The Management Board of Inter Cars S.A. (the “Company”) publishes a statement of non-compliance with some of the rules set out in the amended Code of Best Practice for WSE Listed Companies. The Management Board of Inter Cars S.A. declares that the Company complies with the generally applicable corporate governance rules, save for the following:

Rule II. 1.7

“A company should operate a corporate website and publish on it, in addition to information required by legal regulations: shareholders’ questions on issues on the agenda submitted before and during a General Meeting together with answers to those questions”


The Company will comply with the above rule only to the extent required by the Commercial Companies Code (specifically Art. 428.5–7 in conjunction with Art. 402  3 1.3, and Art. 429 thereof) and the Regulation of the Minister of Finance on current and periodic information (...) of February 19th 2009 (specifically Section 38.1.12 and 38.1.13 thereof). Accordingly, the Company will not publish on its website any questions asked during the General Meeting or answers to such questions given at the Meeting, as such questions and answers may contain legally privileged information.

Rule II. 1.9 a)

“A company should operate a corporate website and publish on it, in addition to information required by legal regulations: a record of the General Meeting in audio or video format”


The Company pursues a transparent and effective disclosure policy ensuring appropriate communication with investors and analysts with the use of traditional techniques, and thus forgoes the possibility of broadcasting or recording its general meetings using the Internet and of publishing such recordings on the Internet in audio or video format as it needs to protect the image of its GM participants.

Rule III. 6

“At least two members of the Supervisory Board should meet the criteria of being independent from the company and entities with significant connections with the company.” The independence criteria should be applied under Annex II to the 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. Irrespective of the provisions of point (b) of the said Annex, a person who is an employee of the company or an associated company cannot be deemed to meet the independence criteria described in the Annex. In addition, a relationship with a shareholder precluding the independence of a member of the Supervisory Board as understood in this rule is an actual and significant relationship with any shareholder who has the right to exercise at least 5% of all votes at the General Meeting.


As required by the Company's Articles of Association, the Supervisory Board is composed of five to thirteen members appointed by the General Meeting. Currently, the Supervisory Board consists of five members. The Supervisory Board members are elected in a vote held among all interested and entitled Shareholders. Names of candidates to the Supervisory Board, their career profiles and qualifications are published in advance and presented during the General Meeting. The choice of Supervisory Board members is an independent decision of the Shareholders present at the General Meeting, and there is no justified reason for imposing any restrictions on candidate selection, which would disavow the clear norms established by the Polish law to protect the corporate rights of shareholders for the sake of largely arbitrary and relative norms.

Rule III. 8

“Annex I to the Commission Recommendation of 15 February 2005 on the role of non-executive or supervisory directors… should apply to the tasks and the operation of the committees of the Supervisory Board.


Currently the Supervisory Board comprises five members and fulfils the tasks of an audit committee. Considering that the audit function is performed by the Supervisory Board as a whole and that the Management Board has no control over who serves on the Supervisory Board, the Company has resolved not to comply with the recommendations set out in Annex I to the Commission Recommendation on the grounds that the audit tasks are performed by a body with a much stronger basis of legitimacy in the Company's structure.

Rule IV. 10

“A company should enable its shareholders to participate in a General Meeting using electronic communication means through:

life broadcast of General Meetings, real-time bilateral communication where shareholders may take the floor during a General Meeting from a location other than the General Meeting.”



For the time being the Company has resolved not to comply with the rule for two reasons: the matter is not regulated by the Company's Articles of Association and the Management Board believes that the present state of IT infrastructure in Poland poses certain technical and legal risks which may prevent the General Meeting from proceeding in a proper, undisrupted manner and may thus affect the shareholder rights. However, the Company may comply with the above rule in the future if the standard of infrastructure improves.


Legal basis: Section 29.3 of the Rules of the Warsaw Stock Exchange.