Corporate Governance is, on the one hand, a collection of principles of ethical business conduct and, on the other, a set of rules serving to establish a balance between the interests of all capital market participants involved in the operation of companies.
The so-called Best Practices comprise standards designed to promote corporate integrity and bring corporate supervision in line with the EU standards.Corporate Governance Principles Applied by Grupa LOTOS S.A.
Grupa LOTOS S.A. takes care to build its investor relations based on the principles of partnership and mutual satisfaction. The key objectives behind the Corporate Governance Principles applied by Grupa LOTOS S.A. include:
- transparency of the Company’s operations as a listed company,
- mutual trust in its relations with the Stakeholders,
- openness and consistent creation of the Company’s shareholder value.
From its initial public offering in June 2005, Grupa LOTOS S.A. implemented a majority of the recommendations contained in the document Best Practices in Public Companies and since the beginning of 2008 it has followed Best Practices for WSE Listed Companies along with the amendment dated October 19th 2011.
From January 1st 2016 Grupa LOTOS S.A. is applying the Code of Best Practice for WSE Listed Companies as amended by the WSE.
Best Practices 2016 - Best Practices for GPW Listed Companies 2016
In accordance with the new disclosure requirements, the Company reports non-compliance with any of the above principles as a non-recurring incident or on a permanent basis. Such reports are published in the same manner as the Company’s current reports and posted in two language versions in the investor relations section of the Company’s website.
Corporate Governance reports
Reports released pursuant to Art. 29.3 of the Rules of the Warsaw Stock Exchange:
EBI Report No. 1/2013
Furthermore, concurrently with its annual reports, Grupa LOTOS S.A. publishes its reports on application of the Corporate Governance Principles.
History of Best Practices in Poland
The idea to create a set of Corporate Governance standards in Poland first appeared in the late 1990s, inspired by similar codes adopted by more mature western capital markets and consultations among the various groups of professionals involved in the Polish capital market, including lawyers and economists.
For that purpose, in 2001 the Warsaw Stock Exchange set up the Best Practices Committee.
In autumn 2002, the first key principles of business ethics were compiled in the document entitled Best Practices in Public Companies, implemented by the Warsaw Stock Exchange. The document defined the best practices of General Shareholders Meetings, Supervisory Boards, Management Boards and the best practices in relations with third parties.
Subsequently, in 2005—2007 the document Best Practices in Public Companies 2005, modified as a result of practical experience, discussions and recommendations offered by the European Commission, was considered the applicable set of Corporate Governance guidelines for companies aspiring to build strong relations with shareholders in the long-term perspective.
By virtue of a resolution of the Supervisory Board of the Warsaw Stock Exchange, dated July 4th 2007, its amended version entitled Best Practices for WSE Listed Companies was adopted and took effect on January 1st 2008. The following amendment dated May 19th 2010 was implemented as of July 1st 2010.
The Code of Best Practice for WSE Listed Companies in force from January 1st 2012 until December 31st 2015 was replaced by Best Practices 2016 - Best Practices for GPW Listed Companies 2016 on January 1st 2016.