Annual Report 2010 - Magnitogorsk Iron & Steel Works

Corporate Governance ObjectivesOJSC MMK conducts its business in line with Russianand international corporate governance standards.This fact, along with the Company’s strong financialperformance, makes it a reliable and trustworthypartner for Russian and foreign investors.MMK’s corporate governance guidelines andprocedures are set out in the Company’s CorporateGovernance Code (approved by the OJSC MMK Boardof Directors on September 21, 2001).http://www.mmk.ru/corporate_governance/internal_documents/code_of_corporate_governance/In order to make sure that the Company's governingbodies and officers comply with the laws and bylawsguaranteeing exercise and protection of the Companyshareholders' rights and interests, a post of theCorporate Secretary was introduced in 2003.The guidelines are as follows:• protection of shareholder rights and interests;• equal treatment of all shareholders;• mutual trust and respect for all interested parties;• transparency and timelydisclosure of informationon the Company’s strategy and activities;• bona fide management practices aimed at the longtermprosperity of the Company;• minimization of the Company's environmentalimpact;• maintaining a consistent corporate policy withrespect to all subsidiary and associated companiesor other legal entities in which MMK is aparticipant, founder or member.The Company’s financial statements are prepared inaccordance with International Financial ReportingStandards (IFRS) and Russian Accounting Standards(RAS).MMK discloses information in Annual Reports,Quarterly Reports, lists of affiliated parties,statements on material developments and anyinformation which may influence the Company’s shareprice.Information is disclosed in accordance with theCompany's Regulations on Information Policyavailable at:http://www.mmk.ru/corporate_governance/internal_documents/group_documents/.The Company is also implementing a programmeto enhance its corporate governance, which wasapproved by the Board on September 24, 2010.50