OREANDA-NEWS. August 28, 2008. The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, reports that it has sent a proposal on the election of independent directors to the Board of Directors of the Depository Clearing Company (DCC) CJSC to RTS Stock Exchange OJSC, another DCC shareholder. This initiative was originally proposed by NDC representatives at a meeting of the DCC Board of Directors held Aug. 19.

Sergei Lykov, Chairman of the Board, NDC, said: “Election of independent directors will contribute considerably to increased transparency and improve the quality of decisions made by the Board, in particular decisions related to development strategy and control over DCC managers’ actions. Moreover, the existence of independent directors on DCC’s Board will provide a necessary means of balancing the interests of various groups of shareholders. In general, such a step corresponds with new approaches and principles which now are being implemented by the state in corporate governance practices, and also with efforts aimed at formation of developed infrastructure of the stock market which is in line with the program for the formation of an international financial center in Russia.”

NDC proposed to the establishment of a Committee on Appointments to implement the initiative. The Committee would develop the qualification requirements for independent directors, define the criteria for independence, search and select candidates and present the selected candidates to the Board of Directors for further recommendations to the company’s shareholders. The Committee would also make suggestions on associated amendments to DCC’s Charter. After approval of the appropriate Charter amendments, NDC’s proposal calls for the formation of a new Board which will include independent directors.

NDC is a leading shareholder in DCC, with a stake in authorized capital scheduled to reach 37.29% once a new DCC share issue is officially registered. Five candidates proposed by NDC were elected to DCC’s Board in 2008.