Rostelecom (NYSE: ROS; RTS, MICEX: RTKM, RTKMP), Russia's national long-distance telecommunications operator, today announced that the Board of Directors approved the Corporate Governance Code and the Code of Ethics of the Company.
On April 28, 2004, in accordance with the Declaration of Corporate Governance Principles approved on April 11, 2002, the Board of Directors of the Company adopted the Corporate Governance Code and the Code of Ethics.
The Code of Corporate Governance and the Code of Ethics were worked out according to the requirements and recommendations of the NYSE, The U. S. Securities and Exchange Commission (SEC), as well as recommendations of the Federal Commission for Securities Market (FCSM) of Russia stipulated in the Code of Corporate Conduct and obligatory for all the companies listed on the largest Russian stock exchanges.
The Codes are based on the highest standards of Russian and world business practices:
- Complying with the rights and interests of its shareholders in accordance with all applicable laws, rules and regulations;
- Ensuring sustainable growth of shareholder value through improving corporate governance procedures and enhancing transparency;
- Ensuring diligent and good-faith exercise of the Board of Directors' duties and efficient functioning of Committees reporting to the Board in accordance with the high standards of corporate governance and business ethics;
- Maintaining an effective system of internal audit and controls and applying conservative approach to the preparation of books and financial statements;
- Encouraging active cooperation between the Company and its stakeholders aimed at securing financial stability of the Company and its successful development.
The adoption of the Corporate Governance Code and Code of Ethics was aimed at further improvement of the Company's corporate governance practices that regulate matters related to conflicts of interests, abuse of official power and use of insider information, as well as information disclosure procedures.