OREANDA-NEWS. The new membership of the Board of Directors of OJSC RUSNANO met for the first time and unanimously elected Vladislav Putilin as Board Chairman. The new Board membership was approved by Order № 665-r of the Federal Property Agency, “On resolutions of the Annual General Meeting of Shareholders of Open Joint Stock Company RUSNANO”, dated 30 June 2014.

The BoD approved an additional agreement to the agreement on transfer of chief executive powers in respect of OJSC RUSNANO to RUSNANO Management Company LLC. In particular, the additional agreement stipulates that the Board of Directors of OJSC RUSNANO carries out a quarterly review to confirm the size of commissions for success and their payment following project exit.

The additional agreement also includes a number of changes concerning the division of costs between RUSNANO and the management company. In particular, RUSNANO Management Company LLC bears the cost of operations by RUSNANO's governing bodies and costs for operation of its fire safety, information and telecommunication, and other systems. The list of costs that RUSNANO bears alone has also been extended to include remuneration for the services of the RUSNANO share registrar.

The additional agreement was approved by the Board of Directors of RUSNANO due its status as a transaction in which a number of members of the boards of directors of both companies (OJSC RUSNANO and RUSNANO Management Company) have an interest.

The Board of Directors of JSC RUSNANO took note of the termination of the Company's participation in the investment project “Modernization and expansion of production of high-purity silicon concentrate and silicon powder for the nanoelectronic, optical, lighting and chemical industries”. Withdrawal from the project was justified by non-fulfilment of previously agreed transaction terms on the part of co-investors.

The Board of Directors of JSC RUSNANO heard a report on costs incurred by RUSNANO Management Company in the first and second quarters of 2014. As mentioned above, RUSNANO is obliged by the agreement on transfer of executive powers to reimburse RUSNANO Management Company LLC for costs incurred by the latter in fulfilment of its management responsibilities. There were no reimbursable expenses during the relevant period.

The Board also heard a report on progress in execution of JSC RUSNANO's financial plan for 2014, which was approved by the Company's Board of Directors in April this year. Certain figures in the plan have been adjusted. Specifically, target revenues from project activities and from placement of free cash have been increased by 1.9 billion and 1.8 billion rubles, respectively.

The RUSNANO Board heard a report on measures being taken and planned for management of risks associated with the Company's long-term business plan. A risk assessment methodology has already been implemented in order to improve the monitoring and management of portfolio companies and investment funds. A set of measures is also being implemented to enhance the current investment portfolio.

The RUSNANO Board of Directors approved a revised version of the statute on remuneration and compensation paid to members of RUSNANO BoD committees (the HR and Remuneration Committee, Strategy Committee and Audit Committee) and also to members of the BoD Scientific and Technical Council.

The Board meeting also heard updates on progress in previously approved projects:

Competitive, high-tech domestic production of modified layered nanosilicates, masterbatches and a new generation of polymer nanocomposite materials

MRAM: production of magnetoresistive RAM in Russia

Russian membranes: modern production of nanostructured membranes and separation modules using such membranes

Development of a new method for diagnosis of blood clotting disorders.

In order to facilitate interaction between RUSNANO, the Federal Property Agency, federal executive bodies and the representatives of federal government in the management bodies of RUSNANO with respect to issues of state property management, the RUSNANO BoD recommended the General Meeting of Shareholders to approve a revised version of the statute concerning action by RUSNANO's chief executive entity with respect to information interaction through the interagency portal for the management of state property.