Corporate governance

Corporate governance
By the Company's corporate governance is understood a set of processes to manage and control its activities in the interests of shareholders. These processes include the relationship between shareholders, board of directors and executive bodies. The Company considers corporate governance a means of improving its efficiency, enhancing its reputation and increasing market capitalization.

INTER RAO UES is on a path of improvement and bringing its system of corporate governance in line with international best practice. The Company realizes that an effective and transparent system of relations between its organs of management, investors, shareholders and stakeholders is a competitive advantage in business that will improve investment attractiveness, reduce borrowing costs and, consequently, increase market capitalization.

Principles of corporate governance
Corporate governance is carried out in accordance with the Company’s Corporate Governance Code and is based on the following principles:

• Accountability. The Code provides for accountability of the Board of Directors of the Company to all shareholders in accordance with applicable law and provides guidance to the Board of Directors in making decisions and monitoring the activities of the executive bodies.
• Fairness. The Company undertakes to protect shareholders' rights and ensure equal treatment of shareholders. The Board of Directors shall provide all shareholders an opportunity to obtain effective redress for violations of their rights.
• Transparency. The Company shall provide timely, accurate disclosure of information about all material facts relating to its activities, including its financial situation, social and environmental indicators, performance, ownership structure and governance of the Company, as well as free access to such information for all stakeholders.
• Responsibility. Society recognizes the rights of all interested parties permitted by applicable law, and seeks to cooperate with such persons or companies for their own development and financial stability.
  
  

In its application of corporate governance INTER RAO UES seeks to follow the general principles laid down in the Code of Corporate Conduct recommended by the Federal Service on Financial Markets.