Corporate Governance System
The Bank Board of Directors and Management Board pay significant attention to implementing an appropriate system of corporate governance, improving its structure, as well as adherence to the basic principles of corporate governance. Each year a significant portion of Russian financial institutions show interest in improving methodology of bank management quality level and risks control.
PSCB, OJSC becoming a participant of the ‘Russia Banking Corporate Governance Project’ implemented recommendations of the International Finance Corporation (IFC, member of the World Bank Group) and brought the Bank Charter and internal documents in compliance with the best international practice in the field of corporate governance, introduced changes into the Bank organizational structure.
The Bank Board of Directors is mainly responsible for an appropriate system of corporate governance. The following committees are under its immediate supervision: Audit and Risks Committee, Strategic Planning Committee Appointments and Compensations Committee.
Activity of the Committees provides for the most efficient operation of the Bank, risks supervision and management and effective settlement of the Bank strategic, security and reliability issues, issues of efficient managing and supervision. As the result of corporate governance system improvement the Bank managed to make transparent strategic issues structure, to publish the structure of the share capital, disclose information about business reputation of the Members of the Board of Directors and of the Management Board. The Bank internal documents reflected the real distribution of functions between management bodies. Unjustified interventions into the Bank activities on the part of affiliated parties, as well as excessive involvement of the Board of Directors into the Bank operative control were removed thus terminating situations when strategic issues and objective evaluation of the Bank activity paled into insignificance on the one part, and managing bodies were deprived of required authority to execute its functions and didn’t bear any responsibility for results of their action on the other part.
In December 2007 PSCB, OJSC and Central Moscow Securities Depository, OJSC signed a cooperation agreement following which provisions the Bank transferred shareholders register to a specialized independent registrar. That decision was taken by the Board of Directors of the Bank and complies with the well-established international standards.
