Related Party Transactions
In line with the effective procedure for notifying members of executive bodies of an impending related party transaction as defined in Art. 83 of Federal Law No. 208-FZ dated 26 December 1995 On Joint-Stock Companies, the Company’s Board of Directors approved the procedure and form for the Company to send electronic copies of notices of such transactions (from the e-mail address of the Company’s Corporate Secretary) to the e-mail addresses of members of the Board of Directors and members of the Executive Board, as well as shareholders of the Company (Minutes No. 10 dated 17 March 2017).
In 2018, 116 notices were sent, one of which (No. 78) was addressed to the Company’s shareholders.
By virtue of Clause 1, Article 83 of Federal Law No. 208-FZ On Joint-Stock Companies dated 26 December 1995, a member of the Company’s Board of Directors or Executive Board has the right to request that the Board of Directors or the general meeting of shareholders approve a related party transaction prior to its execution. In this case, the request shall be sent to the Corporate Secretary’s e-mail address.
In 2018 (on 6 June 2018), one request was received for obtaining the consent of the Company’s Board of Directors to enter into a related party transaction prior to its execution (Addendum No. 3 to Agreement No. TKtz/18/02/001 on Freight Forwarding Services dated 9 February 2018). This transaction was approved by the Company’s Board of Directors (Minutes No. 5 dated 7 September 2018).
In total, in 2018, the Company consummated 113 related party transactions. See section «Corporate Risk Map».
Major transactions are those that go beyond the Company’s ordinary course of business. The Board of Directors issues an opinion on the major transaction containing, among other things, information on potential consequences of such transaction for the Company’s operations and feasibility assessment. This opinion shall be included in the materials for the general meeting of shareholders that will consider granting consent to, or subsequent approval of, the major transaction.
In the 2018 reporting year, the Company did not enter into major transactions.
Other Transactions Foreseen by the Charter
In the course of its business in 2018, the Company entered into a number of transactions that are reserved to the Company’s Board of Directors in accordance with Art. 15.1 of the Company’s Charter.
In 2018, the Company’s Board of Directors reviewed eight transactions falling within its remit pursuant to Art. 15.1 of the Company’s Charter.