Corporate governance

Corporate governance is a set of rules of behaviour addressed to companies’ bodies and members of such bodies as well as majority and minority shareholders. Corporate governance rules concern broadly understood corporate governance practices.

The first Polish corporate governance rules were prepared by the Best Practices Committee composed of representatives of different stakeholders on the capital market who drafted “The Best Practices of Public Companies 2002.” The rules were amended by “The Best Practices 2005” which are currently binding.

In late 2006, work was initiated to prepare a new set of best practices. The effort produced the draft “Best Practices of WSE Listed Companies” presented for public consultation in April 2007.

On 4 July 2007, the Supervisory Board of the Warsaw Stock Exchange adopted the corporate governance principles under the name Code of Best Practice for the WSE Listed Companies, which became effective on 1 January 2008 (Appendix to the Resolution of the Stock Exchange Council no. 12/1170/2007 of 4 July 2007).

The Best Practices include 4 sections:

I. Recommendations for Best Practices of Listed Companies;
II. Best Practices of Management Boards of Listed Companies;
III. Best Practices of Supervisory Board Members;
IV. Best Practices of Shareholders.

The document is available at the dedicated WSE website www.corp-gov.gpw.pl.

As a WSE-listed company KOGENERACJA S.A. is covered by this Code and publish the reports on the application of corporate governance principles:

Report on the application of corporate governance principles in 2008 - part of the Report of the Management Board on the Company’s Activities and Report of the Management Board on the Activities of the Group in 2008.

Report on the application of corporate governance principles in 2007 – Current Report 19 May of 2008.