company’s financial and business operations;
  • monitors compliance of the Company’s financial and business operations with the laws of the Russian Federation and the Company’s Charter;
  • provides independent evaluation of information on the financial standing of the Company.

The current Audit Commission was elected at the Annual General Shareholders’ Meeting on June 14, 2013. The Commission consists of five members who are not members of the management bodies or employees of the Company, which ensures their objectivity and independence.

IDGC of Centre members of the Audit Commission do not hold shares of the Company or its subsidiaries and did not execute any transactions with the Company’s shares to purchase or dispose of such shares in 2013. There were no other transactions whatsoever between the members of the Audit Commission and IDGC of Centre.

For details on the Audit Commission, please visit our corporate website.

The Company’s Audit Commission met 11 times in 2013 and discussed the issues of approving the Audit Commission’s plan of work, election of the Commission’s chairman and secretary, and matters directly related to auditing and reviewing the audit reports.

For details on the resolutions passed by the Company’s Audit Commission, please visit our corporate website.

INFORMATION ON THE MEMBERS OF THE AUDIT COMMISSION AS OF DECEMBER 31, 2013:

Marina Alexeyevna Lelekova
(Chairman of the Audit Commission)
Director of the Internal Audit and Risk Management Department, JSC Russian Grids
Born in 1961, Russian citizen.
Graduated from the Far Eastern Institute of Soviet Trade in 1982 with a degree in economics.
Igor Yuryevich Bogachev Chief Expert of the Construction Audit and Investment Project Expert Review Group, Department of Internal Control and Risk Management, JSC FGC UES
Born in 1959, Russian citizen.
Graduated from the Moscow Automotive Mechanical Institute in 1981 with a degree in mechanical engineering.
Ivan Alexeyevich Gaichenya Director of the Security Department, JSC Russian Grids
Born in 1967, Russian citizen.
Graduated from the Higher Border Military and Political School of the KGB of the USSR in 1990, and from the International Independent University of Environmental and Political Science in 1999 with a law degree and from the Military Academy of the General Staff of the Armed Forces in 2000.
Olga Vladimirovna Golubeva Leading Expert of the Corporate Governance Analysis and Control Division, Department of Corporate Governance and Shareholder-Investor Relations, JSC Russian Grids
Born in 1983, Russian citizen.
Graduated from Moscow University for the Humanities in 2005 with a law degree.
Galina Ivanovna Meshalova Chief Expert of the Internal Audit Division, Department of Internal Control and Risk Management, JSC FGC UES
Born in 1957, Russian citizen.
Graduated from North Ossetia State University in 1980 with a degree in industrial planning.

REMUNERATION OF THE MEMBERS OF THE AUDIT COMMISSION

In 2013, IDGC of Centre paid remuneration to the members of the Audit Commission in the amount of 2,636 thous. RUB for auditing financial and business operations in 2011-2012.

All payments to the Audit Commission are made in accordance with the current Regulation on Remunerations and Compensations of the Members of the IDGC of Centre Audit Commission. The Regulation stipulates that Audit Commission members receive remuneration in the amount of 25 minimum wages of category 1 workers for taking part in the audit (revision) of the Company’s financial and business operations. Remuneration of the Chairman of the Audit Commission is increased by 1.5.

For details on this Regulation, please visit our corporate website.