Key Corporate Governance Principles and Improvements in 2020
Our corporate governance framework and guidelines for its development take into account the major role that Rosneft plays in its domestic and export markets. The Company is committed to creating a favourable environment for effective cooperation with its shareholders,employeesand business partners.
Guiding Principles for the Company’s Governing Bodies
Governance and Control Structure
The Company operates a two-tier management model where management functions are split between the Board of Directors and executive bodies.
Board of Directors
The Board of Directors performs two key functions:
strategic management of the joint-stock company, which includes approving strategic documents and material transactions;
oversight of the executive bodies.
The law requires companies to have a sole executive body. At Rosneft, it is the Chief Executive Officer. In dealing with third parties, this person is authorised to act on behalf of the Company without a power of attorney.
Rosneft has established a collective executive body (Management Board) which is chaired by the Chief Executive Officer. Pursuant to the laws of the Russian Federation, the Management Board and its members (except for the CEO) are not authorised to enter into transactions or execute legal acts on behalf of the Company without a power of attorney.