Shareholders approved the annual report on the company’s activities in 2005 prepared to Russian accounting standards. A decision was taken not to pay dividends on common shares, while a preferred stock dividend payout for 2005 was approved in the amount of 12% of par value.
In addition, shareholders were informed about the preliminary unaudited financial results of the company prepared to international financial reporting standards. Sales in 2005 reached $666.1m, operating profit stood at $37.7m and EBITDA rose to $59.4m.
The number of board member was approved at nine and the following members were elected to the OMZ’s board of directors: Seppo Remes, president, Kiuru Partners (independent director); Sergey Skaterschikov, president, IndexAtlas Ltd., director; Dresdner Kleinwort Wasserstein (independent director); Dmitry Bakatin, managing director, Moscow Representative Office of “Sputnik Investment Ltd.” (Independent Director); Sergey Lipsky, chief executive officer, OMZ (executive director); Sergey Grischenko, director, Corporate Finance Department, ZAO AB “Gazprombank” (non-executive director); Ilya Eliseev, deputy chairman of the management board, ZAO AB “Gazprombank” (non-executive director); Alexey Matveev, deputy chairman of the management board, ZAO AB “Gazprombank” (non-executive director); Vladimir Smirnov, general director, OAO “Tekhsnabexport” (non-executive director); Vladimir Yurkov, general director, ZAO “Forpost-Management” (non-executive director).
Shareholders voted to release from obligation ZAO “Forpost-Management” (Forpost) to make an offer to shareholders to buy their holdings of common shares upon Forpost accumulating a 30% holding in the company (including a release from the obligation to make such offer upon reaching each 5% incremental threshold above the 30% holding).
The release from this obligation was requested in relation to Forpost’s intention to acquire up to 95% of the common shares of OAO OMZ (Uralmash-Izhora Group). Forpost currently holds 19.93% of the common shares of OMZ.
Shareholders approved the compensation of the board members for their service in the 2005-2006 period as well as the provision on the compensation of the members of the board of directors for the 2006-2007 period.
In addition, they elected a three-member revision commission, approved possible future interested party transactions, executed by the company in the course of its day-to-day operations and approved PriceWaterhouseCoopers as the company’s statutory and IFRS accounts auditor for 2006.
