| Pursuant to Article 29.3 of the Rules of the Warsaw Stock Exchange, Milkiland N.V. presents the report on compliance with the detailed principles of the "Best Practice for GPW Listed Companies 2016" Disclosure Policy, Investor Communications I.Z.1.1. basic corporate documents, in particular the company’s articles of association; I.Z.1.2. the full names of the members of its management board and supervisory board and the professional CVs of the members of these bodies including information on the fulfilment of the criteria of independence by members of the supervisory board; The Company does not apply this principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors. The website currently does not include information on the fulfilment of the criteria of independence by members of the Board of Directors. The Company is in the process of improving of its corporate website and intends to publish the information in due course. I.Z.1.3. a chart showing the division of duties and responsibilities among members of the management board drawn up according to principle II.Z.1; The Company does not apply this principle. The Company is in the process of improving of its corporate website and intends to publish the chart in due course. I.Z.1.4. the current structure of shareholders indicating those shareholders that hold at least 5% of the total vote in the company according to information provided to the company by shareholders under the applicable legislation; I.Z.1.5. current and periodic reports, prospectuses and information memoranda with annexes, published by the company at least in the last 5 years; I.Z.1.6. information on the dates of corporate events leading to the acquisition or limitation of rights of a shareholder, information on the dates of publication of financial reports and other events relevant to investors, within a timeframe enabling investors to make investment decisions; Comments of the Company on the mode of application of the principle. Information on the dates of corporate events leading to the acquisition or limitation of rights of a shareholder and information on the dates of other events relevant to investors is published in the Company's current reports. I.Z.1.7. information materials published by the company concerning the company’s strategy and its financial results; Comments of the Company on the mode of application of the principle. Information concerning the company's financial results is published in the Company's annual reports. I.Z.1.8. selected financial data of the company for the last 5 years of business in a format enabling the recipient to process such data; Comments of the Company on the mode of application of the principle. The Company publishes full financial data in its periodic reports. The Company is in the process of improving of its corporate website and intends to publish the selected financial data in due course. I.Z.1.9. information about the planned dividend and the dividend paid out by the company in the last 5 financial years, including the dividend record date, the dividend payment date and the dividend amount, in aggregate and per share; The Company does not apply this principle. The Company is in the process of improving of its corporate website and intends to publish the information about the planned dividend and the dividend paid out by the company in the last 5 financial years in due course. I.Z.1.10. financial projections, if the company has decided to publish them, published at least in the last 5 years, including information about the degree of their implementation; Comments of the Company on the mode of application of the principle. The Company has not decided to publish projections so far but intends to comply with the rule if projections are published. I.Z.1.11. information about the content of the company’s internal rule of changing the company authorised to audit financial statements or information about the absence of such rule; The Company does not apply this principle. The Company does not have an internal rule of changing the company authorised to audit financial statements. The Company is in the process of improving of its corporate website and intends to publish information about the absence of such rule in due course. I.Z.1.12. a statement on compliance with the corporate governance principles contained in the last published annual report; The Company does not apply this principle. The Company's website currently includes a statement on compliance with the WSE Corporate Governance Code 2010. The Company is in the process of improving of its corporate website and intends to publish in due course a statement on compliance with the corporate governance principles contained in the last published annual report. I.Z.1.13. a statement on the company’s compliance with the corporate governance recommendations and principles contained herein, consistent with the information that the company should report under the applicable legislation; I.Z.1.14. materials provided to the general meeting, including assessments, reports and positions referred to in principle II.Z.10, tabled to the general meeting by the supervisory board; The Company does not apply this principle. Currently, the Company publishes current reports with draft resolutions to be voted on the general meeting. The Company is in the process of improving of its corporate website and intends to create a tab in which materials provided to the general meeting will be published. I.Z.1.15. information about the company’s diversity policy applicable to the company’s governing bodies and key managers; the description should cover the following elements of the diversity policy: gender, education, age, professional experience, and specify the goals of the diversity policy and its implementation in the reporting period; where the company has not drafted and implemented a diversity policy, it should publish the explanation of its decision on its website; The Company does not apply this principle. Although the company's Board of Directors and key managers are diversified in terms of gender, education, age, professional experience and nationality, the Company does not have a formal diversity policy and thus cannot publish such policy. The Company is in the process of improving of its corporate website and intends to publish in due course explanation of its decision not to prepare formal diversity policy. I.Z.1.16. information about the planned transmission of a general meeting, not later than 7 days before the date of the general meeting; The Company does not apply this principle. As explained in comments to rule IV.R.2, the Company does not intend to provide transmissions of general meetings. I.Z.1.17. justification of draft resolutions of the general meeting concerning issues and determinations which are relevant to or may give rise to doubts of shareholders, within a timeframe enabling participants of the general meeting to review them and pass the resolution with adequate understanding; Comments of the Company on the mode of application of the principle. The justification is provided in current reports containing proposed drafts of resolutions. There is no assurance that the Company will be able to receive and publish justification of draft resolutions proposed directly by shareholders. I.Z.1.18. information about the reasons for cancellation of a general meeting, change of its date or agenda, and information about breaks in a general meeting and the grounds of those breaks; I.Z.1.19. shareholders’ questions asked to the management board pursuant to Article 428 § 1 or § 6 of the Commercial Companies Code together with answers of the management board to those questions, or a detailed explanation of the reasons why no answer is provided, pursuant to principle IV.Z.13; Comments of the Company on the mode of application of the principle. The Company is incorporated under Dutch law so the mentioned regulations of the Polish Commercial Companies Code do not apply to the Company. However, the Company will comply with the spirit of the principle. I.Z.1.20. an audio or video recording of a general meeting; The Company does not apply this principle. The Company will not comply with the rule due to technical difficulties and significant costs of posting audio or video recordings on the corporate website. I.Z.1.21. contact details of the company’s investor relations officers including the full name and e-mail address or telephone number. I.Z.2. A company whose shares participate in the exchange index WIG20 or mWIG40 should ensure that its website is also available in English, at least to the extent described in principle I.Z.1. This principle should also be followed by companies not participating in these indices if so required by the structure of their shareholders or the nature and scope of their activity Zasada nie ma zastosowania. The Company's shares do not participate in the WIG20 or mWIG40 index. Nevertheless the Company's website is in English. Management Board, Supervisory Board II.Z.1. The internal division of responsibilities for individual areas of the company’s activity among management board members should be clear and transparent, and a chart describing that division should be available on the company’s website. The Company does not apply this principle. There is no management board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, including executive directors which perform the functions comparable to a management board in companies with two-tier corporate governance structure. The internal division of responsibilities for individual areas of the company’s activity among executive directors is clear and transparent. A chart describing that division will be published in due course on the company’s website nearest time. II.Z.2. A company’s management board members may sit on the management board or supervisory board of companies other than members of its group subject to the approval of the supervisory board. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, the Board of Directors. Approval to sit on the other companies' boards will first be given for the financial year 2016. II.Z.3. At least two members of the supervisory board should meet the criteria of being independent referred to in principle II.Z.4. Comments of the Company on the mode of application of the principle. The rule applies to members of the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. Currently, the Board of Directors consists of seven directors, including four non-executive directors, of which [three] meet the criteria of being independent as referred to in principle II.Z.4. II.Z.4. Annex II to the European Commission Recommendation of 15 February 2005 on the role of non-executive or supervisory directors of listed companies and on the committees of the (supervisory) board applies to the independence criteria of supervisory board members. Irrespective of the provisions of point 1(b) of the said Annex, a person who is an employee of the company or its subsidiary or affiliate or has entered into a similar agreement with any of them cannot be deemed to meet the independence criteria. In addition, a relationship with a shareholder precluding the independence of a member of the supervisory board as understood in this principle is an actual and significant relationship with any shareholder who holds at least 5% of the total vote in the company. Comments of the Company on the mode of application of the principle. The rule applies to non-executive members of the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, including five non-executive directors. The Company's internal regulation provide its own definition of independence but the Company will apply the independence criteria set out in the European Commission Recommendation of 15 February 2005. II.Z.5. Each supervisory board member should provide the other members of the supervisory board as well as the company’s management board with a statement of meeting the independence criteria referred to in principle II.Z.4. The Company does not apply this principle. The rule applies to members of the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. II.Z.6. The supervisory board should identify any relationships or circumstances which may affect a supervisory board member’s fulfilment of the independence criteria. An assessment of supervisory board members’ fulfilment of the independence criteria should be presented by the supervisory board according to principle II.Z.10.2. Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. The assessment will first be presented for the financial year 2016. II.Z.7. Annex I to the Commission Recommendation referred to in principle II.Z.4 applies to the tasks and the operation of the committees of the Supervisory Board. Where the functions of the audit committee are performed by the supervisory board, the foregoing should apply accordingly. Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, the Board of Directors. II.Z.8. The chair of the audit committee should meet the independence criteria referred to in principle II.Z.4. II.Z.9. To enable the supervisory board to perform its duties, the company’s management board should give the supervisory board access to information on matters concerning the company. Comments of the Company on the mode of application of the principle. The rule applies accordingly to non-executive and executive members of the Board of Directors. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. Executive director provide non-executive directors access to information on matters concerning the Company. II.Z.10.1. an assessment of the company’s standing including an assessment of the internal control, risk management and compliance systems and the internal audit function; such assessment should cover all significant controls, in particular financial reporting and operational controls; Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The assessment will first be undertaken for the financial year 2016. II.Z.10.2. a report on the activity of the supervisory board containing at least the following information:
Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The assessment will first be undertaken for the financial year 2016. II.Z.10.3. an assessment of the company’s compliance with the disclosure obligations concerning compliance with the corporate governance principles defined in the Exchange Rules and the regulations on current and periodic reports published by issuers of securities; Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The assessment will first be undertaken for the financial year 2016. II.Z.10.4. an assessment of the rationality of the company’s policy referred to in recommendation I.R.2 or information about the absence of such policy. Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The Company does not have an established diversity policy II.Z.11. The supervisory board should review and issue opinions on matters to be decided in resolutions of the general meeting. Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors. There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The Board of Directors proposes matters to be decided in resolutions of the general meeting, reviews such matters and, if necessary, issues opinions. There is no assurance that the Board of Directors will be able to receive in advance or review matters brought to the general meeting by shareholders or other third parties. Internal Systems and Functions III.Z.1. The company’s management board is responsible for the implementation and maintenance of efficient internal control, risk management and compliance systems and internal audit function. Comments of the Company on the mode of application of the principle. There is no management board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. The rule applies to the Board of Directors. III.Z.2. Subject to principle III.Z.3, persons responsible for risk management, internal audit and compliance should report directly to the president or other member of the management board and should be allowed to report directly to the supervisory board or the audit committee. III.Z.3. The independence rules defined in generally accepted international standards of the professional internal audit practice apply to the person heading the internal audit function and other persons responsible for such tasks. III.Z.4. The person responsible for internal audit (if the function is separated in the company) and the management board should report to the supervisory board at least once per year with their assessment of the efficiency of the systems and functions referred to in principle III.Z.1 and table a relevant report. Comments of the Company on the mode of application of the principle. The rule applies to reporting by the person responsible for internal audit reports to the Company's Board of Directors. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, the Board of Directors. Therefore, in the Company the management board cannot report to the supervisory board. The report will first be prepared for the financial year 2016. III.Z.5. The supervisory board should monitor the efficiency of the systems and functions referred to in principle III.Z.1 among others on the basis of reports provided periodically by the persons responsible for the functions and the company’s management board, and make an annual assessment of the efficiency of such systems and functions according to principle II.Z.10.1. Where the company has an audit committee, it should monitor the efficiency of the systems and functions referred to in principle III.Z.1, which however does not release the supervisory board from the annual assessment of the efficiency of such systems and functions. Comments of the Company on the mode of application of the principle. The rule applies to the Board of Directors There is no supervisory board in the Company. In accordance with Dutch law, the Company has a one-tier corporate governance structure with a single Board of Directors. The Board of Directors is responsible for the system of internal risk management and controls of the Company and for reviewing its operational effectiveness. III.Z.6. Where the company has no separate internal audit function in its organisation, the audit committee (or the supervisory board if it performs the functions of the audit committee) should review on an annual basis whether such function needs to be separated. Zasada nie ma zastosowania. The Company has separate internal audit function in its organisation. General Meeting, Shareholder Relations IV.Z.1. Companies should set the place and date of a general meeting so as to enable the participation of the highest possible number of shareholders. IV.Z.2. If justified by the structure of shareholders, companies should ensure publicly available real-time broadcasts of general meetings. The Company does not apply this principle. The Company decided not to ensure publicly available real-time broadcasts of general meetings due to technical uncertainties and significant costs associated with such broadcasts. IV.Z.3. Presence of representatives of the media should be allowed at general meetings. IV.Z.4. If the management board becomes aware a general meeting being convened pursuant to Article 399 § 2 – 4 of the Commercial Companies Code, the management board should immediately take steps which it is required to take in order to organise and conduct the general meeting. The foregoing applies also where a general meeting is convened under authority granted by the registration court according to Article 400 § 3 of the Commercial Companies Code. Comments of the Company on the mode of application of the principle. The Company is incorporated under Dutch law so the mentioned regulations of the Polish Commercial Companies Code do not apply to the Company. However, the Company will apply the principle when general meeting is convened pursuant to equivalent regulations of Dutch corporate law. IV.Z.5. The rules of general meetings and the method of conducting the meeting and adopting resolutions must not restrict the participation of shareholders in general meetings and the exercising of their rights. Amendments of the rules of the general meeting should take effect at the earliest as of the next general meeting. IV.Z.6. Companies should strive to ensure that the cancellation of a general meeting, change of its date or break in its proceedings do not prevent or limit the exercising of the shareholders’ rights to participate in the general meeting. IV.Z.7. A break in the proceedings of the general meeting may only take place in special cases, defined at each time in the justification of the resolution announcing the break, drafted on the basis of reasons provided by the shareholder requesting the break. IV.Z.8. A resolution of the general meeting announcing a break should clearly set the date and time when the proceedings recommence, and such date and time must not be a barrier for most shareholders, including minority shareholders, to participate in the continuation of the proceedings. IV.Z.9. Companies should strive to ensure that draft resolutions of the general meeting contain a justification, if it helps shareholders to pass a resolution with adequate understanding. If a matter is put on the agenda of the general meeting at the request of a shareholder or shareholders, the management board or the chair of the general meeting should request presentation of the justification of the proposed resolution. In important matters and matters which may give rise to any doubt of shareholders, the company should provide a justification, unless it otherwise provides the shareholders with information necessary to pass a resolution with adequate understanding. IV.Z.10. Any exercise of the rights of shareholders or the way in which they exercise their rights must not hinder the proper functioning of the governing bodies of the company. IV.Z.11. Members of the management board and the supervisory board should participate in a general meeting as necessary to answer questions asked at the general meeting. IV.Z.12. The management board should present to participants of an ordinary general meeting the financial results of the company and other relevant information contained in the financial statements to be approved by the general meeting. Comments of the Company on the mode of application of the principle. The Company is incorporated under Dutch law so the mentioned regulations of the Polish Commercial Companies Code do not apply to the Company. However, the Company complies with the spirit of the principle. IV.Z.13. If a shareholder request information about the company, the management board of the company should provide an answer to the shareholder’s request within 30 days or inform the shareholder of its refusal to provide such information where the management board has made such decision pursuant to Article 428 § 2 or § 3 of the Commercial Companies Code IV.Z.14. Resolutions of the general meeting should allow for a sufficient period of time between decisions causing specific corporate events and the date of determination of the rights of shareholders pursuant to such events. IV.Z.15. A resolution of the general meeting concerning an issue of shares with subscription rights should specify the issue price or the mechanism of setting the price or authorise the competent governing body to set the price prior to the subscription right record date within the timeframe necessary for investors to make decisions. Comments of the Company on the mode of application of the principle. The Company has not publicly issued shares with subscription rights so far but intends to comply with the rule if such issue is envisaged. IV.Z.16. The dividend record date and the dividend payment date should be set so as to ensure that the period between them is not longer than 15 business days. A longer period between these dates requires a justification. Comments of the Company on the mode of application of the principle. The Company has not plan to pay dividend but intends to comply with the rule if dividend are paid. IV.Z.17. A resolution of the general meeting concerning a conditional dividend payment may only contain such conditions whose potential fulfilment takes place before the dividend record date. Comments of the Company on the mode of application of the principle. The Company has not paid dividend so far but intends to comply with the rule if dividends are paid. IV.Z.18. A resolution of the general meeting to split the nominal value of shares should not set the new nominal value of the shares below PLN 0.50, which could result in a very low unit market value of the shares, and which could consequently pose a threat to the correct and reliable valuation of the company listed on the Exchange. Comments of the Company on the mode of application of the principle. The Company's shares are denominated in EUR so the principle cannot be complied with literally. However, the Company will comply with spirit of the principle. Conflict of Interest, Related Party Transactions V.Z.1. No shareholder should have preference over other shareholders in transactions concluded by the company with shareholders or their related parties. V.Z.2. Members of the management board or the supervisory board should notify the management board or the supervisory board, respectively, of any conflict of interest which has arisen or may arise, and should refrain from voting on a resolution on the issue which may give rise to such a conflict of interest in their case. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors. Thus, the rule applies to members of the Board of Directors. V.Z.3. Members of the management board or the supervisory board must not accept any benefits which might affect their impartiality and objectivism in making decisions or reflect unfavourably on the assessment of the independence of their opinions or judgements. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors. Thus, the rule applies to members of the Board of Directors. V.Z.4. Where a member of the management board or the supervisory board concludes that a decision of the management board or the supervisory board, respectively, is in conflict with the interest of the company, he or she may request that the minutes of the management board or the supervisory board meeting show his or her position. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors. Thus, the rule applies to members of the Board of Directors. V.Z.5. Before the company concludes a significant agreement with a shareholder who holds at least 5% of the total vote in the company or with a related party, the management board should request the supervisory board’s approval of the transaction. Before giving its approval, the supervisory board should evaluate the impact of the transaction on the interest of the company. The foregoing does not apply to typical transactions and transactions at arm’s-length made as part of the company’s operations between the company and members of its group. If the decision concerning the company’s significant agreement with a related party is made by the general meeting, the company should give all shareholders access to information necessary to assess the impact of the transaction on the interest of the company before the decision is made. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors. Thus, the rule is applies in such a way that the approval and evaluation is undertaken by entire Board of Directors. V.Z.6. In its internal regulations, the company should define the criteria and circumstances under which a conflict of interest may arise in the company, as well as the rules of conduct where a conflict of interest has arisen or may arise. The company’s internal regulations should among others provide for ways to prevent, identify and resolve conflicts of interest, as well as rules of excluding members of the management board or the supervisory board from participation in reviewing matters subject to a conflict of interest which has arisen or may arise. Remuneration VI.Z.1. Incentive schemes should be constructed in a way necessary among others to tie the level of remuneration of members of the company’s management board and key managers to the actual long-term financial standing of the company and long-term shareholder value creation as well as the company’s stability. Comments of the Company on the mode of application of the principle. There are currently no incentive schemes for company's directors or key managers. However, the Company intends to comply with the principle if such scheme is introduced. VI.Z.2. To tie the remuneration of members of the management board and key managers to the company’s long-term business and financial goals, the period between the allocation of options or other instruments linked to the company’s shares under the incentive scheme and their exercisability should be no less than two years. Comments of the Company on the mode of application of the principle. There are currently no incentive schemes providing for options or other instruments linked to the company’s shares. However, the Company intends to comply with the principle if such scheme is introduced. VI.Z.3. The remuneration of members of the supervisory board should not be linked to options or other derivatives or any other variable components, and neither should it be linked to the company’s results. Comments of the Company on the mode of application of the principle. There is no management board or supervisory board in the Company. In accordance with Dutch law, the Company has a single governing body, a board of directors, consisting of executive and non-executive directors. The rule applies to non-executive directors. VI.Z.4. In this activity report, the company should report on the remuneration policy including at least the following:
|
| EN_GPW_dobre_praktyki_MILKILAND_N.V..pdf |
| Data | Imię i Nazwisko | Stanowisko | Podpis | ||
| 2016-06-23 16:28:53 | Sergey Trifonov | Investor Relations Officer |
EN_GPW_dobre_praktyki_MILKILAND_N.V..pdf
