In connection with the entry into force as from 01 January 2008 of Best Practices of Companies Listed at the Warsaw Stock Exchange, implemented pursuant to Resolution No. 12/1170/2007 of the Supervisory Board of the Warsaw Stock Exchange of 04 July 2007 we are obliged to apply them. On 02 January 2008 with our Current Report No. 3 /2008, we notified about the corporate governance principles that we would not apply on a permanent basis, namely:
Part II Rule 1 item 6 – as there are no separate committees of the Supervisory Board, the annual report of the Supervisory Board as published on our Website will not provide for operation of those committees,
Part III Rule 6 – no two independent members of the Supervisory Board as decided by the shareholders.
Until 23 July 2009, the following rules were not applied:
Part III Rule 7 – no audit committee with minimum one independent member,
Part III Rule 8 – as there are no committees in the Supervisory Board, it is impossible to describe the operations of such committees.
On 23 July 2009, the audit committee with one independent member was appointed. The manner of the audit committee operating complies with the mentioned above requirements. No other committees were appointed.
Furthermore, as of 30 September 2009, temporarily we were still not applying the following principles:
Part II Rule 1 item 12 – we did not specify the forecast expenses to be incurred by the Company in connection with the incentive program.
Part III Rule 2 in connection with Part II Rule 1 item 11 – on our Website we were not publishing information on relations of members of the Supervisory Board with a shareholder representing minimum 5 % votes as we had not received respective statements from some of the members of the Supervisory Board,
We also did not ensure that from 1 January 2009 our website would function in English, also in the scope defined in part II item 1 of Best Practices of Companies Listed at the Warsaw Stock Exchange (temporarily until the website in English had been prepared).