Board of Directors

The key role in the Company's governance belongs to its Board of Directors. The Board of Directors is the strategic body responsible for the overall governance of the Company. It acts within the scope of authority defined in FESCO's Articles of Association and consists of nine members.

The rules of procedure for the Board of Directors are set out in FESCO’s Regulations on the Board of Directors Approved by the adjourned Annual General Shareholders Meeting on 16 November 2020, Minutes No. 53 dated 20 November 2020. .

In supporting the performance of the Board of Directors, the Company is governed by the recommendations of the Bank of Russia's Corporate Governance Code and consistently works to enhance compliance with principles set out in the Code. Effective performance of the Board of Directors is achieved through the use of the below measures.

• The Board of Directors' activities rely on the strategic planning cycles for FESCO's projects and corporate events. The Board of Directors' six month plans are prepared by the Corporate Secretary and approved by the meeting of the Board of Directors at the beginning of each period: at the beginning of calendar year and at the first meeting of the Board of Directors held after the Annual General Shareholders Meeting. In 2020, the Board of Directors' schedule was adopted and fulfilled in line with the action plan.
• Meetings of the Company's Board of Directors are held via an automated information system designed to support the activities of the Board of Directors. The system allows members of the Board of Directors to timely participate in the governing body activities wherever they are.
• The Company offers an Induction Programme for new members of the Board of Directors, which helps them learn about the aspects of the Group's operations.
• Consulting and advisory bodies (committees of the Board of Directors) were created to preview the most important matters related to the business of the Company.
• The Company has in place the role of the Corporate Secretary.

In 2020, the Board of Directors held 17 meetings and reviewed 97 agenda items.

In the reporting year, the Board of Directors discussed the optimisation of the Company's organisational structure, nomination of the Company's executive bodies (the President and the Executive Board), the sale of FESCO's non-core assets, and other matters of financial and operating performance of the Company, strategy and human resources.

The Board of Directors monitored the management performance in terms of progress against the set targets by regularly reviewing the management reports on the Company's performance in any given period and reports on the fulfilment of the assignments of the Board of Directors and the Board committees.

Another focus of the Board of Directors was to ensure independence of the internal audit service and continuously monitor FESCO's risks. To this end, it evaluated quarterly reports covering performance of the Internal Audit Department, approved FESCO's material risk maps and implemented initiatives to manage such risks in the corresponding period.

Directors are elected by the General Shareholders Meeting for the period until the next Annual General Shareholders Meeting.

Information on the meetings convened and the resolutions made is disclosed on the website of an authorised agency and on the website.