Regulation on Supervisory board


Confirmed by General meeting of shareholders NHC „Uzbekneftgaz” The Minutes № 1 от „28” June 2007 y. with amendments to the minutes of General meeting of shareholders 30.06.2014y.

With amendments to the minutes of General meeting of shareholders 27.06.2015y.

The Provision of NHC „Uzbekneftgaz” board of governors.

(new edition)

Section I

1. General State

1.1 The Regulations was established according to the law of the Republic of Uzbekistan „About joint-stock companies and protection of the rights of shareholders”, resolutions of the President of Republic of Uzbekistan on 21th of August in 2006 y. №PP-446 „Measures aimed at developing of the organizing activities of National Holding company „Uzbekneftgaz” from on 8th of September 2006y. №PP-461 „On the approval of model rules of an executive managing membership of National Holding Company „Uzbekneftgaz ” and according to the recommendations of corporate governance code, approved by the minutes of meeting of Commission on enhancing of the activity efficiency of JSCs and improving the systems of Corporate management( from dd 11.02.2016г. № 02-02/1-187) and with Charter NHC"Uzbekneftgaz„(further as mentioned in the text Company).

1.2 The main objectives of Board of governors is the implementation of the corporate management of NHK „Uzbekneftegaz”, determination of strategy and the development prospects of an industry, policy and mid-range objective which the Company challanges with.

Section II

2. Compliances and Company board of governors.

2.1 Major features of Board of governors are the followings:

2.1.1. Determination of strategic mission of perspective development of an oil and gas industry and its restructurings, that means ensuring the most complete and effective use of hydrocarbon resources, protection of national interests in the field of development of oil and gas deposits, their production, conversion and delivery to the foreign markets;

2.1.2. Organization of development of medium-dated and long range program of conducting exploration works on oil and gas, development of again dug out and operating oil and gas fields, expansions of oil extraction, gas condensate and natural gas, their profound conversion;

2.1.3. Shaping of the current and medium-term balances of resources and distribution of oil, condensate of natural gas and finished oil products;

2.1.4 Coordination of activities of the joint stock companies which are a part of NHK „Uzbekneftegaz

2.1.5 Coordination of activities of the joint stock companies which are a part of NHK „Uzbekneftegaz” as the single integral production and technological complex providing consecutive and continuous carrying out all work types from search, investigations, production hydrocarbon before their industrial conversion and implementation; industry department (company).

2.1.6 Implementation of measures for wide attraction in an oil and gas industry, especially in geological exploration, investments, including foreign;

2.1.7 Organization of holding in the industry, the single technical policy directed to modernization and upgrade of production, introduction of new technologies and the equipment in geological exploration, production and conversion of hydro carbonic raw materials;

2.2 Within the terms of referred confines of The Board of Governors are the followings:

2.2.1. Determination of area of priorities of the Company;

2.2.2 Calling of the annual and extraordinary general meetings of shareholders of the Company, except as specified calling of extraordinary general shareholder meeting should be held by the person requiring its calling;

2.2.3. Preparation of the agenda of general shareholder meeting;

2.2.4. Determination of date, time and venue of general shareholder meeting;

2.2.5. Determination of date of opening of shareholder register of the Company by preparation for holding general shareholder meeting;

2.2.6 Introduction to the resolution of general shareholder meeting issues on amendments and additions in the charter of NHC or approval to restate charter of Joint-stock Company;

2.2.7 Organization of establishment of market value of property;

2.2.8 Election (appointment) of The Board members of NHJSC (except its chairman), early termination of their powers;

2.2.9 Approval of the annual business plan of the Company;

2.2.10 Creation of Internal Audit Service and appointment of her workers, and also quarterly hearing of its reports;

2.2.11. Being free to use any documents pertaining to the Board governors of Company performance and accept for fulfillment from the Board establishment tasks given to the NHC Board. NHC Board Members may use received documents for office purposes only;

2.2.12. Adoption of resolutions on auditing control, on Audit Control Service and limiting size of payment for its service;

2.2.13. Making recommendations about the amount of the remunerations and compensations paid to members to audit committee (auditor) of the Company;

2.2.14. Making recommendations about the dividend size, form and order of its payment;

2.2.15. Using Company reserve and other funds;

2.2.16. Adoption of resolutions on establishment and closure of the Company branches and representative offices and;

2.2.17. Adoption of resolutions on incorporation of and Company subsidiary and controlled economic companies;

2.2.18 Adoption of resolutions about making of transactions by the Company in the cases of which was contemplated at act of 8 and 9 of the Law of the Republic of Uzbekistan „About joint-stock companies and protection of shareholder rights”;

2.2.19. to entry into major agreements of Company with commercial and non-commercial organizations established by current Law;

2.2.20. to establish a coordination procedure of the Company with economic societies and the organizations, shares and Company ownership, taking decision of matters according to procedure included within a competence of Board of governors;

2.2.21. Adoption of resolutions about the redemption of corporate bonds of the Company;

2.2.22. The solution of issues on increase of an authorized fund (authorized capital) in Company, and also matters of making amendments and the additions to the company charter connected with increase in an authorized fund (authorized capital) in the Company;

2.2.23. Approval of floating issues of shares, bonds and prospectus.

2.2.24. Making amendments to the decision on placement of floating issues of shares(shares, bonds) issue prospectus and approval of their content.

2.2.25. Determination of the price of placement (issues shares to exchange stock and organized over-the-counter market) of shares according to requirements of act 34 of republic of Uzbekistan"On Joint-stock Company and the protection of shareholders";

2.2.26. Adoption of resolutions of issuing Company corporate bonds as well as convertible to shares;

2.2.27. Adoption of resolutions on output company derivatives;

2.2.28. Fixing the sizes paid to the Chairman and board members of the Company of remunerations and compensations.

2.2.29. order establishing and service delivery(receiving) . beneficent, sponsorship and gratis aid.

2.2.30.Adoption of resolution of order establishing and service delivery(receiving) beneficent, sponsorship and gratis aid. within the confines of general meeting of shareholders.

2.2.31 Assignment of Corporate consultant and approval of provision, determining its terms of activities.

2.2.32. Approval of Provision on the information policy.

2.2.33. Creation of committees (working groups) at Board of governors and the adoption of the provisions defining an order of their activity.

2.3. The decision and other matters according to the legislation and the company charter can be carried to competence of Board of governors.

2.4. The matters are within the confines of Board of governors of the Company can’t be consigned to decision of Company Board;

Section III

The Election and the composition of the Board executives of Company

3.1. According to the Resolution of the President of the Republic of Uzbekistan of September 8, 2006 Board of governors consists of 16 members of Board, representatives of main ministries and the CEOs of joint stock companies of an oil and gas industry:

3.1.1. the Deputy Vice minister of the Republic of Uzbekistan is the head complex of the Cabinet concerning geology, energy industry, TEK chemical, petrochemical and metallurgical industry,

The Chairman of Board of Governors

3.1.2. Chairman of the board of NHK „Uzbekneftegaz”, Vice-chairman of Board of governors.

3.1.3 Minister of Finance of the Republic of Uzbekistan.

3.1.4. Minister of Foreign Economic Relations, Investments and Trades of the Republic of Uzbekistan

3.1.5 First deputy of the Minister of Economic Affairs of the Republic of Uzbekistan

3.1.6. Chairman of the Central bank of the Republic of Uzbekistan

3.1.7. Chairman of the State Tax committee of the Republic of Uzbekistan.

3.1.8. Chairman of Committee of the Republic of Uzbekistan for Pirvatization,Demonopolization,and Development of Competition;

3.1.9. The state Committee of the Republic of Uzbekistan for Geology and Mineral resources chairman of the Republic of Uzbekistan

3.1.10. CEO of JSC Uzgeoburneftegaz

3.1.11. CEO of JSC Uzneftegazdobycha

3.1.12. CEO of JSC Uznefteprodukt

3.1.13. CEO of JSC Uztransgaz

3.1.14 CEO of JSC Uzneftegazstroyinvest

3.1.15. CEO of JSC Uzneftegazmash

3.1.16. The chief of head department — the first deputy chairman of the board of NHK „Uzbekneftegaz”, the secretary of Board of governors.

3.2. Members of Board of Governors are assigned to a position and in case of transferring to the composition of Board of governors, this individual is discharged the new person again appointed to his position to the Board of Governors.

3.3 Members of board of governors are elected by general shareholder meeting for a period of one year.

3.4. The persons chosen in structure of Board of governors of the Company can be re-elected unlimited.

3.5. Elections of members of Board of governors of company are performed by cumulative vote.

3.6. At the time of the cumulative vote , the quantity of voice, belonged to each shareholder, is multiplied to number of persons which shall be chosen in Board of governors of the Company, and the shareholder has the right to give received votes completely consequently, for one candidate or to distribute them between two and more candidates.

3.7. The elected candidates are considered to be gathered votes in compostion of Board of Governors of Company.

3.8. In Board of governors of the Company at least three independent members are included.

3.9. Independent members of Board of governors of company are persons which:

3.9.1. Didn’t work in the Company, in its affiliated or affiliated enterprises within the last 5 years;

3.9.2. aren’t a shareholder of the Company, its affiliated or affiliated entities;

3.9.3. not related with the large customer or the supplier having the relevant contract for the amount over 5 thousand sizes of the minimum wage established by the legislation with the Company, its affiliated or affiliated enterprises;

3.9.4. have no service contracts with the Company, its affiliated or affiliated enterprises;

3.9.5. not a member of the family of the person which is or was within the last 5 years a leading employee of the Company, his affiliated or affiliated enterprises;

3.9.6. not the monitored individual by the company (or the member of a group of persons and/or the organizations which collectively exercise control over the Company);

3.9.7. not related with the Company civil agreements and is not the employee of the large shareholder of the Company or higher industry department (company).

Section IV

4. Obligations of the Board of governors’ chairman of the Company

4.1. The chairman of the board of governors will organize his work, convenes meetings of Board of governors and presides over them, organizes minutes of the protocol at meetings, opens General shareholder meeting and is a part of its Presidium, signs on behalf of the company the employment contract about hiring of the Chairman of the board of the Company and his deputies.

4.2. In case of absence of the chairman of the board of governors, his responsibilities are managed by the vice-chairman of Board of governors, and in the absence of the chairman and his deputy — one of members of council of managing directors performs.

5. Secretary and secretariat of Board of governors

5.1. The secretary of Board of governors shall assume all necessary measures for supply of prolonging of Board Governors.

5.2. In case of the secretary’s absent, Deputy of Board of Governors will be in charge for his responsibilities, in case of Deputy’s absent , one of members of Board of Governors shall be in charged.

5.3. Secretary of Board of governors:

5.3.1.Organizes a preparation of the project of work plan of Board of governors;

5.3.2 Performs reception of requirements and forwarding the notifications on calling of a meeting of Board of governors;

5.3.3. Performs mailing of voting bulletins, documents and materials for meetings of Board of governors according to point 7.11 and 7.12 of this Provision;

5.3.4 Implements a reception of the filling voting bulletins filled with members of council;

5.3.5. Records meetings of Board of governors and prepares the mintues of protocols ,according with results of a vote by mail-in ballots;

5.3.6. Implements other responsibilities, according with the present Provision, internal documents of the Company and orders of the chairman of the board of governors.

5.4. The date of receipt by the secretary of Board of governors of the documents and materials provided by the present Provision is the date of their representation in Board of governors.

Section VI

6. Work plan of Board of governors

6.1. Meetings of Board of governors are held based on its work plan, not later than one per quarter. Work plan of Board of governors is formed according to proposals of the chairman and vice-chairman of Board of governors, members of council of managing directors, board, the chairman of the board, audit committee and the company auditor.

6.2. Proposals to the work plan of Board of governors the forthcoming year are made no later than January 15.

6.3. The offer on inclusion of a item in the work plan of Board of governors shall consist of:

6.3.1 Information on the person (organization) which offers the proposal;

6.3.2. The wording of the question (questions) offered for consideration of Board of governors;

6.3.3 Explanatory materials to questions;

6.3.4 The offered terms of consideration of a question;

6.3.5 The signature of the person (the head of the body) which made the offer.

6.4 Control of preparation of the work plan is implemented by the chairman of the board of governors.

6.5 . The work plan is subject to approval by Board of governors on representation of the chairman of the board of governors.

Section VII

7. Calling of meetings of Board of governors

7.1. The meeting of Board of governors is convened by the chairman of the board of governors according to the approved work plan of Board of governors, as well as on its own initiative, upon the demand of the member of council of managing directors, board, the chairman of the board, audit committee or the company auditor.

7.2. The shareholders (shareholder) who are in total owners at least than one percent of voting shares of the Company have the right to require convocation of a meeting of Board of governors of the Company

7.3. The requirement about holding a meeting of Board of governors shall contain:

7.3.1. Information on the person (body) which imposed requirement;

7.3.2 The question wording of the agenda of a meeting;

7.3.3. Propensity of statement of the matters;

7.3.4 Documents and other materials necessary for consideration of questions;

7.3.5 The signature of the person (the head of the body) requiring the call of a meeting; the statement of safekeeping account of shareholder which requires the calling of general meeting.

7.4. The person, introduced the requirement can offer date of convocation of a meeting of Board of governors and the project decision on an appropriate question of the agenda.

7.5. The requirement about convocation of a meeting containing date of convocation of a meeting is shown in Board of governors not later than 15 calendar days before the offered date, except for requirements for questions of top priority.

7.6. Within 5 calendar days from the date of a submission of demand about the call of a meeting of Board of governors, the chairman of the board of governors takes one of the following decisions:

7.6.1 About convocation of a meeting of Board of governors (inclusion of an issues in the agenda of the regular meeting) within 15 calendar days if the legislation didn’t establish other term for decision making on the brought question;

7.6.2 On rejection in convocation of a meeting as well as informs about it to the members of Board of Governors, to the chairman of the board of the Company and the person (the head of body) which imposed requirement

7.7. The chairman of the board of governors has the right to refuse convocation of a meeting of Board of governors if the matter is proposed by the unauthorized person or isn’t within the competence of Board of governors, and also if the requirement about convocation of a meeting of Board of governors doesn’t contain data, the stipulated in acts 7.3.1-7.3.6 presents provision.

7.8. The chairman of the board of governors according to the Law of the Republic of Uzbekistan „About joint-stock companies and protection of shareholder rights” is obliged to convene meetings of Board of governors:

7.8.1 For consideration of proposals of shareholders on adopting issues in the agenda of the annual General shareholder meeting and promotion of candidates for governing bodies and control of the Company;

7.8.2. For taking decision on calling of the annual General shareholder meeting and decisions on other questions related with its calling and holding, provided by the Law of the Republic of Uzbekistan „About joint-stock companies and protection of shareholder rights”, the Company charter and Regulations on General meeting of shareholders of the Company;

7.8.3 For approval of the annual statement of the Company;

7.8.4 For calling of extraordinary General shareholder meeting concerning election of new structure of Board of governors and/or forming of board of the Company.

7.9 The agenda of the regular meeting of Board of governors is formed and affirms the chairman of the board of governors on the basis of the work plan of Board of governors, and also requirements of persons (bodies) about convocation of a meeting which arrived according to the current legislation and this Provision.

7.10 .The project of the agenda, not later than 10 calendar days before date of a meeting is forwarded to the Chairman of the board of the Company and in the absence of his offers after 3 calendar days from the date of the direction of the project of the agenda approved to the chairman of the board of governors.

7.11. Not later than 5 calendar days before date of a meeting of Board of governors the chairman of the Board of governors forwards to all members of Board of governors the inundated written notice of calling of a meeting of Board of governors with indication of:

7.11.1 Dates, the place and time of a meeting (in case of holding a meeting in presentia);

7.11.2 The list of the persons invited to a meeting (in case of holding a meeting in presentia);

7.11.3 Issues of the agenda of a meeting.

7.12. Are applied to the notification:

7.12.1 The projects of solutions of Board of governors;

7.12.2 Reasons for need of adoption of the proposed solution;

7.12.3. Documents and other information materials;

7.12.4. A voting bulletin (in case of holding a meeting by correspondence voting) with indication of date of representation in Board of governors of the filled bulletins.

7.13. Written notices forwards to the members of council of managing directors by means of post, fax, cable, teletype, electronic or other means of communication.

7.14. The project decision of Board of governors and confidential materials, containing the information on commercial or professional secrecy are submitted for consideration of Board of governors with a signature stamp „confidentially”.

8. Procedures of Board of governors’s meeting.

8.1. The quorum for holding a meeting of Board of governors is determined by the Company charter, but there shall be at least 75% of the quantitative List of members of Board of governors.

8.2. In case the number of members of Board of governors is less than 75% of the quantity mentioned by the Charter, the Company becomes obliged to inform the Government of the Republic of Uzbekistan on lack of quorum.

8.3. Decisions at a meeting of Board of governors of the Company are taken by a majority vote attendees, except cases of, according to this provision, the legislation or the company charter mentioned, other order of taking decision.

8.4. In case of the solution of issues at a meeting of Board of governors of the Company each member of council of managing directors possesses one voice.

8.5. Concerning the agenda, on decisions which are accepted by a simple majority vote, at the indicating availability of quorum and results of vote concerning the agenda the written opinion of the member of council of managing directors ,not present at a meeting, can be considered if at the same time following terms and conditions are complied:

8.5.1 The written opinion of issue is received by Board of governors before starting the meeting;

8.5.2. The member of council of managing directors unambiguously determined the line item by a question, having specified in written opinion pro or contra, he votes according to the offered project decision, or „abstained” from taking decision.

8.6. The written opinion containing amendments and clauses according to the offered project decision isn’t subject to be accounted at the determination of quorum and results of vote. If amendments to the project decision are made at a meeting of Board of governors, the written opinion is also not subject to be accounted at determination of quorum and results of vote.

8.7 If the written opinion is not forwarded to members of Board of governors together along with the notification on a meeting, the chairman discloses written opinion at a meeting.

8.8 Written opinions are considered at the determination of quorum and results of vote on each question separately that is reflected in the minutes.

8.9. At the determination of quorum and results of vote on questions which solution requires a qualified majority of votes or unanimity accounting of written opinions isn’t allowed.

8.10. Decisions of Board of governors, regarding to the following questions are taken unanimously by members of Board of Governors:

8.10.1 on the removal at consideration of General shareholder meeting, and it is equal about inclusion in the agenda of General meeting of shareholders of questions of reorganization of the Company or about liquidation of the Company and appointment of liquidation commission;

8.10.2.Making amendments and additions to the company charter related with increase in an authorized fund (authorized capital) in the Company and reduction of number of the announced shares of the Company;

8.10.3.The decisions made by correspondence voting (polling);

8.10.4. Issuing the corporate bonds including converted into shares;

8.10.5. Decisions on transactions in the cases which are mentioned at chapters 8 and 9 of the Law of the Republic of Uzbekistan „About joint-stock companies and protection of shareholder rights”;

8.11. On the following questions decisions of Board of governors are made by the majority in three quarters of the voices (the qualified majority) which are taking part in vote of members of council of managing directors:

8.11.1. On refusal of calling the extraordinary General shareholder meeting;

8.11.2. Om rejection of inclusion of a item in the agenda of General shareholder meeting or the candidate for the list of candidates for vote at elections to Board of governors and audit committee of the Company.

8.12. Members of council of managing directors shall participate in meetings personally. The managing representatives of council of managing representatives in a meeting of Board of governors with the right of an advisory vote is allowed.

8.13. The member of council managing shown willingness to take part at a meeting in the mode of a video conferencing shall in two days prior to date of a meeting notify the chairman of the board of governors.

8.14. Each member of council of managing directors possesses one voice. Transfer of a voting power by the member of council of managing directors to the other person, including other member of council of managing directors, isn’t allowed.

8.15. In case of equality of votes of members of council of managing directors the voice of the chairman of the board of governors is decisive.

8.16. The vice-chairman of Board of governors or other member of council of managing directors performing functions of the chairman of the board of governors in his absence at meetings of Board of governors have no rights of a casting vote.

Section IX

Procedures of absentee balloting.

9.1. Decisions of Board of governors might be taken by means of correspondence voting (polling) by all members of Board of governors unanimously.

9.2. The decision on holding an absentee voting is taken by the Chairman of the board of governors.

9.3. For holding an absentee voting to all members of Board of governors , the notifications on holding an absentee voting meeting the requirements of points 7.11 go., 7.12. and subparagraphs 7.11.1. — 7.11.3, 7.12.1. — 7.12.4. of current Provision.

9.4. Voting bulletins shall contain specifying for date of submission of the completed bulletin in Board of governors.

9.5. Notifications on holding an absentee voting forwards to members of Board of governors not later than 5 calendar days before the established date of submission of the filled bulletin to Board of governors.

9.6. The filled voting bulletins and with signed in person by members of Board of Governors are represented to the secretary of Board of governors.

9.7. At the counting of votes, voices of members of Board of Governors provided at the scheduled time the filled voting bulletin are considered.

9.8. At voting, voices on matters on which only one of possible options of left voting are set off. The voting bulletins filled incorrectly of the specified requirement are recognized invalid and voices on the items containing in them aren’t counted. If the voting bulletin contains several questions placed to the vote, non-following with the requirement specified in this point concerning one or several matters doesn’t involve recognition of a voting bulletin and invalid in general.

9.9 Following the results of an absentee voting the minutes of Board of governors are formed.

Section X

The procedure of Board of Governors’ registering decision

10.1. At a meeting of Board of governors the secretary records the minutes.

10.2. The minutes of Board of governors are registered no later than 10 calendar days from the date of holding a meeting.

10.3. In the minutes are mentioned:

10.3.1. date, place and time of its holding;

10.3.2. The persons, participating at a meeting;

10.3.3. An agenda of a meeting;

10.3.4. The matters placed to the vote, and voting results on them;

10.3.5. The taking decisions.

10.4. In case of acceptance by Board of governors of decisions are specified by an absentee voting in the minutes (absentee voting):

10.4.1. The date of preparing the minutes;

10.4.2. The members of Board of governors provided the signed voting bulletins to this date;

10.4.3. The agenda;

10.4.4. The issues, placed to the vote, and voting results on them; 10.4.5. the taken decisions.

10.5. The minutes (absentee voting) are made out no later than 10 calendar days from the date set for submission of the filled bulletins.

10.6. The minutes of Board of governors are signed by the members of Board governors of Company participating in a meeting who bear responsibility for correctness of recording minutes.

10.7. The minutes of Board of governors are also considered signed by all members of board of governors, at the presence of signed bulletins which is an integral part of the minutes and entered upon the record. In this case the mintues is signed by the chairman and the secretary of Board of governors.

10.8. The minutes of Board of governors are transferred for execution to Board of the Company in day of its signing. In case of taking the decision information by Board of governors of the Company, on calling of general shareholder meeting about this decision is consigned to Board of the Company in day of holding this meeting.

10.9. Protocols of meetings of Board of governors are represented to audit commission and the auditor of the Company on their requests.

Section XI 

The rights and obligations of members of Board governors.

11.1. The members of Board of Governors have the right:

11.1.2. to receive all necessary information on activities of the Company and plans of its development for a certain period of time;

11.1.3. to receive remuneration and (or) compensation for expenses for work in Board of governors in the order established by the legislation and internal documents of the Company;

11.1.4. Other rights stipulated by the legislation and company charter.

11.2. Responsibilities among members of Board of Governors are split by the chairman of the board of governors specifically for each member of Board of Governors.

11.3. Members of Board of Governors at the implementation and fulfillment of duties shall act for the benefit of the Companies honesty and reasonably, not to disclose the confidential information and documentation of the Company which is an official or trade secret.

11.4. Members of Board of Governors shan’t use the powers and the acquired information on activities of the Company in private interests, and also shall not allow their use in private interests by other persons.

11.5. Members of Board of Governors are obliged to participate in meetings of Board of governors personally. If presence at a meeting is impossible, the member of council of managing directors notifies about it to Board of governors with indication of the reasons. At the same time the member of Board of Governors has the right to forward the written opinion concerning the agenda according to this Provision.

11.6. The member of Board of Governors, which is the affiliate obliged to inform the Company on the affiliation in making of the transaction by forwarding the written notice with detailed specifying of data on the expected transaction, including data on the persons participating in the transaction, a subject of the transaction, essential conditions of the relevant agreement.

11.7. The above mentioned members of Board of Governors has no right to participate in discussion and has no right to vote in case of acceptance by Board of governors of the Company of the decision according to this transaction.

11.8. Acknowledging the member of of Board of Governors by the affiliate in making of the transaction by the Company is performed according to requirements of Chapter 9 of the Law of the Republic of Uzbekistan „About joint-stock companies and protection of shareholder rights” on their requests.

Section XII

Responsibilities of Board of Governors

12.1. Members of Board of Governors of Company in case of executing of the rights and accomplishment of the obligations shall act for the benefit of the Companies and bear responsibility to the Company according to the legislation and the company charter.

12.2. If several individuals bear responsibilities, their joint and several obligations are to the Company.

12.3. The members of Board of Governors who didn’t participate in vote or vote against the decision which caused the Company losses don’t bear responsibility.

12.4. The company or the shareholder (shareholders), owning at least one percent of the placed shares of the Company having the right to take a legal action with the claim to the member to Board of governors about indemnification, caused to the Company.

Section XIII

The Committees (working team) of Board of Governors

13.1. Board of governors of the Company has the right to create temporary and permanent committees (working groups) on appropriate issues, including for identification and the solution of conflict situations for the purpose of ensuring acceptance of reasoned and effective solutions.

13.2. The main functions of committees (working groups) are preliminary comprehensive study of the questions which are within the competence of Board of governors of the Company in the activities and preparation of recommendations for Board of governors.

13.3. Committees (working groups) of Board of governors of the Company consist of number of members of council of managing directors, Board, the staff of the Company and the involved experts (specialists of the corresponding profile, teachers of profile HIGHER EDUCATION INSTITUTIONS, etc.). The order of functioning and power of committees (working groups) are established by the solution of Board of governors of the Company on their creation.

13.4. The working groups of Board of governors of the Company are formed for studying of separate activities and projects of the Company.

13.5. Committees and working groups work according to requirements of the legislation of the Republic of Uzbekistan, the charter and domestic situations of the Company, and also decisions of general shareholder meeting and Board of governors of the Company.

Section XIV

Concluding Provisions

14.1. The current Provision shall take effect on the date of its approval by General shareholder meeting.

14.2. In case of one of this provision rules became invalid; this rule isn’t the reason for suspension of other rules.

14.3. If the existing legal acts of the Republic of Uzbekistan or the company charter established other provisions, than it is provided by this Provision, then the rules of the existing legal acts of the Republic of Uzbekistan and the company charter are applied.

Last change: 26.12.2016