Annual report 2010

69 The composition of the control and internal audit functionof t he j oint-stock company does not i nclude a ny personswho are members of the executive bodies of the joint-stockcompany o r any persons w ho are a member, t he d irectorgeneral (manager), a member of the management body, oran employee of a corporate entity competing with the jointstockcompany70 Internal documents of the joint-stock company contain thedeadline f or p roviding th e control an d in ternal a uditfunction with documents and materials for the evaluation ofa financial and economic transaction and specify liability ofthe j oint-stock c ompany’s o fficers and employees forfailure to provide them within the prescribed period71 Internal documents of the joint-stock company specify thecontrol an d internal au dit f unction is obligated t o informthe audit committee or, in the absence thereof, the board ofdirectors o f th e jo int-stock c ompany of a ny f oundnonconformity72 The a rticles o f a ssociation of th e joint-stock c ompanyspecify that the control and internal audit function makes apreliminary ev aluation o f wh ether i t is r easonable t oconduct a ny t ransactions o ther t han t hose p rovided f or i nthe financial and economic plan of the joint-stock company(nonstandard transactions)73 Internal documents of the joint-stock company contain theprocedure fo r ob taining a pproval o f n onstandardtransactions from the board of directors74 The board of directors has approved an internal documentthat governs the procedure for internal audit commission’sauditing the joint-stock company’s financial and economicactivitiesComplianceThe c omposition o f th e I nternal Au dit an dRisk Management Dep artment d oes n otinclude these persons.Partial complianceIn a ccordance w ith su bparagraph 5 .1.2 o fparagraph 5.1 of Article 5 of the Regulationsfor I nternal C ontrol Procedures of t heCompany, organizational su pport a nd t hedocuments necessary for audits are providedby t he he ads of divisions of t he C ompany’sexecutive arm wit hin t hree (3) d ays a t t herequest of the Company’s authorized divisionin charge of internal control/audit.Compliance Provided for in paragraph 5.1.4 of Article 5of the Regulations for In ternal ControlProcedures of the Company.NoncomplianceNoncomplianceComplianceThe Articles of Association of the Companydo not contain this provision.Internal d ocuments o f t he C ompany d o notcontain this procedure.The General Meeting of Shareholders of theCompany decided on December 30, 2008, toapprove th e R egulations f or th e I nternalAudit Commission of the Company.