Board committees

In order to assure the efficiency and quality of the Board’s work when solving issues that fall under the authority of the Board of Directors of PJSC NCSP, standing committees are formed for the term of the Board of Directors. The Board of Directors approves the regulations on committees and amends them as needed. The Board of Directors currently has three standing committees, the Audit Committee, the Nomination and Remuneration Committee and the Strategy Committee. The committees are consultative and advisory bodies that act within their mandates and report to the Board of Directors.

Audit Committee

Key functions:

  • Analyzes financial statements and external and internal audits and submits recommendations to the Board of Directors
  • Monitors:
  • Quality and completeness of financial statements
  • Qualifications and independence of external auditor
  • Activities of Internal Control and Risk Management Service
  • Activities of Internal Audit Service
  • Works closely with external auditor, Audit Commission and Internal Control Service
  • Handles other issues as per the Regulation on the Committee

The Committee was made up of two nonexecutive and two independent directors at the beginning of 2018. The Committee members in 2018 were:

  • From January 1 to April 12, 2018: Leyla Mammadzada, Alexander Potapushin and Rashid Sharipov
  • From April 13 to June 28, 2018: Sergey Andronov, Maxim Grishanin and Rashid Sharipov
  • From July 23 to September 27, 2018: Sergey Andronov, Maxim Grishanin and Rashid Sharipov
  • From December 21 to December 31, 2018: Sergey Andronov, Maxim Grishanin and Rashid Sharipov

Report on the work of the Committee in 2018

The Audit Committee held two meetings in 2018, at which it considered the following issues:

  • Appointment of the Committee secretary
  • The opinion on PJSC NCSP’s auditor for 2017 and drawing up recommendations on the approval of an auditor for 2018
  • The results of the work of PJSC NCSP’s Internal Audit Service (IAS) in the period from August 2017 to August 2018
  • The IAS work schedule for 2018
  • The draft “Procedures for cooperation between the IAS and the management of PJSC NCSP, its subsidiaries and affiliates when conducting audits”
  • Approval of PJSC NCSP’s material risks map for 2018

Nomination and Remuneration Committee

Key functions:

  • Considers, analyzes and provides recommendations on selection of candidates for the Board of Directors, Management Board, position of CEO and the management bodies of PJSC NCSP subsidiaries and affiliates
  • Preliminarily approves candidates nominated by the CEO to fill vacant key management positions and works out recommendations on the financial terms of employment contracts with them
  • Prepares recommendations on the amount of remuneration and compensation paid to members of the Board of Directors and Audit Commission
  • Issues opinions on all matters related to policy for selecting candidates for the Company’s management and control bodies
  • Issues opinions on approval for concurrently serving in the management bodies of other organizations
  • Participates in control and verification of compliance with decisions and instructions of the Board of Directors on issues within its mandate
  • Handles other issues as per the Regulation on the Committee

The Committee was made up of two nonexecutive and two independent directors at the beginning of 2018. The Committee members were:

  • From January 1 to April 12, 2018: Sergey Andronov, Maxim Grishanin, Leyla Mammadzada and Alexander Potapushin
  • From April 13 to June 28, 2018: Sergey Andronov, Maxim Grishanin, Alexander Tikhonov and Rashid Sharipov
  • From July 23 to September 27, 2018: Sergey Andronov, Maxim Grishanin, Alexander Tikhonov and Rashid Sharipov
  • From December 21 to December 31, 2018: Sergey Andronov, Maxim Grishanin, Alexander Tikhonov and Lev Kuznetsov

Report on the work of the Committee in 2018

The Committee held three meetings in 2018, at which it considered the following issues:

  • Appointment of the Committee secretary
  • Approval of the candidates to fill the positions of the first level
  • Approval of a conventional agreement with a member of the Company’s Management Board
  • Approval of PJSC NCSP’s subsidiaries and affiliates general directors

Strategy Committee

Key functions:

Preliminary consideration and preparation of recommendations for the Board of Directors on the following issues:

  • Determination of strategic goals and priorities of the Company’s business and monitoring their implementation, including assessment of the system for managing the processes of strategic planning and investment, as well as opening of investment projects and approval of business plans for them
  • Approval of the Company’s annual and long-term budgets and reports on their execution
  • Changes in the organizational structure of the Company and creation of separate divisions of the Company (branches, representative offices) in Russia and other countries
  • Establishment of the principles and system of corporate governance
  • Assessment of the efficiency of the Company’s business in the medium and long term
  • The Company’s stake in other organizations, including direct and indirect acquisition and disposal of equity stakes in organizations, and encumbrance of shares and stakes
  • Approval of Company policies (dividend, tariff, technology)
  • Distribution of profit, including the amount of dividends on the Company’s shares and procedure for paying them, as well as assessment of possible losses
  • Other issues as per the Regulation on the Committee

The Committee was made up of three nonexecutive and two independent directors at the beginning of 2018. The Committee members were:

  • From January 1 to April 12, 2018: Maxim Grishanin, Leyla Mammadzada, Alexander Potapushin, Dmitry Pristanskov and Rashid Sharipov
  • From April 13 to June 28, 2018: Sergey Andronov, Maxim Grishanin, Sergey Kireev, Dmitry Pristanskov and Rashid Sharipov
  • From July 23 to September 27, 2018: Sergey Andronov, Maxim Grishanin, Sergey Kireev, Alexander Tikhonov and Rashid Sharipov
  • From December 21 to December 31, 2018: Sergey Andronov, Maxim Grishanin, Sergey Kireev, Lev Kuznetsov and Alexander Tikhonov

Report on the work of the Committee in 2018

The Committee held one meeting in 2018, at which it considered the following issues:

  • Appointment of the Committee secretary
  • Approval of the organizational structure of PJSC NCSP’s first-level management
  • Changes to the Charter of PJSC NCSP to put issues concerning the organization of protection for information constituting a state secret under the authority of the CEO
  • Approval for an interested-party transaction: the signing of a loan contract between PJSC NCSP (Borrower) and LLC NMT (Lender)