OREANDA-NEWS. On June 25, 2007 general meeting of PJSC Azovstal Iron and Steel Works shareholders took a decision to change the managing board structure of the Company, reported the press-centre of  PJSC Azovstal Iron and Steel Works.

Shareholders decided to recall SCM (System Capital Management) Limited from the Azovstal Supervisory Board and introduce "MetalUkr Holding Limited" (Cyprus) as a member of the Supervisory Board of the Joint Stock Company.

“Entering of "MetalUkr Holding Limited" to the Supervisory Board means finalization of Azovstal authority transfer from SCM Company to Metinvest Holding Ltd”., said the Director of Steel and Rolled product Division Igor Korytko.

Transferring the managing authority and the right to hold the shares of SCM mining and steel making enterprises to Metinvest Company, is performed within the frame of SCM business restructuring, and aimed to increase business transparency.

Also shareholders decided to decrease the statutory fund by cancellation of Azovstal own simple nominal shares, that were bought earlier and those ones that were received during the Company reorganization process after CJSC “Trade House Azovstal” annexation. The statutory fund in total will be reduced by 1 427 509 285 shares (up to 4 194 295 728 pieces), and it will amount 1 048 573 932 UAH. Liquidation of such amount of shares is connected with finalizing of Trade House annexation to the Steel Works, along with a simplification of share capital structure of the enterprise and increase of business transparency.

Trade House “Azovstal” annexation process to Azovstal Iron and Steel Works was performed considering the interests of minor shareholders that prove a high level of corporative social responsibility of Metinvest.

Another decision that was made by the shareholders meeting of Azovstal Iron and Steel Works was to not distribute the remaining Company profits for 2005 and 2006. In 2006 Azovstal received the profit at the amount of 1 103 163 200. 00 UAH, it shall be distributed the following way: 55 158 160.00 UAH shall be set aside for buck up fund of the Company; remaining profit for 2006 at the amount of 1 048 005 040.00 UAH shall be left undistributed and remaining profit for 2005 at the amount of 1 103 045 950.00 UAH shall be left undistributed.

“In the near future Azovstal will continue to reinforce a comprehensive program of production process modernization that covers all the conversion stages,” said Dmintry Livshits, the Director General of Azovstal, “that is why the shareholders made the only right decision - to send funds at the amount of more than 2 billions UAH for further steady development of the enterprise and strengthening of its leadership positions at the world steel market”.

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Public Joint Stock Company "Azovstal" Iron & Steel Works is a modern high-tech enterprise, which produces a wide range of steel products. According to industrial rating, PJSC "Azovstal" Iron & Steel Works is among three top Ukrainian steel companies, producing iron, steel and rolled products.

PJSC "Azovstal" Iron & Steel Works is a part of Metinvest Group, which performs the strategic management of SKM Group’s mining and steelmaking business. Management Company of Metinvest Group is Limited Company "Metinvest Holding".