PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Evaluation of the performance of the Board of Directors

G4 -44

The Company has established practice of evaluating performance of the Board of Directors as a whole, members of the Board of Directors and Committees of the Board of Directors. The evaluation is conducted on a regular basis at least once a year in the form of a formalized self-assessment procedure. Evaluation method is a survey of members of the Board of Directors regarding activities during their term of office as members of the Board of Directors of TATNEFT since their election in the corporate reporting year. The evaluation includes 50 criteria for 5 key components: competence and authority of the Board of Directors; composition of the Board of Directors; committees of the Board of Directors; procedures of the Board of Directors; annual General Shareholders’ Meeting.

In 2018, the self-assessment of the work of the Board of Directors was carried out for the corporate reporting year from June 2017 to May 2018.

The results of the self-assessment and its analysis were considered at the internal meeting of the Board of Directors (Minutes No. 12 as of April 24, 2018).

Based on the results of the self-assessment of the Board of Directors, the performance of the Board of Directors in the corporate reporting year was approved. Overall, it was noted that the Company’s corporate governance system conforms to the basic principles of the Code. Regarding some non-binding principles, the Company also adheres to established practice in accordance with the interests of the Company and its shareholders. The Company follows several principles of the Code according to historically established practice but without formalizing these principles. Draft amendments to the internal documents of the Company to give them formal shape are now in being elaborated by the Office of the Corporate Secretary in cooperation with the Corporate Governance Committee. It was also noted that the Company complies with additional provisions of international best practices for corporate governance.

At the same time, during the self-assessment by members of the Board of Directors, an opinion was expressed to further improve the procedures of the Board of Directors and corporate practices. The summarized comments regarding the activities of the Board of Directors were submitted to the Corporate Governance Committee and the HR and Remuneration Committee.

KEY COMPONENTS OF THE SELFASSESSMENT PROCEDURE OF THE BOARD OF DIRECTORS
Assessing the quality of work of the Board of Directors is aimed at determining the effectiveness of the work of the Board of Directors, committees and members of the Board of Directors, matching their work with the development needs of the Company, enhancing the work of the Board of Directors and identifying areas in which their work can be improved.