Corporate Governance System

INARCTICA PJSC pays great attention to its corporate governance system and continually improves it, in deference to international best practices, Russian corporate law norms, the Company's Charter, other internal documents regulating the activities of the Company's governing bodies, recommendations of the Corporate Governance Code of the Bank of Russia and the Listing Rules of Moscow Exchange PJSC.

For its own corporate governance, the Company establishes the following vital principles:

legal compliance

transparency

accountability

equality of shareholders

commitment to sustainable development

Ensuring the successful development of the Company while maintaining a reasonable balance between the legitimate interests of the Company's shareholders and management has been, and remains, the primary objective of corporate governance.

Internal documents regulating the corporate governance system in the Company
  • Charter (approved on 31 August 2022)
  • Regulations on the General Meeting of Shareholders (approved on 2 March 2023)
  • Regulations on the Board of Directors (approved on 2 March 2023)
  • Regulations on Dividend Policy (approved on 29 March 2019)
  • Regulations on the Strategy Committee of the Board of Directors (approved on 15 December 2021)
  • Regulations on the Audit Committee of the Board of Directors (approved on 30 June 2022)
  • Regulations on the Nomination and Remuneration Committee of the Board of Directors (approved on 4 September 2023)
  • Regulations on the Sustainable Development Committee of the Board of Directors (approved on 15 December 2021)
  • Regulations on Remuneration and Compensation for Members of the Board of Directors (approved on 14 March 2024)
  • Regulations on the Internal Audit Service (approved on 30 September 2016)
  • Regulations on the Corporate Secretary (approved on 30 September 2016)
  • Regulations on Insider Information (approved on 14 August 2020)
  • Regulations on Information Policy (approved on 31 December 2020)
  • Performance Assessment Methodology for the Board of Directors, Board Committees and Board members (approved on 11 May 2017)
  • Risk Management Policy (approved on 4 May 2022)
  • Shareholder Relations Policy (approved 14 March 2022)

Assessment of Corporate Governance Quality

In past years, the Company's top corporate governance goals were to continually raise the bar for excellent corporate governance and put as many of the Bank of Russia Corporate Governance Code's (hereafter, the Corporate Governance Code) recommendations into practice as possible. The management of the Company kept raising the standard of corporate governance in 2023, concentrating on enhancing accountability and transparency measures as well as going farther with certain of the Code's suggestions.

According to the results of the Company's self‑assessment of compliance with the recommendations of the Corporate Governance Code, the level of full or partial compliance with the recommendations of the Corporate Governance Code in 2023 was 98%, which is significantly higher than the average indicator of companies from the First Quotation List of the Moscow ExchangeNational Corporate Governance Index: Top 20 2023, prepared by TopCompetence with technical support from the Moscow Exchange and Lomonosov Moscow State University (MSU).. Thus, the Company fully complied with 71 recommendations, partially complied with seven recommendations, and did not comply with only one recommendation.

In 2023, the Company engaged an independent consultant to conduct an independent assessment of the work of the Company's Board of Directors (for the assessment findings Board of Directors of this Report).

99 per cent
compliance with the recommendations of the Corporate Governance Code in 2023
71 recommendations
of the Corporate Governance Code the Company was fully compliant with it in 2023
7 recommendations
of the Corporate Governance Code the Company was partially compliant with it in 2023
Compliance of INARCTICA PJSC with the recommendations of the Corporate Governance Code in the period from 2021 to 2023
Corporate Governance Principle Number of recommendations Full compliance Partial compliance No compliance
2021 2022 2023 2021 2022 2023 2021 2022 2023
Shareholder rights and equal conditions for shareholders in the exercise of their rights 13 9 11 11 2 2 2 2 – –
Board of directors of a company 36 25 27 32 10 7 4 1 2 –
Corporate secretary of a company 2 2 2 2 – – – – – –
Remuneration system for members of the board of directors, executive bodies and other key executives of a company 10 10 10 10 – – – – – –
Risk Management and Internal Control System 6 5 6 6 1 – – – – –
Disclosure of company information, company information policy 7 6 6 6 1 1 1 – – –
Major corporate actions 5 – 4 4 2 – – 3 1 1
TOTAL 79 57 66 71 16 10 7 6 3 1
100% 72% 83% 90% 20% 13% 9% 8% 4% 1%

Plans for further improvement in corporate governance in the Company

The following areas are where the Company intends to continue its work in 2024:

To further improve the quality of corporate governance

To upgrade the risk management and internal control system

To increase the Company's information transparency

To integrate newly acquired assets into the INARCTICA Group's general structure and establish intra‑group management standards across them

To revise and update individual corporate documents

Structure of corporate governance bodies

In 2023, the Company had the following structure of corporate governance bodies: