Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS
Provisions of the Code of Corporate
Behaviour (CCB)
Existence of a special division of the Company
ensuring compliance with internal control pro
cedures (Inspection and Supervision
Administration)
The Company’s internal documents must contain
a provision that the structure and membership
of the Inspection and Supervision Administration
is to be determined by the Company’s Board of
Directors
The Inspection and Supervision Administration
shall employ no persons found guilty of
committing offences in the sphere of business or
crimes against federal or local government, or to
whom administrative punishment was applied for
offences in the sphere of business, finances, taxes,
or the security market.
The Inspection and Supervision Administration
shall employ no persons who are members of the
Company’s executive bodies, or persons who are
members, CEO (managing director), members of
the managing bodies, or employees of any legal
entity competing with the Company
The Company’s internal documents must specify
the time frame for submission of documents
and materials to the Inspection and Supervision
Administration for the purpose of evaluating
business operations performed, and the
responsibility of the Company’s officers and
employees for non-submission within such a time
frame
The Company’s internal documents must provide
for an obligation of the Inspection and Supervision
Administration to inform the Audit Committee (or,
in case of its absence, the Board of Directors) of the
incompliances found.
The Company’s Charter must provide that the
Inspection and Supervision Administration
make a preliminary assessment of whether it is
expedient to perform operations not provided
for in the Company’s financial and business plan
(nonstandard operations)
Observance
of the CCB
(yes or no)
yes
yes
yes
yes
yes
yes
No
SEASON 2007
Remarks
Clause 16.3 and Clause 16.4
of the OJSC MMK’s Charter
approved by the decision of the
annual general shareholders’
meeting on 21.04.2006Clause
2.1 and Clause 2.2 of the OJSC
MMK’s Regulations on Audit
Committee approved by the
decision of the annual general
shareholders’ meeting on
22.04.2005
Clause 5.8 and Clause 6.1 of
the OJSC MMK’s Regulations
on Internal Control Procedures
approved by the decision of the
Board of Directors on 23.12.2005
Clause 5.5.6 and Clause 5.6 of
the OJSC MMK’s Regulations
on Internal Control Procedures
approved by the decision of the
Board of Directors on 23.12.2005
In terms of corporate
governance improvement
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