Principle of operation

Basic principles of the Company activity are the observance of  the necessary requirements of the present legislation, attention to the faultlessness of the juridical side of the activity,  information  openness and constant perfection of the corporate management system.

Observance of the Legislations

Corporate policy of  JSC «The Seventh Continent» is based on the strict observance of “Regulation of competition and limitation of the monopolistic activity in trade markets”, federal law “Securities market” and normative acts about Securities market.

Informational Clarity

Informational openness and clarity of the Company- one of the main principles of JSC “The Seventh Continent” work. The observance of such principle became even more important because of the Company listing on the stock exchange in 2004.  In order to create an atmosphere of trust in the operations of the Company informing interested groups (shareholders, partners, community) JSC “The Seventh Continent” is constantly publishing key financial indexes and information about the activity of the Company in bare (accessible) sources (press-releases, corporate publications, on corporate websites). Facts and events, which can influence the cost of JSC “The Seventh Continent” shares are reflected in messages, that are part of news line of informational agencies “Interfax” and “AKM”. Company provides well-timed disclosure of full firsthand information about its activity in the newspaper of Moscow government “Tverskaya, 13”, appendix to the “Bulletin of FSFR of Russia” and corporate website www.7cont.ru

Financial activity

Annually JSC «The Seventh Continent»  prepares report of the activity results, composed according to the Russian standards of financial reporting. Since 2003 the Company also has been preparing annual financial report according to the International standards of financial  Reporting ( ISRF).

Protection of shareholders interests

Protection of shareholders interests is important part of the corporate policy of the Company. In 2004 Company, in order to protect the interest of  shareholders, gave a list of shareholders for safe-keeping and maintenance to a professional participant of the stock exchange market. To protect the interests of shareholders in 2004 a package of internal documentation was developed which regulated the activity of the Company:

Corporate behavior codex

• Regulations of  The General Meeting of shareholders of JSC “The Seventh Continent”
• Regulations of The Board of Directors of JSC «The Seventh Continent»
• Regulation of The Audit commission of JSC «The Seventh Continent»
• Regulation of audit committee of The Board of Directors of  JSC «The Seventh Continent»
• Regulation of internal control of financial and economic activity of  JSC «The Seventh Continent»
• Regulations of JSC «The Seventh Continent» of using the information of the Company, of the securities of the Company and any securities transactions. This information is not open to public and the disclosure of it can cause a sufficient effect on the market price of Company’s shares.

Management of the Company is conducted by the Board of Directors of the Company.

Consistent observation of the corporate principles, adopted by JSC “The Seventh Continent”  allows to realize one of the main competitive advantages of the public Company in the conditions of retail market development: JSC «The Seventh Continent»  is one of the few retail companies in Russia, that observes the principles of the business clearness.