Non-Profit Partnership ‘Russian Institute of Directors’ once again confirmed the rating of the corporate governance of Rosseti at the level of 7++ ‘Developed Corporate Governance Practice’. These results confirm that the company complies with the requirements of the Russian legislation in the field of corporate governance and follows a significant number of recommendations of the Russian Corporate Governance Code. It can also be characterized by a high level of corporate governance and low risks of owners’ loss related to the quality of corporate governance.
Experts noted that in the estimated period, Rosseti continued to improve corporate governance.
In 2019, at the annual General Meeting of Shareholders, the restated founders’ and internal documents of the company were approved. The introduced amendments expand the competencies of the Board of Directors in terms of control over the implementation of transactions, allow the use of electronic communications to create a convenient procedure for shareholders to submit proposals to the Company on the nomination of candidates to the company’s bodies and making proposals on the agenda at the General Meeting. At the same time, the Company continues to ensure the easy participation of shareholders in the annual meeting of shareholders, including the live broadcast of the meeting on the corporate website of the Company and the possibility of electronic voting.
The company forms a positive dividend story by paying dividends annually. In 2019, according to the decision of the shareholders of Rosseti, dividends were paid, based on the results of the 1st quarter.
In the company’s Board of Directors, 5 out of 15 members are independent, which meets the requirements of PJSC Moscow Exchange for the first-level issuers and the recommendations of the Corporate Governance Code of the Bank of Russia.
Experts noted that during the monitoring period, the practice of holding face-to-face meetings of the Board of Directors has been improved. The meeting agenda complies with the recommendations of the Corporate Governance Code. The approval of the concept “Digital Transformation 2030” and the rotation policy of the auditor, the restated Regulation on insider information as well as consideration of internal control and audit are among the most important issues.