Annual report 2010

9. Corporate Governance System of JSC IDGC Holding9.9. Investor RelationsInteraction with the investors and shareholders ofIDGC Holding is entrusted to a specialized function,IR Department, established for the purposesof ensuring the exercise of rights of the company’sshareholders and information support forthe key resolutions of the Company’s managementin the securities market.The employees of the IR Department rely in theirwork on the principles of completeness, reliabilityand timeliness of the information being disclosed.The employees of the function communicatewith external auditors such as shareholders,institutional investors (buy-side) and sell-side, aswell as internal auditors (top management of thecompany and IR departments of the subsidiaries).The function for shareholder and investor relationsacts as the sole information channel for professionalparticipants in the securities market andthe company’s management.In 2010, the IR Department held about 30 eventsas part of interaction with the shareholders andinvestors. The management of IDGC Holding participatedin the crucial investment forums organizedby the largest banks. In the fiscal year, asmany as 20 banks appraised the shares in IDGCHolding. The attention of investors in the fiscalyear, to a great extent, derived from the implementationby operating companies of a new tariff-settingmethodology, ensuring return on capitalemployed and guaranteeing yield oninvestment.2010 saw the quantitative growth of events heldin collaboration with the Holding subsidiaries.November witnessed the third annual seminar ofthe IR departments of the distribution grid sectorto summarize the performance in 2010 and identifythe areas of communication with the investmentcommunity in 2011. The analysis of activitiesof the IR departments of the SDCs of JSC IDGCHolding showed that IDGC most actively interactedwith the investment community in Juneand October. In general, the evolution of investorrelations reflected the schedule of expectationsof the news about key quote growth drivers. Thepeak of interaction with the investment community,caused by news about the transition to a newtariff-setting methodology, was seen in Septem -ber and November.73