CORPORATE GOVERNANCE

Management Board

5.2

The Management Board is a collective executive body of the Company appointed by the Board of Directors and responsible for the day-to-day management of the Company. The Management Board performs the functions established by the Charter of OAO RAO "UES of Russia" and acts pursuant to the Regulation on the Management Board of OAO RAO "UES of Russia" approved by the Company's shareholders at the AGM held 28 June 2002.

Under the Company's Charter, the Management Board of OAO RAO "UES of Russia" is responsible for managing day-to-day activities of the Company, developing and submitting for consideration by the Board of Directors the priority aspects of the Company's operations and the long-term implementation plans, as well as internal documents of an organizational and administrative nature.

During the reporting period, the Management Board held 247 meetings or took resolutions in lieu of a meeting, and considered over 1,500 items of business. The Management Board reviewed and took decisions on matters relating to the Company's activities: approved the Draft Programme of Actions to Improve the Reliability of the UES of Russia, the Investment Programme of OAO RAO "UES of Russia" for 2006 and until 2008, the Concept Paper on the RAO UES Technical Policy, and the restructuring plans for a number of WGCs, TGCs, regional energos, etc. The total amount of remuneration paid to the members of the Management Board of OAO RAO "UES of Russia" for FY2005 was RUB255,345 thousand.