Investors came together on December 10, 2008, to discuss existing corporate governance issues of concern in conditions of the world financial crisis. They also assessed companies and top managers by results of 2008 in terns of a number of nominations
On December 10, 2008, the Investor Protection Association held the press-conference “Corporate governance in Russia – current situation and prospects in times of financial crisis”. The main foñus of the conference was made on most urgent existing issues, including negative tendencies in relations between shareholders, issuers and regulators in conditions of the financial crisis, their consequences, as well as possible ways of their elimination.By results of the event the IPA named winners in various nominations of “Russian corporate governance leaders”, as well as companies that in the opinion of investors were characterized by lowest level of corporate governance.
 Denis Kulikov, Executive director of the Investor Protection Association |
The opening speech was delivered by Executive director of the Investor Protection Association Denis Kulikov, who touched upon existing situation with corporate governance and prospects of its development in conditions of financial crisis. |
The following issues were also covered during the press-conference:
In conclusion the IPA presented its new project
TOP-100 ISSUERS.
The scope of this project comprises analysis of the background of conflict situations with participation of the largest Russian issuers, their classification, monitoring and bringing them to the attention of the business community.
The following factors are taken into consideration while giving estimates of each issuer:
- facts of corporate or other conflicts that could damage material standing or image of the issuer;
- facts of independent appraisal of the issuer’s assets which caused the conflict, disputes;
- application of transfer pricing by the issuer;
- conclusion of interested-party transactions violating corporate governance principles.
The project is first of all aimed at informing all interested parties (shareholders, issuers, regulators); increase of level of general corporate conduct through improving existing and introducing new legislative mechanisms based on the analysis conducted.
In conclusion the IPA named companies and managers who won in the eighth annual competition “Russian corporate governance leaders” and were selected by IPA members by secret voting.
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Having given a positive estimate to “successful restructuring and information support of the process” investors have for the second time named OJSC RAO “UES of Russia” the winner in the nomination “Company with the highest level of corporate governance”. |
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Alexander Izosimov, General Director of OJSC “Vimpelkom”, has traditionally won over votes of investors and was selected “Best corporate manager” for the third time in the history of the ceremony. |
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When selecting OJSC “Rosneft” as the winner in the nomination “Company with best investor relations” investors referred to regular events conducted for analysts, prompt and comprehensive responses provided by the company to requests for information. |
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OJSC “Severstal” has again won in the nomination “Company with best dividend policy”. In 2004 investors also selected this company as the best in this respect. In 2008 IPA members mentioned “increase of dividend payments against the favorable situation in the segment” as the decisive factor that influenced their choice. |
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OJSC “Sberbank” has for the first time won in the nomination “Company with best progress in improving corporate governance”. “Improvement of corporate strategy, quality changes in management” influenced decision of IPA members. |
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“Detailed description of all business features” in the annual report was the key factor in favour of OJSC “GMK “Norilsky Nickel” that was elected “Company with best annual report”. It should be noted that the annual report of the company was also recognized as the best in 2004 and 2005.
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Having named it “Company with the lowest level of corporate governance” investors have sent a warning to the company “Onexim”. The decision of investors was influenced by the conflict around TGK-4.
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OJSC RAO “UES of Russia” has for the fourth time won in the nomination “Company with greatest impact on development of corporate governance”. |
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Seppo Remes has been for the second time recognized as “Best independent director”. Mr. Remes is a member of the Board of Directors of such companies as OJSC “Holding MRSK”, OJSC “FSk UES”, OJSC “RusHydro”, OJSC “OGK-6”, state corporation “Rosnanotekh”, OJSC “MRSK Volgi”, OJSC “MRSK Severo-Zapada”, OJSC “Sollers”, OJSC “OMZ”, OJSC “Kirovsky zavod”, OJSC “SIBUR Holding”, OJSC “LSR Group”, Ponsse Russia, Ponsse Oyi, OJSC RAO UES of Russia. |
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According to investors Igor Sechin (OJSC “Rosneft”) who “actively pushes and upholds interests of the company” is “Best chairman of the Board of Directors” |
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Natalia Pokrovskaya from OJSC “Volgatelecom” has been for the second time elected “Best corporate secretary” for “high expertise in performing its duties”. |
New nominations were added this year in order to give an objective estimate of the situation in the investment market.
Thus, no less than three conflicts were mentioned by investors in the nomination “Corporate conflict of the year”.
“Infringement upon rights and discrimination of minority shareholders” was the decisive factor that made investors give their votes for Open Insurance Joint Stock Company “Ingosstrakh”;
“the most impudent violation of shareholders rights” in OJSC “TGK-2”, OJSC “TGK-4”, as well as the conflict between shareholders of TNK-BP Holding.
These companies were selected three “leaders” of the nomination.
In the nomination “Disputable appraisal of assets” votes of most IPA members went to the company OJSC “OGK-3” in connection with ”acquisition of non-core assets at the height of crisis at the overvalued price”.
OJSC “Kuzbassrazrezugol” was recognized by investors as “Company that suffered from transfer pricing”.
Two leaders were named in the nomination “Interested-party transaction with violation of corporate governance principles”: “Ingosstrakh” in connection with sales of assets of its subsidiaries and OJSC “OGK-3” in connection with purchase of non-core assets at the height of crisis at the overvalued price.
As for the conclusive nomination “Difficulties with judicial protection of investors’ rights”, investors were unanimous in pointing to the situation with the companies OJSC “TGK-2” and OJSC “TGK-4”.
Traditionally within the framework of the event carried out by the IPA in the nomination “For active corporate policy as regards disclosure of the information” (founders – authorized information agencies “Interfax” and AK&M).
Quotes are given according to the materials received by the IPA as a result of the anonymous questioning carried out among heads of investment institutions that are IPA members.
Winners of Award Ceremonies “Corporate governance leaders 2002-2008”
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Informational partners of the Round Table and the Ceremony in 2008
