The Board of Directors of Generation Company Four of the Wholesale Market of Power and Energy (OGK-4) has decided to convene an Extraordinary General Meeting of the Company's shareholders. The agenda included the issue regarding a reduction in the Company's authorized capital by decreasing the par value of OGK-4 shares. The Extraordinary General Meeting will be held by absentee voting. The deadline for the receipt of completed ballots is March 1, 2007. The shareholder register specifying shareholders entitled to vote at the EGM will be closed on January 24, 2007.
It is proposed that the Company's shareholders should decide on decreasing the OGK-4 authorized capital down to 19,652,250,389.6 rubles through a decrease in the par value of the placed shares. As a result, the par value of one registered ordinary share in OGK-4 is supposed to decrease from 1 ruble to 0.4 ruble.
The decrease in the OGK-4 authorized capital is conducted in pursuance of the Federal Law "On Joint Stock Companies." According to paragraph 5 of Article 35 of this Federal Law, if at the end of the second and each subsequent financial year the value of net assets of the company proves to be less than its authorized capital, the company shall declare a reduction of its authorized capital down to the amount not exceeding the value of its net assets.