The corporate governance rating of IDGC of Centre, PJSC - NCGR 7+ “Developed Corporate Governance Practice” was confirmed

5 September 2019

The Russian Institute of Directors confirmed the corporate governance rating of IDGC of Centre, PJSC at the level of NCGR 7+ “Developed Corporate Governance Practice”. During the monitoring of corporate governance practices of IDGC of Centre, PJSC, experts noted positive changes that could lead to an actual increase in the rating of the Company to the level of NCGR 7++.

The experts noted the following as positive changes.

In 2019, the Board of Directors of the Company for the first time conducted a self-assessment of its work and the work of the Committees of the Board of Directors in accordance with the previously approved Methodology for evaluating work.

The Board of Directors approved new versions of the Regulation on the Internal Audit Department and the Regulation on the Company’s insider information.

In preparation for the annual General Meeting of Shareholders held on 30 May 2019, the Company maintained a telephone channel and a special e-mail address for communication with shareholders, as well as ensured the work of the forum on issues on the agenda of the meeting on the Company’s website on the Internet. In addition, technical conditions for electronic voting were provided for shareholders.

When making amendments and additions to the Articles of Association of the Company, the competence of the Board of Directors of IDGC of Centre, PJSC was expanded to include, among other things, issues related to the approval of internal documents that determine the Company’s policy in the field of risk management, internal control and internal audit, as well as the Company’s information policy and consideration of reports on its implementation.

The new version of the Regulation on the Board of Directors of the Company provides for consideration at in-person meetings of the Board of Directors of the most important issues, the list of which corresponds to those recommended by paragraph 168 of the Russian Corporate Governance Code.

The new composition of the Board of Directors of IDGC of Centre PJSC included 11 members, of which one director is executive, six are non-executive, and four are independent members of the Board of Directors.

After the election of the new composition of the Board of Directors, the composition of the Committees of the Board of Directors of IDGC of Centre, PJSC was formed. The 2/3 Audit Committee is composed of independent directors and is chaired by an independent director. The Personnel and Remuneration Committee included two independent and two non-executive directors.

More information about the results of monitoring the corporate governance practice of IDGC of Centre, PJSC can be found at: https://www.mrsk-1.ru/upload/uved_26.08.2019.pdf.

In accordance with the scale of the National Corporate Governance Rating, the Company with NCGR 7+ complies with the requirements of Russian legislation in the field of corporate governance and follows a significant number of recommendations of the Russian Corporate Governance Code. The company is characterized by fairly low risks of loss of ownership associated with the quality of corporate governance.


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