OAO LUKOIL BOARD OF DIRECTORS APPROVES 2009 ANNUAL REPORT
Tuesday, May 18, 2010
Today the OAO LUKOIL Board of Directors granted preliminary approval to OAO LUKOIL's 2009 Annual Report in accordance with the Federal Law of the Russian Federation “On Joint-stock Companies” and the Charter of the Company.
The document is recommended for approval at the General Shareholders Meeting to be held on June 24, 2010 in Moscow.
The meeting attendees also approved a report evaluating the Board of Directors’ performance in 2009-2010. In view of the assessment results obtained via interviewing the Board members based on the assessment criteria approved at the meeting, which took place on April 20, 2010, the Board of Directors activities in 2009-2010 were declared efficient. This evaluation is confirmed by the LUKOIL Group positive development trend under challenging macroeconomic conditions, which is reflected in the figures of OAO LUKOIL's 2009 Annual Report.
The acting OAO LUKOIL Board of Directors, numbering 11 people, was elected at the General Shareholders Meeting on June 25, 2009. The Board of Directors includes two executive directors, and six members of the Board of Directors comply with independent director standards set by the Code of Corporate Governance adopted by the RF Government on November 28, 2001 and recommended by the RF Federal Commission for the Securities Market.
Between 2009 and 2010, the Board of Directors held eight meetings in presentia and a number of absentee votes. The Board of Directors comprises three committees: the Strategy and Investment Committee, the Audit Committee and the HR and Compensation Committee. Within the 2009-2010 period, the Strategy and Investment Committee held four meetings in presentia, the Audit Committee held six meetings in presentia, and the HR and Compensation Committee held four meetings in presentia and three absentee votes.
The Board of Directors is primarily responsible for defining priorities in the Company’s business, strategic, medium-term and annual planning, as well as summarizing LUKOIL’s operating results. As part of its duties, the Board of Directors made decisions regarding the following:
- LUKOIL Group Strategic Development Program for 2010-2019;
- Preliminary performance results of LUKOIL Group in the first half of 2009 and progress in the execution of the 2009 budget and investment programme;
- Main indicators of LUKOIL Group’s Medium-Term Plan for 2010-2012;
- Preliminary performance results of LUKOIL Group in 2009, and also tasks for 2010 and the near term. Priority lines of business of OAO LUKOIL in 2010. Comparative data based on the Company’s performance figures over the past few years.
