Reports on obeying the rules of corporate governance

In line with the rule set out in section I. Z.1.11 of the Code of Best Practice for WSE Listed Companies 2016, the Management Board of Inter Cars S.A. (“Company”) announces that the Company has an audit firm selection policy in place, which ensures compliance with the applicable laws on audit firm and lead auditor rotation and mandatory cooling off periods, as required under the Act on Statutory Auditors, Audit Firms and Public Oversight. Pursuant to Art. 14.2.3 of the Company’s Articles of Association, the special powers vested in the Supervisory Board include the power to select and appoint a statutory auditor to audit the Company’s financial statements. The audit firm selection procedure falls within the remit of the Supervisory Board’s Audit Committee, which submits to the Supervisory Board a recommendation for the appointment of an audit firm, which, unless it concerns the renewal of an audit engagement, must be justified, contain at least two choices and express a preference for one of them. In making its decision the Supervisory Board relies on the Audit Committee’s recommendation and its own belief that the Company’s legitimate interests are served, in compliance with applicable laws.

 

 

Reasons behind the decision not to prepare and implement a diversity policy.

 

In line with the rule set out in section I.Z.1.15 of the Code of Best Practice for WSE Listed Companies 2016, adopted by a resolution of the Supervisory Board of Giełda Papierów Wartościowych w Warszawie S.A. of October 13th 2015, the Management Board of Inter Cars S.A. (“Company”) would like to explain that the decision not to prepare and implement a diversity policy is dictated by the Company’s long experience in human resources management, which has demonstrated that natural staff selection based on market forces and with no special preferences or restrictions applied allows the Company to retain strongly motivated and high-performing team. Moreover, in the Company’s business practice, the market criteria for selecting employees, including management personnel, deliver satisfactory results in terms of diversity.