On March 11, 2004 regular session of OJSC “VolgaTelecom” Board of directors was held. The Board of directors adopted the Code of corporate behavior, approved the company’s budget for 2004, the provisions on the committees of the Board of directors and their structure, it also considered the issues of relationship with VIP-customers and performance of the company’s PR structures.
The purpose of adopting the Code of corporate behavior – formation and implementation to day-to-day activity of the principles of corporate behavior based on safeguarding legitimate interests and rights of all shareholders and investors. It will facilitate the increase of management efficiency, growth of investment attractiveness and capitalization and ultimately – to successful development of the company.
“Adoption of the Code, - says OJSC “VolgaTelecom” General director Mr. Vladimir Lyulin, - emphasizes the devotion of the company to the rules and norms of corporate management of the world community”.
The Code is a corpus of rules of the best practice, basing on these rules Russia’s FCSM as a regulatory body, investors and other interested parties will be able to evaluate the company’s performance practice in the area of corporate management. In addition, the Code is the foundation for the formation of ethic standards in corporate management sphere and provides milestones and standards of activity to the members of the company’s management bodies.
The version of OJSC “VolgaTelecom” Code of corporate behavior adopted by the Board of directors (http://www.volgatelecom.ru/?id=308) passed the examination at International Financial Corporation and at Russia’s institute of directors.
In addition, on March 11 the Board of directors considered and approved the issue of forming the committees of the Board of directors which should serve to the increase of efficiency and quality of performance of the Board of directors and it also approved the appropriate provisions on these committees. The basic function of committees of the Board of directors will be preliminary consideration and preparation of recommendations for decision taking. The committee assists to provision of actual participation of the Board of directors members in the Company’s management and their personal awareness of the company’s activity. At present the structure of three Committees is approved in OJSC “VolgaTelecom”: the Committee on corporate management, the Committee on budget and investment planning and the Committee on staff and emoluments. These committees comprise the representatives of the Board of directors, OJSC “Sviayzinvest”, and representatives of the company.