Mechel Announces Decisions of Shareholders’ Meeting And Board Of Directors

JSC Mechel announces that an Extraordinary General Shareholders’ Meeting and a meeting of the Board of Directors were held today.

At the meeting, the shareholders agreed to approve the “Bylaw on the collegial executive body (Management Board).” The creation of the Management Board allows the shareholders and the company’s management to take decisions after corporate discussion of the most important matters with the members of the Management Board and to mind their opinion.

The shareholders also approved additions into the Charter of Mechel OAO in terms of the creation of the Management Board, and also approved a new edition of "Bylaw on the Sole Executive Body (CEO)" which differentiates authorities between CEO and Management Board.

The shareholders also approved a number of transactions of interest. This approval was done in accordance with the legislation requirements and it refers to internal guarantees for credits of Mechel’s subsidiaries which the subsidiaries can take. The maximum guaranteed amount under the transaction for one borrower is RUR 29 bln.

The nine persons were proposed as members of the Management Board at a meeting of Board of Directors that was held right after the General Shareholders\' meeting. The approval of the members of Management Board will take place at the next meeting of Board of Directors.

The Board of Directors also approved the membership of acting Committees: Audit Committee, Appointment and Remuneration Committee, and the Investment and Strategic Planning Committee, which consists of the following subcommittees – strategic development of metallurgical production, strategic development of mining production, economy and finance.