Coporate Governance

Coporate Governance

One of strategic trends of "JSC Sverdnipineft " activity (further – company) is the improvement of corporate
governance efficiency. "JSC Sverdnipineft " assumes corporate governance as a means of efficiency improvement of the company activity, strengthening of its image and costs reduction for capital attraction.

The main target of corporate governance development in the company is the provision of sustainable growth of the company capitalization and realization of one shareholder interests. "JSC Sverdnipineft " , understanding the importance of corporate governance, pays great attention to the introduction of corporate governance principles. In 2018, a corporate governance code was approved. The corporate governance code of the company was worked out in accordance with the corporate governance code of one shareholder "JSC Sverdnipineft " .

Since the moment of approval, the diagnostics of "JSC Sverdnipineft " corporate governance for compliance with the level of best practice corporate governance is annually done. According to the results of diagnostics, the drawbacks in governance system are revealed and the steps for governance quality improvement in the are determined. Also, on the basis of diagnostics results, the measures on corporate governanc improvement are hold for its compliance with the world best practice. Diagnostics results demonstrate positive tendency of corporate governance development in the company. High level of impacts not only economic indicators of the company activity, transparency improvement, full-value of decision making but, also, produces positive effect on investors’ perception of the company.

Development of the company is impossible without an efficient structure in place that regulates the relations between the board of directors, the executive board and the shareholders, without investors being sure that the company’s management spends their funds in a reasonable manner to achieve capitalization growth.