CORPORATE GOVERNANCE

CORPORATE GOVERNANCE

In implementing its growth strategy, Siboilgas strives to increase its shareholder value as well as achieve the highest standards of corporate governance. The Company is firmly convinced that these two aims are closely related. The commitment to a transparent and responsible business management is extremely important for maintaining investor confidence and, in the long term, for guaranteeing the maximum return on investment to all our shareholders. Being the hallmark of the most renowned international corporations, efficient gov

ernance is an important indication of our success in the eyes of our foreign partners. We are convinced that conscientious governance benefits all stakeholders, including clients, suppliers, partners, employees and our Company’s shareholders. Siboilgas management will unswerving continue giving equal consideration to the interests of all shareholder groups of the Company. The transparency of financial reporting is yet another important element of corporate governance. Siboilgas has ample experience of drafting quarterly, semiannual and annual reports in compliance with the generally accepted accounting principles (US GAAP). In the future we intend to follow these practices. Our open joint stock company’s immediate objective designed to further improve our US GAAP reporting procedures is to continue reducing the time gap between the end of the reporting period and the publication date of financial performance indicators for the same period.

One of the most convincing proofs of practical application of the principles of strong corporate governance is the composition of the Board of Directors and its subcommittee. The members of Siboilgas Board of Directors are experienced leaders commanding great respect within the business community. In order to make discussions at the meetings of the Board of Directors more effective, the standing Board of Directors’ committees – the Committee for personnel and compensations, the Committee for strategic planning and the Audit Committee – provides advice on most important issues.

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