MMK.L Regulatory News (MMK)

24 May 2013, Magnitogorsk Press release

MMK Announces Results of Annual General Shareholders' Meeting

Magnitogorsk Iron and Steel Works ("MMK", or "the Company") (LSE: MMK) today held its Annual General Meeting of Shareholders (AGM) in Magnitogorsk. The AGM approved MMK's annual accounts and financial statements for 2012 and resolved not to pay a dividend for the 2012 financial year (in consideration of the interim dividend paid for the first nine months of 2012). The AGM approved amendments and additions to the Company's Charter and ratified the revised Charter.

The AGM elected the Board of Directors of MMK. The new Board of Directors comprises Victor Rashnikov, President of LLC MMK Managing Company; Boris Dubrovsky, CEO of OJSC MMK; Vitaly Bakhmetyev, Deputy CEO for Commerce, OJSC MMK; Olga Rashnikova, Finance Director, OJSC MMK; and, Nikolai Lyadov, Deputy CEO for Sales, OJSC MMK. Also elected were five directors meeting the UK Corporate Governance Code's guidelines for independence: Sir David Logan, Chairman of the Council of Management at the British Institute at Ankara; Zumrud Rustamova, Deputy CEO of OAO Polymetal; Bernard Sucher, member of the Board of Directors of Aton Group; Peter Charow, Vice-President of BP Russia; and David Herman, Chairman of the Board of Directors of OJSC SOLLERS.

Alexander Maslennikov, Oksana Dyuldina, Galina Akimova and Andrei Fokin were elected as the members of the Audit Committee.

Shareholders approved the remuneration of the Board of Directors and members of the Audit Committee for 2013-2014. Payments to the Board of Directors during the period will total 65 million rubles, and payments to the Audit Committee will total 20 million rubles.

The AGM approved related-party transactions and also ratified documents regulating the internal corporate functions of MMK, including "Changes and Additions to the Regulations on the Audit Committee of MMK" and the "Regulations on the General Shareholders' Meeting of MMK".

After the AGM, the first meeting of the new Board of Directors of MMK took place, at which Victor Rashnikov was elected as Chairman.

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