The Managing Board

The Managing Board of Russian Railways as a collegial executive body provides general management of company economic activity (except resolving the issues referred by the federal law “On Joint Stock Companies” and the Company Charter to the competence of the general meeting of shareholders and the Board of Directors and also the President of the Company if the Company Charter does not specify otherwise).

The main tasks of the Company’s Managing Board are the development of proposals regarding the strategy of the Company’s activity; the implementation of the Company’s financial and economic policy; reaching decisions in relation to the most important issues of its current economic activity and the coordination of its subdivision operation; the expansion of the internal control system and risk monitoring system enhancement, and ensuring protection of shareholders’ rights and legal interests.

The Company’s Managing Board exercises its activity in accordance with the legislation of the Russian Federation, the Company Charter, sharedholder decisions and the Company’s Managing Board general meetings, provision of Russian Railways Managing Board, and the Company’s internal documents.

The Managing Board acts in the Company’s interests and reports to the Company’s general meeting of shareholders and the Managing Board.

The powers of the Company’s Managing Board include the following:

• Development and presentation of priority directions for the Company’s activity and prospective plans for their implementation to the Company’s Board of Directors, including the Company’s annual budgets and investment programmes and preparation of reports on their execution for the Board of Directors, as well as the development and approval of the Company’s current activity;
• Approval of internal settlement rates, fees, and payment for work (services), carried out (provided) by the Company that do not relate to the area of natural monopoly;
• Establishing of rules that ensure proper arrangement and accurate accounting in the Company, and timely presentation of the annual report and other financial records to corresponding bodies, as well as information regarding the Company’s activity to shareholders, creditors and the mass media;
• Presentation of prospects of securities issue and other documents related to the issue of the Company’s securities to the Board of Directors;
• Arrangements to carry out the Company’s prospective and current plans, with the implementation of investment, financial, and other Company projects;
• Establishing the procedure for recording the Company’s affiliated entities;
• Consideration and coordination of collective agreement projects in the Company, of provisions on industry no-state pension provision, compulsory pension insurance, professional pension insurance, and industry tariff agreement on railway transport, as well as their submission to the Company’s President for signing;
• Establishing the procedure for shareholders’ familiarisation with information about the Company;
• Establishing a labour payment system and determining the measures for the Company’s personnel labour motivation;
• Giving obligatory instructions to affiliate companies on the issues determined in those companies’ charters or in agreements entered with them by the Company;
• Approval of the Company’s internal documents regarding the issues related to the Managing Board competence;
• Resolving other issues related to the Company’s current activity that are offered for consideration by the Company’s Chairman of the Managing Board, the Company’s Board of Directors or the shareholder.