Interaction with subsidiaries and affiliates | Corporate management | Corporate management. Internal control and risk management KubanEnergo: Yearly report 2011

Main aims in interaction between the Company and subsidiaries and affiliates.: To ensure stable financial development and profitability of subsidiaries and affiliates.; To protect the rights and legally protected interests of shareholders in the Company and the subsidiaries and affiliates.; To improve the investment attractiveness of the Company and the subsidiaries and affiliates by providing the investment community with full, timely and veracious information on the activities of subsidiaries and affiliates, as well as by harmony and predictability of corporate policy as a whole.; Developing and carrying out a coordinated and effective investment policy for.

At the current time Kubanenergo is a participant in three subsidiary open joint stock companies with a share in their equity capital of 100%:

Energetik holiday hotel, providing holiday and health improvement services for children and adults, mostly for Company employees and members of their families, as well as holding seminars, conferences, education and training courses and sports competitions.
Energoservis Kubani, carrying out technical testing and instrumental inspection of energy production facilities (mostly for the Company) and energy audits, as well as work within energy service contracts.
Plamya health complex, created to provide holidays and health improvement services for children, in the most post for children of Company employees, as well as holding seminars, conferences, education and training courses and sports competitions.

Interaction between the Company and subsidiaries is carried out in accordance with the requirements of legislation in the Russian Federation and internal documents at Kubanenergo and its subsidiaries, I ncluding the Order of interaction between Kubanenergo and companies in which the Company owns shares approved in 2009 by the Board of Directors^*.

Management and monitoring of the activities of the subsidiaries is carried out by the Company using the following corporate management mechanisms:

in accordance with the Charter of Kubanenergo the function of general shareholders meetings of 100% subsidiary companies is carried out by the Management Board of the Company;
general management of the activities of subsidiaries is carried out their Boards of Directors, the majority of whose members are representatives of Kubanenergo;
regular inspection of financial and operating activities of subsidiaries is carried out by their auditing commissions, whose membership is representatives of Kubanenergo.

Operational management of each subsidiary is carried out by a single executive body, the General Director. Collegiate executive bodies (Management Boards) are not applicable.

For the Company to monitor and control the current activities of subsidiaries planned net profit targets and current liquidity ratios are set for them in accordance with which the business plans of the companies are approved. Reports from the General Director of the Company for Managing Subsidiaries and Affiliates are examined quarterly by the Board of Directors of Kubanenergo.

*
The order of interaction by Kubanenergo with businesses in which the Company owns shares (stocks) can be found at www.kubanenergo.ru — in About the company/Constituent and in house documents

Information on managing bodies of subsidiaries and affiliates

Abbreviated name of subsidiary or affiliate	Members of current Boards of Directors of Subsidiaries and Affiliates Name, position, main place of work, year of birth	Single executive body of subsidiary or affiliate Name, main place of work, position, year of birth
Energetik	Svetlana Stanislavovna Samoilenko, Chair of the Board of Directors, Deputy General Director, Secretary General, Kubanenergo, 1963	LA Kreizman, General Director, Energetik, 1968
	AA Shvetsov, Deputy General Director for Safety, Kubanenergo, 1955
	VA Belik, Head of Department for Personnel Management and Project Organisation, Kubanenergo, 1978
	KM Kurishkin, Senior Expert of the Department of Corporate Management and Investor Relations, MRSK Holding , 1980
	LA Kreizman, General Director, Energetik, 1968
Plamya	Svetlana Stanislavovna Samoilenko, Chair of the Board of Directors, Deputy General Director, Secretary General, Kubanenergo, 1963	LA Kreizman, General Director, Energetik, 1968
	AA Shvetsov, Deputy General Director for Safety, Kubanenergo, 1955
	VA Belik, Head of Department for Personnel Management and Project Organisation, Kubanenergo, 1978
	MA Storchai, Senior Expert in the Department of Standard and Methodology of the Department of Corporate Management and Investor Relations, 1982
	LA Kreizman, General Director, Energetik, 1968
Energoservis Kubani	Andrei Vladimirovich Lyashko, Chair of the Board of Directors, Deputy General Director for Development and Realising Services, Kubanenergo, 1978	SL Ovchenkov, General Director, Energoservis Kubani, 1964
	Vitalii Aleksandrovich Kocherga, Deputy General Director for Corporate Management Kubanenergo, 1977
	Sergei Vladimirovich Anatskii,Deputy, General Director for Capital Construction, Kubanenergo, 1965
	AN Galyaev, Deputy General Director for Capital for Economics and Finance Kubanenergo, 1972
	Pavel Vasilevich Zinchenko, Deputy General Director for Technical Questions, Head Engineer, Kubanenergo, 1963
	KS Konevets, Head of Legal Department, Kubanenergo, 1983
	AS Bulavintsev, Head of Department for Organisation of Electricity Metering of the Department of Transport, Electricity and Energy Saving, MRSK Holding,1976

Detailed information about all subsidiaries and affiliates can be found on the Kubanenergo website in the section titled Subsidiaries.

More information on the results of the business and financial performance of affiliates and subsidiaries is presented in the annual report in Results of the Company’s activities/Financial results/Financial analysis/Financial and economic performance indicators for affiliates and subsidiaries. Information on the equity capital of affiliates and subsidiaries and other information is presented in the annual report in Appendix 6, Kubanenergo participation in other organisations.