Source: http://www.raportroczny2016.grupapolsat.pl/en/node/45
Timestamp: 2019-10-18 07:40:35
Document Index: 355875350

Matched Legal Cases: ['§ 29', '§ 7', '§ 3', '§ 3', '§ 7', 'Art. 69', 'art. 417', '§ 4', '§ 7', '§ 7']

CORPORATE GOVERNANCE | POLSAT 2016 AR
The corporate governance refers to the entire system of enterprise management and supervision, including the company’s organization and business values, rules and guidelines, as well as all internal and external regulations and monitoring of mechanisms functioning in the Group.
Thanks to the effective and transparent corporate governance, Cyfrowy Polsat is managed and controlled in a responsible way and focused on creating value. This helps in building confidence among our domestic and foreign investors, financial markets, customers and business partners, as well as employees of the Group.
In Poland the corporate governance rules are included in the document: Best Practices of WSE Listed Companies. Their goal is to strengthen the transparency of listed companies, improve the quality of communication of the companies with investors, strengthen protection of shareholders’ rights, also in the areas which are not governed by law. Good Practices apply to areas in which their application may have a positive effect on the market valuation of the enterprise, thus reducing the cost of capital acquisition. More information about this issue is available on the dedicated website: www.corp-gov.gpw.pl.
Each year, the Annual Report is accompanied by the Corporate Governance Compliance Statement in a given year. We present the full statement for 2016 in the following blocks.
Principles of corporate governance which the Company issuer is subject to
In 2016 Cyfrowy Polsat S.A was subject to the set of principles of corporate governance in the form of the “Best Practices of WSE Listed Companies in 2016” (“Best Practices 2016”), constituting an appendix to resolution No. 26/1413/2015 of the Council of WSE of October 13, 2015. The rules set out in the Best Practices 2016 came into force on January 1, 2016. The document is available on the official website of the Warsaw Stock Exchange dedicated to the issues of the corporate governance of listed companies, at http://corp-gov.gpw.pl.
Following the entry into force of the Best Practices 2016 on January 1, 2016, the Management Board of the Company has adopted the recommendations and principles specified in the aforementioned document, except for the recommendations included in items II.R.2., III.R.1., IV.R.2., VI.R.1., VI.R.2., VI.R.3. and the detailed principles included in items I.Z.1.3., I.Z.1.16., I.Z.1.20., II.Z.1., II.Z.7., III.Z.1., III.Z.2., III.Z.4., III.Z.5., IV.Z.2., V.Z.6., VI.Z.4. At the same time, the Management Board decided that the recommendations and detailed principles, marked as items I.Z.1.10., III.Z.6., VI.Z.1. and VI.Z.2. do not apply to the Company.
Pursuant to § 29 section 3 of the Warsaw Stock Exchange Rules, on January 29, 2016, the Company published via the Electronic Information Base (EIB) system Report no. 1/2016/CG on non-compliance with detailed principles included in the set of Good Practices 2016. At the same time, the Company published on its website – according to the requirements of the principle I.Z.1.13. – information about the application by the Company of the recommendations and principles included in the Best Practices 2016.
The Company does not comply or complies partially with the below mentioned recommendations and detailed principles included in the Best Practices 2016:
Recommendation I.R.2., stating that where a company pursues sponsorship, charity or other similar activities, it should publish information about the relevant policy in its annual activity report, is applied within a limited scope. The Company has not implemented a formal policy regarding sponsoring or charity activities. Nonetheless, Polsat Group pursues numerous activities of this nature, including support for sports, or cooperation with numerous foundations and public benefit organizations. The description of the pursued activities is included in the Management’s report on the activities of Cyfrowy Polsat Group in 2016 in item 2.8 – Other aspects of our business – charity and sponsorship activities.
Recommendation II.R.2., stating that where decisions to elect members of the management board or the supervisory board of a company should ensure that the composition of these bodies is comprehensive and diverse among others in terms of gender, education, age and professional experience. The Company has not developed and does not pursue a diversity policy with regard to the Company’s governing bodies and key managers. The members of the Supervisory Board and the Management Board as well as key managers are elected, respectively, by the General Shareholders Meeting, the Supervisory Board and the Management Board while taking into account the qualifications, the experience and the competence of the candidates. Factors such as gender are not taken into account while electing members of the Company’s governing goodies and key managers. The Company’s authorities are of the opinion that such an approach guarantees the election of the most appropriate persons for managerial and supervisory functions.
Principle II.Z.1., stating that the internal division of responsibilities for individual areas of the company’s activity among management board members should be clear and transparent. As a consequence the Company also does not apply the principle marked as I.Z.1.3., requiring the publication of a chart describing that division on the company’s website. The Commercial Companies Code provides that in a joint stock company matters are managed by the Management Board in a collective manner, while a formal division of duties can be introduced optionally. The Company has elected not to comply with this principle, among others due to the on-going process of operational integration inside Polsat Group. Due to the broad scope of responsibilities of each Management Board Member, it is impossible, both within the entire capital group, as well as in individual companies, to define and allocate specific tasks and responsibilities to respective Board. Members.
Principle II.Z.7. regarding the application of the provisions of Annex I to the Commission Recommendation 2005/162/EC of February 15, 2005 with respect to the tasks and the operation of the committees of the Supervisory Board. The Company does not fulfill all the detailed requirements regarding the functioning of supervisory board committees as indicated in the above mentioned Annex I to the Commission Recommendation.
Principles governing the creation, composition and operations of specific committees of the Supervisory Board are set out in § 7 of the Supervisory Board By-laws.
At the current stage of operations of the Supervisory Board Committees, Company authorities do not see the need for introducing more detailed regulations governing the functioning of these committees
Recommendation III.R.1., stating that the company’s structure should include separate units responsible for the performance of tasks in individual systems or functions, (that is internal control, risk management and compliance systems, as well as an internal audit function). An Internal Audit and Internal Control unit operates in the Company. No organizational units responsible for tasks related to risk management and compliance have been set up within the Company’s structure. Nonetheless, relevant internal processes and procedures have been implemented and are in place to guarantee effective financial and operational risk management as well as monitoring the compliance of the Company’s operations with regulations in force. In the Management Board’s opinion, the internal regulations and processes covering risk management function properly and effectively, and setting up of dedicated units responsible for risk management and compliance will not improve the efficiency of these processes and procedures in a substantial degree. At the same time, the Management Board is of the opinion that the cost associated with setting up and maintaining the above-mentioned organizational units will be incommensurate to the benefits offered by them.
Due to the fact that the Company has not implemented centralized, formal risk and compliance management systems, the Company does not apply the principles marked as III.Z.1., III.Z.2., III.Z.4. and III.Z.5. within the scope related to the internal control and internal audit system existing in the Company’s organizational structure.
Numerous internal procedures and processes are in place in the Company with regard to operational and financial risk management, including the process of drafting of financial statements. These procedures ensure effective identification and monitoring of various types of risks at the level of respective organizational units and they also provide for actions to be taken in the event a given risk materializes. High level managers, reporting directly to the Company’s Management Board, managing the areas covered by respective procedures, are responsible for ensuring effective and correct operation of these procedures.
In spite of the lack of a centralized compliance system, the control of the Company’s compliance with legal regulations in respective areas is regulated by internal corporate regulations and takes place at the level of individual organizational units, which deal with a relevant area of activity.
The Management Board carries out on-going verification of the correctness of functioning of internal processes in the areas of risk management and regulatory compliance, and takes necessary actions when needed. The Supervisory Board, and in particular the Audit Committee, monitors and evaluates the effectiveness of functioning of internal processes with regard to operational and financial risk management, including the process of drafting of financial statements, based on documents and reports submitted by the Management Board and a person responsible for the internal audit as well as other information obtained during the daily business activities of the Supervisory Board.
Recommendation IV.R.2., stating that the company should enable its shareholders to participate in a general meeting using means of electronic communication, in particular through:
- real-time broadcast of the general meeting;
- real-time bilateral communication where shareholders may take the floor during a general meeting from a location other than the general meeting;
- exercise of the right to vote during a general meeting either in person or through a plenipotentiary.
Ensuring the smooth running and the validity of the resolutions adopted by the General Meeting are the priorities of the Management Board. The relatively small popularity of the practice of conducting General Meetings using electronic means of communication and insufficient readiness of the market may lead to an increased risk of organizational and technical problems, which may disturb the smooth running of the General Meeting, as well as a risk of possible questioning of the resolutions passed by the General Meeting, in particular due to the occurrence of technical defects. Furthermore, domestic and foreign investors have not reported to the Company their interest or need of organizing General Meetings in this form. In view of the above, the Management Board decided not to apply the said recommendation permanently.
Principle IV.Z.2., about ensuring publicly available real-time broadcasts of general meetings. As a consequence, the Company also does not apply the principles marked as I.Z.1.16. and I.Z.1.20., which recommend publishing on the Company’s website of information regarding the planned transmission and the recordings of general meetings in either audio or video form. An efficient course of proceedings of general meetings as well as cost optimization are priorities for the Management Board. The Management Board makes every effort to ensure that the documentation, as well as the proceedings of general meetings ensure transparency and protect the rights of all shareholders. Information regarding draft resolutions and adopted resolutions, as well as additional materials, is disclosed in the form of current reports and published on the Company’s website, thus enabling equal access to information on the matters addressed at general meetings for all stakeholders. In view of the above, the Management Board is of the opinion that ensuring real-time coverage of general meetings and providing access to recordings of such meetings would not be economically justified. At present the Management Board plans no changes to the manner in which general meetings are organized.
Principle V.Z.6., stating that in its internal regulations, the company should define the criteria and circumstances under which a conflict of interest may arise in the company. The Company’s internal regulations related to prevention, identification and solving of conflicts of interests do not meet the requirements of principle V.Z.6. In particular, they do not include a list of criteria and circumstances under which a conflict of interest may arise in the Company. In accordance with § 3 item 4 of the Supervisory Board By-laws and § 3 item 3 of the Management Board By-laws, a Supervisory Board Member or a Management Board Member should inform the Supervisory Board, or both the Management Board and the Supervisory Board - in the case of a Management Board Member - of any existing conflict of interests, or the possibility of its emergence, and such an individual should refrain from participation in discussions or voting on resolutions related to a matter in which there exists a conflict of interests. In the opinion of the Company’s Management Board, current internal regulations properly address the principles of conduct in a situation of conflict of interests.
Recommendation VI.R.1., stating that the remuneration of members of the company’s governing bodies and key managers should follow the approved remuneration policy and recommendation VI.R.2., stating that the remuneration policy should be closely tied to the company’s strategy, its short- and long-term goals, long-term interests and results, taking into account solutions necessary to avoid discrimination on whatever grounds.
The Company will not comply with recommendation VI.R.1. due to the fact that a formalized remuneration policy covering the members of the Company’s authorities and its key managers has not been implemented in the Company. Nonetheless, individual corporate documents and internal regulations define the manner of determining the remuneration of the members of the Company’s authorities and its employees.
In accordance with article 24 d) of the Company’s Articles of Association, the remuneration of the members of the Supervisory Board requires a resolution of the General Meeting, except for the members of the Supervisory Board delegated to temporarily perform functions of a member of the Management Board, pursuant to article 19 2d) of the Articles of Association, when the decision is taken by the Supervisory Board. The remuneration relates to the scope of tasks and responsibilities related to the function performed, reflects the size of the Company and keeps a healthy relation to its financial results. In accordance with article 19, item 2 g) of the Company’s Articles of Association, the principles of remuneration of Management Board Members are defined by the Supervisory Board, with the remuneration corresponding to the scopes of duties and responsibilities of respective Management Board Members.
In accordance with the Employee Remuneration Regulations valid in the Company, determination of the structure and the amounts of remuneration of key managers is the competence of the Management Board.
Recommendation VI.R.3., stating that If the supervisory board has a remuneration committee, principle II.Z.7. applies to its operations. A Remuneration Committee operates as a standing committee of the Supervisory Board. The Company does not fulfill all the detailed requirements related to functioning of the Remuneration Committee as listed in Annex I to the Commission Recommendations discussed in principle II.Z.7.
Principles governing the creation, composition and operations of specific committees of the Supervisory Board are set out in § 7 of the Supervisory Board By-laws. At the current stage of operations of the Supervisory Board Committees, Company authorities do not see the need for introducing more detailed regulations governing the functioning of the Remuneration Committee.
Principle VI.Z.4., regarding providing of general information on the Company’s remuneration policy. The Company does not have a formalized remuneration policy for the members of the Company’s authorities and its key managers. Pursuant to article 24 d) of the Company’s Articles of Association, the remuneration of the Supervisory Board Members is determined by the General Meeting, save for the remuneration of the Supervisory Board Members who have been temporarily delegated to perform the duties of a Management Board Member by virtue of article 19 item 2d) of the Company’s Articles of Association. In such a situation the decision is taken by the Supervisory Board. The amount of the remuneration depends on the scope of tasks and responsibilities of a function and it also corresponds to the size of the Company, while being in a reasonable proportion to its financial performance.
In accordance with article 19, item 2 g) of the Company’s Articles of Association, the principles of remuneration of Management Board Members are defined by the Supervisory Board, with the remuneration corresponding to the scopes of duties and responsibilities of respective Management Board Members. In accordance with the Employee Remuneration Regulations valid in the Company, determination of the structure and the amounts of remuneration of key managers is the competence of the Management Board.
Nonetheless, it should be underscored that in accordance with the regulations related to information disclosure, the Company presents, in its annual report, general information regarding the remuneration principles valid in the Company as well as the information regarding the remuneration obtained in a given financial year by Management Board Members and Supervisory Board Members, while indicating the fixed and the variable components. The presented information also indicates the rules of payment of severance pay and other payments on account of termination of employment
Internal control systems and risk management applied with respect to the process of preparing financial statements
The Management Board is responsible for our internal control system and its effectiveness in the process of preparing financial statements and interim reports prepared and published in accordance with the provisions of the Ordinance of the Minister of Finance of February 19, 2009 regarding current and periodic information to be submitted by issuers of securities, and the conditions for recognizing equivalence of information required under non-member states regulations.
We draw on our employees' extensive experience in the identification, documentation, recording and controlling of economic operations, including numerous control procedures supported by modern information technologies used for recording, processing and presentation of operational and financial data.
In order to ensure the accuracy and reliability of the accounts of the parent and subsidiary companies, we apply Accounting Policies for Cyfrowy Polsat S.A. Group and various internal procedures relating to transaction control systems and processes resulting from the activities of the Company and the Group.
We keep our accounts in the computer systems integrated with the underlying source systems and auxiliary books. We ensure data security through the use of access rights on the need-to-know basis granted to authorized users. Systems operations are assured by the specialists with extended experience in this field. In addition, the system security is ensured by applying the appropriate solutions for physical security of the equipment. We have a complete IT system documentation in all its areas. In accordance with Article 10 of the Polish Accounting Act of September 29, 1994, the accounting information systems documentation is periodically reviewed and updated upon approval by heads of units.
An important element of risk management, in relation to the financial reporting process, is ongoing internal controls exercised by the Finance and Controlling department and the Internal Audit department.
The Internal audit functions on the basis of the Audit Charter adopted by the Management Board and the Audit Committee of the Supervisory Board. Its primary task is to test and evaluate controls for the reliability and consistency of financial data underlying the preparation of financial statements and management information.
The Controlling department functions on the basis of financial controlling system and business controlling system, and exercises control over both the current processes and the implementation of financial and operational plans, and preparation of financial statements and reports.
An important element of quality control and data review is the use of management standalone and consolidated reporting system, as well as regular monthly analysis of financial and operational performance and key indicators performed by the Management Board. The monthly results analysis is carried out in relation to both the current financial and operational plan and the prior period results.
The budgetary control system is based on monthly and annual financial and operational plans and long-term business projections. Both financial and operating results are monitored regularly in relation to the financial and operational plans. During the year, we perform additional reviews of the financial and operational plans for the year if such need arises. The financial and operational plans are always adopted by the Management Board and approved by the Supervisory Board.
One of the basic elements of control in the preparation of financial statements of the Company and the Group is verification carried out by independent auditors. An auditor is chosen from a group of reputable firms, which guarantee a high standard of service and independence. The Supervisory Board of the Company chooses the Company’s auditor. In the subsidiaries, the auditor is chosen by either the Supervisory Board, the General Meeting or the Meeting of Shareholders. The tasks of the independent auditor include, in particular: a review of semi-annual standalone and consolidated financial statements and audit of annual standalone and consolidated financial statements. Auditor's independence is fundamental to ensure the accuracy of the audit.
An audit committee, appointed within the Company's Supervisory Board, supervises the financial reporting process in the Company. The Audit Committee oversees the financial reporting process, in order to ensure sustainability, transparency and integrity of financial information. The audit committee includes two members of the Supervisory Board, who meet the independence criteria set out in the Best Practices 2016 in section II.Z.4. and the requirements of the Act of May 7, 2009 on chartered auditors and their governing bodies, entities entitled to audit financial statements and on public supervision, in article 86 item 4.
Moreover, under article 4a of the Polish Accounting Act of 29 September 1994 of the accounting act, the duties of the Supervisory Board include ensuring that the financial statements and the report on activities meet the requirements of the law, and the Supervisory Board carries out this duty, using the powers under the law and the articles of association of the Company. This is yet another level of control exercised by an independent body to ensure the accuracy and reliability of the information presented in the standalone and consolidated financial statements.
Agreements with an entity certified to perform an audit of the financial statements
On October 18, 2016, the Company entered into an agreement with PricewaterhouseCoopers Sp. z o.o., with registered office in Warsaw at 14 Al. Armii Ludowej, for the performance of an audit of standalone financial statements for the financial year ended December 31, 2016 of Cyfrowy Polsat S.A. and the consolidated financial statements of Cyfrowy Polsat Group for the financial year ended December 31, 2016.
The following summary presents a list of services provided by the certified auditor and remuneration for the services in the twelve month period ended on December 31, 2016 and December 31, 2015.
[mPLN]
Remuneration for audit of the financial statements for the year and other certifying services, including the review of financial statements 1.9 1.7
Other services 0.5 0.6
Total 2.4 2.3
tabele_p56_en.xlsx
Share capital and shareholding structure of Cyfrowy Polsat
Shareholders holding, directly or indirectly, material bundles of shares
The following table presents shareholders of Cyfrowy Polsat S.A. possessing material bundles of shares at as the date of approval of the annual report for 2016. Information included in the table is based on the information received from shareholders pursuant to Art. 69 of the Act of July 29, 2005 on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and Public Companies.
Reddev Investments Limited (1), including: 154,204,296 24.11% 306,709,172 37.45%
- privileged registered shares 152,504,876 23.85% 305,009,752 37.24%
- ordinary bearer shares 1,699,420 0.27% 1,699,420 0.21%
Embud Sp. z o.o. (2) 58,063,948 9.08% 58,063,948 7.09%
Karswell Limited (2) 157,988,268 24.70% 157,988,268 19.29%
Sensor Overseas Limited (3), including: 54,921,546 8.59% 81,662,921 9.97%
- privileged registered shares 26,741,375 4.18% 53,482,750 6.53%
- ordinary bearer shares 28,180,171 4.41% 28,180,171 3.44%
Others 214,367,958 33.52% 214,539,208 26.20%
Total 639,546,016 100.00% 818,963,517 100.00%
tabele_p57_en.xlsx
(1) Reddev Investments Limited is an indirect subsidiary of Mr. Zygmunt Solorz.
(2) Entity controlled by Mr. Zygmunt Solorz.
(3) Entity controlled by EVO Foundation with its registered seat in Vaduz, Liechtenstein.
Changes in the structure of ownership of significant number of shares of the issuer in the period since the publication of the last periodic report
Since the publication of the previous interim report, i.e. since November 9, 2016 (interim report for the third quarter of 2016) until the date of approval of the annual report for 2016, i.e. March 15, 2017, no changes in the structure of ownership of significant packages of the Company’s shares took place.
Information on material agreements, which can result in a change in the proportion of shares held by hitherto shareholders in the future
As at the date of approval of the annual report for 2016, i.e. March 15, 2017, the Company did not have any information on agreements which can result in a change in the proportion of shares held by hitherto shareholders in the future.
Shares of Cyfrowy Polsat held by members of the Management Board and the Supervisory Board
To the Company’s best knowledge members of the Management Board did not hold any shares of the Company, directly and indirectly, as at the date of approval of the annual report for 2016, i.e. March 15, 2017 as well as at the date of publication of the interim report, i.e. November 9, 2016 (interim report for the third quarter of 2016).
As at the date of approval of the annual report for 2016, i.e. March 15, 2017, the Member of the Supervisory Board, Mr. Aleksander Myszka held directly 50.000 shares of the Company with the nominal value of PLN 2,000.00. To the Company’s best knowledge the remaining Members of the Supervisory Board did not hold any shares of the Company, directly and indirectly, as at the date of approval of the annual report for 2016, i.e. March 15, 2017.
Securities with special controlling rights
Current shareholders do not have any other rights in the General Meeting of Shareholders than those resulting from holding our shares. As at December 31, 2016 the shares of the A through D series are shares preferential as to the voting rights in the way that:
Series A shares totaling 2,500,000 have preferential voting rights entitling their holder to two voting rights per share;
Series B shares totaling 2,500,000 have preferential voting rights entitling their holder to two voting rights per share;
Series C shares totaling 7,500,000 have preferential voting rights entitling their holder to two voting rights per share;
Series D shares totaling 166,917,501 numbered 1-166,917,501 have preferential voting rights entitling their holder to two voting rights per share.
The holders of shares with special controlling rights are:
Reddev Investments Ltd. (152,504,876 shares giving 305,009,752 voting rights on General Meeting),
Sensor Overseas Ltd. (26,741,375 shares giving 53,482,750 voting rights on General Meeting) and
TRIGON XVIII Fundusz Inwestycyjny Zamknięty (171,250 shares giving 342,500 voting rights on General Meeting).
8,082,499 D Series shares, numbered 166,917,502 -175,000,000; 75,000,000 E Series shares; 5,825,000 F Series shares, 80,027,836 H Series shares, 47,260,690 I Series shares and 243,932,490 J Series shares are ordinary bearer shares.
Limitations related to shares
There are no limitations to the exercise of voting rights.
Except for the limitations regarding our securities ownership rights transfer resulting from the general provisions of the law there are no other limitations, in particular contractual limitations, regarding our securities ownership rights transfer.
An amendment to the Articles of Association requires a resolution of the General Shareholders’ Meeting and a registry into the Court register. The general provisions of law and the Bylaws of the General Shareholders’ Meeting and the Articles of Association govern the procedure for adopting resolutions regarding amendments to the Articles of Association.
Pursuant to the provisions of the Articles of Association, taking into account the provisions of art. 417 § 4 of the commercial companies code, an amendment to the Articles of Association may take place without a share buyback.
The General Shareholders’ Meeting acts pursuant to the provisions of the commercial companies’ code, the Articles of Association, and the Bylaws of General Shareholders’ Meeting adopted by Resolution 6 of the Extraordinary Shareholders’ Meeting dated December 4, 2007 and amended by Resolution 29 of the Extraordinary Shareholders’ Meeting dated April 23, 2009.
The General Shareholders’ Meeting adopts resolutions regarding, in particular, the following issues:
a) discussion and approval of Reports on the Management Board’s activity and the Supervisory Board’s activity, and the financial statements for the previous year,
b) decision about distribution of profits, or covering losses,
c) signing off for the Supervisory Board’s and the Management Board’s performance of duties,
d) appointment and dismissal of members of the Supervisory Board and determination of their compensation,
f) amendments to the business activity of the Company,
i) issolution or liquidation of the Company,
k) sale or lease of the Company and establishment of a right of use or sale of the Company’s plant,
m) all decisions regarding claims for damages upon establishment of the Company, or activities of management or supervision,
The General Meeting shall be attended by persons who are shareholders of the Company sixteen days prior to the date of the General Meeting (the day of registration for participation in the General Meeting). The date of registration for participation in the General Meeting is consistent for bearer shares and registered shares holders. Holders of registered shares and interim certificates and lienors and users who have the right to vote, are entitled to participate in the General Meeting of the Company, provided they are entered in the register of shareholders on the day of registration for participation in the General Meeting.
A shareholder, being a natural person, is entitled to participation in the General Shareholders’ Meeting and execution of voting rights in person, or through a proxy. A shareholder, being a legal entity, is entitled to participation in the General Shareholders’ Meeting and execution of voting rights through a person authorized to make representations of intent on its behalf, or through a proxy.
The power of attorney to attend the General Meeting and exercise voting rights requires a written or an electronic form. The shareholder must notify the Company about electronically granting the power of attorney by sending the information specifying the Shareholder and the Shareholder's proxy, including the name and surname or company (the name) and address (seat), and indicating the number of shares and votes, of which the proxy is authorized to exercise to the address: akcjonariusze@cyfrowypolsat.pl.
The General Meeting should be attended by members of the Management Board and Supervisory Board - in the composition which allows for substantive answers to the questions posed during the General Meeting.
The General Meeting is opened by the Chairman of the Supervisory Board or a person they nominate. The person opening the General Meeting shall proceed with immediate election of Chairman of the General Meeting, refraining from considering any other substantive or formal matters.
Each participant in the General Meeting is entitled to be elected the Chairman of the General Meeting, and also nominate one person as candidate to the position of Chairman of the General Meeting. Decisions shall not be made until Chairman of the General Meeting is elected.
The Chairman of the General Meeting directs proceedings in accordance with the agreed agenda, provisions of law, the Articles of Association and the By-laws, and in particular: giving the floor to speakers, ordering voting and announcing the results thereof. The Chairman ensures efficient proceedings and respecting of the rights and interests of all Shareholders. The Chairman may decide on issues of the order of the agenda.
After creation and signing of the attendance list the Chairman approves that the Shareholders’ Meeting has been called in a proper manner and is authorized to pass resolutions; presents the agenda and orders selection of the Ballot Committee.
The General Meeting may pass a motion regarding nonfeasance of voting over an item on the agenda, and also on adjourning the order of issues on the agenda. However, removing an item from the agenda, or its adjourning upon a request of shareholders, requires prior consent of all the shareholders present, who have forwarded such a motion, supported by a majority of votes of the General Meeting. Motions regarding the aforementioned issues shall be justified in detail.
The Chairman, after opening an item on the agenda, may give the floor in order of application of speakers. In the event of a significant number of applications the Chairman may set a time limit or limit the number of speakers. The floor may be taken regarding items on the agenda and currently under discussion only. The Chairman may give the floor outside of the order of application to the members of the Management Board or Supervisory Board, and also to the Company experts called by them.
The Meeting may not pass resolutions regarding items that are not on the agenda unless all the share capital is represented in the General Meeting and none of the present in the Meeting raises any objections as to the adoption of a resolution.
Voting shall proceed in a manner adopted by the General Meeting using a computerized system of casting and counting votes, ensuring that votes are cast in the number corresponding to the number of shares held and - in case of a secret ballot - allowing to eliminate a possibility of detecting the manner of voting by individual Shareholders.
Subject to mandatory provisions of law, the General Meeting shall be valid if attended by shareholders representing jointly more than 50% of the total number of votes in the Company. Resolutions are adopted by a simple majority of votes.
As at December 31, 2016 the shareholders participating in the General Meeting had the number of votes corresponding to the number of shares held, observing the fact that the shares listed in item 8.4.3. – Securities with special controlling rights – are preferential in such a way that each of them entitles to casting two votes at the General Meeting.
The Chairman of the General Meeting closes the General Meeting upon exhausting its agenda.
Rules regarding appointment and dismissal of the management and their rights
Pursuant to article 15 of the Articles of Association of the Company the Management Board consist of one or more members, including the President and Vice-president or and Vice-presidents of the Management Board, appointed by the Supervisory Board. The Supervisory Board decides as to the number of Management Board members upon their appointment. The term of office of the Management Board is joint and lasts three years. The members of the Management Board may be dismissed at any time by the Supervisory Board.
Pursuant to the Articles of Association, the Management Board of the Company, led by the President of the Management Board, is responsible for our day-to-day management and for our representations in dealing with third parties. All business decisions are in the scope of activities of the Management Board, unless limited by law, Articles of Association to be the competence of the Supervisory Board or the General Shareholders’ Meeting.
Members of the Management Board participate in each General Shareholders’ Meeting and provide answers to questions posed during the General Shareholders’ Meeting. Moreover, members of the Management Board invited by the Chairman of the Supervisory Board to a Meeting of the Supervisory Board participate in the Meeting with a right to voice their opinion on issues on the agenda.
The General Shareholders’ Meeting makes decisions regarding an issue or buy back of our shares. The competencies of the Board in respect to the above are limited to execution of any resolutions adopted by the General Shareholders’ Meeting.
Composition of the Management Board and changes in 2016
At the date of approval of the annual report for 2016, i.e. March 15, 2017, our Management Board had seven members. The table below presents personal changes in the composition of the Management Board which took place in 2016.
March 1, 2016 Agnieszka Odorowicz joined the Management Board, appointed by a resolution adopted by the Supervisory Board on December 8, 2015. She took up the position of Member of the Management Board.
September 30, 2016 Tomasz Szeląg resigned from the function of Management Board Member.
October 1, 2016 Katarzyna Ostap-Tomann joined the Management Board, appointed by a resolution adopted by the Supervisory Board on August 25, 2016. She took up the position of Member of the Management Board.
tabele_p61-62_en.xlsx
The following table presents names, surnames, functions, dates of appointment and dates of expiry of the current term of particular members of the Management Board as at December 31, 2016.
Year of appointment for the current term
Year of expiry of term
Tobias Solorz President of the Management Board 2014 2016 2019
Dariusz Działkowski Member of the Management Board 2007 2016 2019
Tomasz Gillner-Gorywoda Member of the Management Board 2014 2016 2019
Aneta Jaskólska Member of the Management Board 2010 2016 2019
Agnieszka Odorowicz Member of the Management Board 2016 2016 2019
Katarzyna Ostap-Tomann Member of the Management Board 2016 2016 2019
Maciej Stec Member of the Management Board 2014 2016 2019
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Tobias Solorz has many years of professional experience in the telecommunications, financial and controlling sectors. He began his career in 2003 at Telewizja Polsat S.A. (currently Telewizja Polsat Sp. z o.o.). Between 2007 and 2008 he held the position of Promotion Manager at Cyfrowy Polsat. Between 2008 and 2010 he was a Member of the Management Board of Sferia S.A., where he then continued as Marketing, Advertisement, Sales and Operations Director until March 2011.
He has been a Member of the Management Board of Polkomtel since November 2011, where he has held the position of President of the Management Board since February 2014. He was appointed to the position of a Member of the Management Board of Cyfrowy Polsat in September 2014 and took up the position of Vice-president of the Management Board in December 2014. Since December 2015 he has held the position of President of the Management Board of Cyfrowy Polsat. He is also the President of the Management Board of Plus TM Management Sp. z o.o., as well as Member of Supervisory Boards of Liberty Poland S.A. and Polkomtel Business Development Sp. z o.o.
Mr. Tobias Solorz is a graduate of the Faculty of Management and Marketing at the University of Warsaw.
Dariusz Działkowski has been a Member of the Management Board of Cyfrowy Polsat responsible for technology since August 2007. Mr. Działkowski is the Technical Director of the Company since November 2001. He is also a Member of Management Boards of INFO-TV-FM Sp. z o.o., and Polski Operator Telewizyjny Sp. z o.o.
Since 2010 he is a Member of the Management Board of Polish Electronics and Telecommunications Chamber of Commerce (Krajowa Izba Gospodarcza Elektroniki i Telekomunikacji), he is also the Chairman of the Audit Committee of the Society Sygnał (Stowarzyszenie Sygnał). Mr. Działkowski gained his previous professional experience with Canal+ and Ericsson where he held the positions of Technical Director and Services Sales Department Manager, respectively. He is one of the founders of Centrum Telemarketingowe Sp. z o.o.
Mr. Działkowski graduated from the Faculty of Electronics at the Warsaw University of Technology with a major in Radio and Television specialization and additionally holds an MBA degree from the University of Maryland.
Tomasz Gillner-Gorywoda held the position of President of the Management Board of Cyfrowy Polsat from October 2014 until December 2015. Since December 2015 he is a Member of the Management Board. Concurrently, he holds the position of General Director and Proxy at Polkomtel.
He began his professional career in 1979 in the operational department at LOT Polish Airlines, where he worked for almost 10 years. From 1988 to 2007 he worked abroad performing managerial functions in companies based in Canada (1988-1993) and Australia (1993-2007). After his return to Poland in 2008, he held managerial positions and acted as proxy for several companies. Notably, he was the President of the Management Board of Laris Investments Sp. z o.o. (2008-2013) and Apena S.A. (2011-2012). He has been vice-president of the Management Board of PRN Polska Sp. z o.o. since 2008. Additionally, he acted as proxy for SPV Grodzisk Sp. z o.o. (2012-2013), JK Project Sp. z o.o. (2010-2013) and 3G Sp. z o.o. (since 2011). Moreover, between 2011 and 2012 he held the position of member of the supervisory board of Tower-Service Sp. z o.o.
Mr. Tomasz Gillner-Gorywoda is a graduate of the Faculty of Law and Administration at the University of Warsaw and post-graduate studies in management at Monash University in Melbourne.
Aneta Jaskólska has been a Member of the Management Board of Cyfrowy Polsat since July 2010. She is responsible for the Customer Service Department and Safety Department. Ms. Jaskólska is also a Member of the Management Boards of Cyfrowy Polsat Trade Marks Sp. z o.o., INFO-TV-FM Sp. z o.o., Liberty Poland S.A. and Polkomtel.
Between 2004 and 2007 Ms. Jaskólska held the position of Proxy and Director of Legal Department of UPC Polska Sp. z o.o. She was also a member of the Copyright Committee (Komisja Prawa Autorskiego). Ms. Jaskólska has many years of experience in legal advisory and services to large business entities.
Ms. Jaskólska graduated from the Faculty of Law and Administration at the Warsaw University and completed legal internship with the District Chamber of Legal Advisers in Warsaw, receiving the title of a solicitor. She also graduated from Copyright, Publishing and Press Law Faculty at the Department of Management and Social Communication of the Jagiellonian University.
Agnieszka Odorowicz has been a Member of the Company’s Management Board since March 1, 2016 and is responsible for the film production. From 2001 until 2009 she was an academic staff member at the Department of Trade and Market Institutions at the Cracow Academy of Economics and the author of publications on cultural management and economics as well as the promotion of regions. In the years 2002-2004 the authorities of the Academy appointed her to the position of director of the Development and Promotion Center of the Cracow Academy of Economics. In the years 2003-2004 she acted as deputy Minister of Culture for structural funds, responsible for negotiations with the European Commission regarding the use of EU funds for the development of cultural infrastructure. During the years 1997-2003 she was the artistic director of the International Competition of Contemporary Chamber Music and producer of several programmes for public television. In the years 2004-2005 she held the position of Secretary of State at the Ministry of Culture, where she was responsible for the legal and economic departments as well as cooperation with the Parliament. During this period she was the Chairwoman of the inter-ministerial group for the media policy of the State. In the years 2005-2015 she was the first director of the Polish Film Institute. Reelected as director in a competition in 2010, she managed the Polish Film Institute until October 2015.
Ms. Odorowicz is a graduate of the Cracow University of Economics, an economist and cultural manager.
Maciej Stec has been a Member of the Management Board of Cyfrowy Polsat S.A since November 2014. Concurrently, he holds the position of the Member of the Management Board and Sales & Foreign Acquisition Director of Telewizja Polsat. He is also a Member of the Supervisory Board of Muzo.fm Sp. z o.o.
From the beginning his professional career Mr. Stec was connected with television market. From 1998 he worked among others for OMD Poland media house, owned by Omnicom Group, where in the years 1998-2003 held a position of Managing Director of Brand&Media OMD. Since February 2003 he has been Managing Director of Telewizja Polsat's advertisement office - Polsat Media Sp. z o.o. (currently Polsat Media Biuro Reklamy Sp. z o.o. Sp.k.).
Mr. Stec graduated from the Management and Marketing Faculty of the Leon Kozminski Academy of Entrepreneurship and Management in Warsaw.
Katarzyna Ostap-Tomann has been connected with Cyfrowy Polsat Group since 2009, where she assumed the position of deputy CFO of the Capital Group in 2015, and she has been a Member of the Management Board responsible for the finances of the Group since October 2016. She also holds the position of President of the Management Board of Telewizja Polsat Holdings Sp. z o.o., as well as Member of the Management Board of Telewizja Polsat Sp. z o.o. and Polsat License Ltd., with its registered seat in Switzerland.
In the years 1996–2004 she was employed at various positions at Philip Morris in Poland and in the regional headquarters of the company in Switzerland, where she gained considerable experience in the fields of corporate finance, financial reporting, management accounting and internal audit. In the years 2004-2009 she worked for TVN Group as financial controller of the capital group. She was responsible for the preparation of financial statements at the capital group level and internal management reporting. In 2009 she took the position of Director of Controlling at Cyfrowy Polsat, where she became Financial Director in 2012. Since 2011 she has also held the function of Financial Director at Telewizja Polsat, where she was appointed as Member of the Management Board in 2014. She has been a member of the ACCA since 2001. In 2015 she was appointed to the ACCA Council in Poland for a second term.
Ms. Ostap-Tomann is a graduate of the Warsaw School of Economics with a major in International Economic and Political Relations and also holds the title of MBA from Oxford Brookes University.
Bylaws of the Management Board
Our Management Board acts pursuant to the provisions of the commercial companies code, the Company’s Articles of Association and the Bylaws of Management Board approved by the Supervisory Board on 29 November 2007.
The Management Board runs our matters in a transparent and efficient way pursuant to the provisions of the law, our internal provisions and the Best Practices 2016. Upon taking decisions related to our matters, the members of the Management Board act within justified limits of business risk.
The following are entitled to submit statements on our behalf
(i) in the case of one person Management Board – the President of the Management Board acting independently, and
(ii) in the case of a more numerous Management Board – the President of the Management Board acting independently, the Vice-president of the Management Board acting jointly with a member of the Management Board or another Vice-president, two members of Management Board acting jointly, the Vice-president of the Management Board acting jointly with a proxy, or a member of the Management Board acting jointly with a proxy.
All issues related to our management, not restricted by the provisions of the law or the Articles of Association to the competence of the Supervisory Board or the General Meeting, are within the scope of competence of the Management Board.
Members of the Management Board participate in sessions of the General Meeting and provide substantive answers to questions asked during the General Meeting. Members of the Management Board invited to a meeting of the Supervisory Board by the Chairman of the Supervisory Board participate in the meeting with the right to take the floor regarding issues on the agenda. Members of the Management Board shall, within their scope of competence and the scope necessary to settle issues discussed by the Supervisory Board, submit explanation and information regarding Company affairs to the participants in the meeting of the Supervisory Board.
The Board adopts resolutions provided that at least a half of the members of the Board are present in the meeting and all members of the Board have been notified of the meeting. Resolutions are adopted by an absolute majority of votes of the members of the Board present in the meeting or participating in the voting. The establishment of a proxy requires consent of all the members of the Management Board. Each member of the Management Board may revoke the power of proxy. In the case of equality of votes upon adoption of resolutions by the Management Board the vote of the President of the Management Board shall prevail.
Resolutions are adopted in a meeting or in a manner set out below. The President of the Management Board, or a person they authorized, calls meetings of the Management Board. The meetings of the Management Board are held in our offices or another place indicated by the person calling the meeting.
The voting is open. A secret voting shall be administered upon a request of just one member of the Board present in the meeting.
Moreover, according to the Bylaws of the Management Board, the Management Board may adopt resolutions in writing, or in a manner enabling instantaneous communication of the members of the Management Board by means of audio-video communication (e.g. teleconferencing, videoconferencing).
Information regarding remuneration of members of the Management Board for the financial year ended December 31, 2016 is included in Note 44 of the consolidated financial statements for the financial year ended December 31, 2016.
Managerial contracts with members of the management board setting out severance packages payout as a result of their resignation or dismissal from the position without a material cause
The Company has concluded managerial contracts with the following Members of the Management Board: Dariusz Działkowski, Tomasz Gillner-Gorywoda, Aneta Jaskólska, Agnieszka Odorowicz and Katarzyna Ostap-Tomann. These contracts do not provide for the payment of severance packages as a result of the resignation of the mentioned above Members of the Management Board or their dismissal from the position without a material cause, or in the case when their resignation or dismissal results from a merger by acquisition of the Company.
As at January 1, 2016 the Supervisory Board comprised the following members:
Zygmunt Solorz – Chairman of the Supervisory Board,
Józef Birka – Member of the Supervisory Board
Robert Gwiazdowski – Independent Member of the Supervisory Board,
Aleksander Myszka - Member of the Supervisory Board,
Leszek Reksa – Independent Member of the Supervisory Board,
Heronim Ruta - Member of the Supervisory Board.
On September 30, 2016 Mr. Zygmunt Solorz resigned from the membership of the Company’s Supervisory Board with immediate effect. Pursuant to the resolutions adopted on September 30, 2016, the Extraordinary General Meeting of the Company appointed Mr. Tomasz Szeląg and Mr. Marek Kapuściński to the Supervisory Board as of October 1, 2016.
On October 25, 2016, the Supervisory Board acting pursuant to article 20 item 3 of the Company’s Articles of Association, elected Mr. Marek Kapuściński as Chairman of the Supervisory Board. Moreover, acting in accordance with § 7 section 1 of the Bylaws of the Supervisory Board of the Company, the Supervisory Board completed the composition of the Remuneration Committee by appointing Mr. Tomasz Szeląg as Member of the Remuneration Committee. Additionally, acting in accordance with § 7 section 1 of the Bylaws of the Supervisory Board of the Company, the Supervisory Board enlarged the Audit Committee by appointing Mr. Tomasz Szeląg as Member of the Audit Committee.
As at December 31, 2016 the Supervisory Board comprised the following members:
Marek Kapuściński Chairman of the Supervisory Board Independent(1) member of the Supervisory Board 2016 2016 2018
Józef Birka Member of the Supervisory Board 2015 2015 2018
Robert Gwiazdowski Independent(1) member of the Supervisory Board Chairman of the Audit Committee 2008 2015 2018
Aleksander Myszka Member of the Supervisory Board 2015 2015 2018
Leszek Reksa Independent(1) member of the Supervisory Board Member of the Audit Committee 2008 2015 2018
Heronim Ruta Member of the Supervisory BoardMember of the Audit Committee Member of the Remuneration Committee 2001 2015 2018
Tomasz Szeląg Member of the Supervisory BoardMember of the Audit Committee Member of the Remuneration Committee 2016 2016 2018
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(1) conforms with the independence criteria listed in a set of principles of the corporate governance of the Best Practices 2016 in principle II.Z.4.
Marek Kapuściński joined the Company’s Supervisory Board on 1 October 2016, and has performed the function of its Vice Chairman since 25 October 2016. He graduated from the Faculty of Trade of the Academy of Planning and Statistics in Warsaw (now the Warsaw School of Economics) and completed postgraduate studies at SEHNAP in cooperation with Stern School of Business – New York University.
Until the end of September 2016, for over 25 years, he has been part of the Procter&Gamble team. From July 2011 as a General Manager and Vice President (that is a President of the Management Board/CEO) for nine key markets of the Central Europe, and before that – from January 2007 he was responsible for Poland and Baltic states. Currently, he is a Member of the Supervisory Boards of Bank Handlowy w Warszawie S.A. and Cydrownia S.A. and provides consulting services within the Essences Consulting Group. He is also involved in the activities of the public benefit organizations supporting the development of the young Polish culture and arts
Józef Birka joined the Company’s Supervisory Board in April 2015. He is an advocate and graduate of the Faculty of Law of Wroclaw University. He has been associated with Telewizja Polsat S.A. since its inception, he was in charge of the function of the President of the Management Board of Telewizja Polsat during the first licensing procedure granting terrestrial license to broadcast the first independent countrywide TV channel in Poland. Since its establishment, he is a member of the Board of the POLSAT Foundation, one of the largest non-governmental organizations operating in Poland.
Mr. Józef Birka has extensive experience of working in statutory bodies of commercial-law companies. He is a member of the Supervisory Board Telewizja Polsat Sp. z o.o., Polkomtel Sp. z o.o. and Elektrim S.A. Between 2004 and 2006 he was also in the Supervisory Board member of Polska Telefonia Cyfrowa Sp. z o.o. He acted actively in the Association of Private Media Employers, incorporated into Polish Confederation of Private Employers "Lewiatan.” He was honored by the Polish Bar Council with a medal “Commendable Service to the Advocates Bar.”
Robert Gwiazdowski has been a Member of the Company’s Supervisory Board since July 2008. He holds a post-doctoral degree of Habilitated Doctor (doctor habilitatus) in law and is a professor at Łazarski University. Mr. Gwiazdowski is an active attorney-at-law and tax advisor.
In the years 2005-2014, he served as President of Adam Smith Centre. He is currently a Chairman of the Institute’s Council. In 2006-2007, he served as Chairman of the Supervisory Board of the Polish Social Insurance Institution (Zakład Ubezpieczeń Społecznych). At present, Mr. Gwiazdowski serves as Member of the Supervisory Boards of the following listed companies: DGA S.A., SARE S.A., Dom Maklerski IDM S.A., and MNI S.A., which operates on the telephony and TV markets.
Aleksander Myszka joined the Company’s Supervisory Board in April 2015. He is a solicitor and graduate of the Faculty of Law of Wroclaw University. He commenced his career as a solicitor in a Law Firm in Oleśnica, and then he worked for Law Office No. 4 in Wrocław where he also held a position of a Director for two terms of office. In particular, he focused in his practice on civil law and since the mid-eighties he has specialized in commercial law and developed legal services for business entities. His career has been connected with Telewizja Polsat since its establishing, as Mr. Myszka is one of its co-founders. For 12 years – in the period from 1995 to 2007 – he held the position of the President of the Management Board of Telewizja Polsat.
Since April 2007 Mr. Aleksander Myszka has been a member of the Supervisory Board of Telewizja Polsat and since November 9, 2011 - a member of the Supervisory Board of Polkomtel. He is also a member of the Polsat Foundation Council since its creation, that is since 1996. He is also a co-founder and a member of Stowarzyszenie Kreatywna Polska, a society gathering the community of artists and creative industries, whose main goals are the protection of copyrights and intellectual property. In 2015, Mr. Myszka was elected for a 3-year term of office to the Council of the Polish Film Institute. Since 2016 he has been a Member of the Management Board of Association of Private Media Employers, incorporated into Polish Confederation of Private Employers "Lewiatan.”
Leszek Reksa was appointed a Member of the Company’s Supervisory Board in July 2008. He graduated from the Foreign Trade Faculty of the Central School of Planning and Statistics in Warsaw (currently: Warsaw School of Economics). He has also completed numerous specialist seminars and courses in management and finance, including a seminar on corporate management at the Faculty of Finance at DePaul University in Chicago.
He has vast experience in managerial positions at various companies, including 20 years in the banking sector (Powszechna Kasa Oszczędności Bank Polski S.A.). Mr. Reksa also has many years' experience in serving on the governing bodies of commercial-law companies, which includes the positions of President of the Management Board of PHU BIMOT S.A., Member of the Supervisory Board of Bankowy Fundusz Leasingowy S.A., and Member of the Supervisory Board of Zakłady Azotowe Kędzierzyn S.A. Currently he is a Member of the Management Board of AGRAIMPEX Sp. z o.o. and a Member of Supervisory Boards of PLUS BANK S.A. and EBU Węgrzynowo.
Heronim Ruta graduated from the Electric Faculty of the Warsaw University of Technology. He has nearly 40-year business experience in such sectors as: media, telecommunication, trade or services. Since the very beginning he has been involved in building the strategy and consistent development of the main companies from the Polsat Group. From 1978 to 1979, he worked in the National Railway Technology Centre. In the years 1980-1987, he was a head of Wytwórczo-Usługowa Spółdzielni Pracy (a production and service cooperative) in Radom. In 1987, he founded Herom Sp. z o., where he was a President until 1992. In the years 1992-1994, he was a President of Ster Sp. z o.o., from 2002 to 2005 – a Member of the Management Board of Polaris Finance B.V., and from 2002 to 2004 – a Member of the Supervisory Board of a Lithuanian TV station - Baltijos Televizja, UAB. He has an extensive experience working in statutory bodies of commercial companies. He is currently a Member of Supervisory Boards of, among others, Cyfrowy Polsat S.A., Telewizja Polsat Sp. z o.o., Plus Bank S.A., PAI Media S.A. and Polkomtel Sp. z o.o.
Tomasz Szeląg has been a Member of the Company’s Supervisory Board since October 2016, where he is also a Member of the Audit Committee and Remuneration Committee. He graduated from the National Economy Faculty of the Economic Academy of Wrocław, with major in International Economic and Political Relations specializing in Foreign Trade. He has been involved with Cyfrowy Polsat since 2009. In 2016 he was appointed a Member of Supervisory Boards of Polkomtel, Telewizja Polska, ZE PAK and Plus Bank S.A.
In 2000-2003 Mr. Szeląg was an assistant at Foreign Trade Faculty of the Economic Academy of Wrocław. In May 2003 Mr. Szeląg received PhD title for his thesis on hedging transaction used by world copper producers and went on to become a lecturer in the Faculty of International Economic Relations of the Economic Academy of Wrocław. Between 2003 and 2004 he also held a position of a lecturer in the Wrocław School of Banking - at the Faculty of International Economic Relations. Parallel to his academic career Mr. Szeląg also developed his professional career gaining experience in managerial positions in the area of finance and investment. From 2003, Mr. Szeląg was Chief Specialist in the Currency Risk Department of KGHM Polska Miedź S.A., and then of the Market Risk and Analysis Department. In September 2004, he became Director of the Department. In December 2004, he became Director of Hedging Department of KGHM and held the function until March 2007. From April 2007 to June 2008 he worked as Director of Branch of Société Générale Bank in Wrocław. In July 2008, Mr. Szeląg took the position of Vice-president for Finance in Telefonia Dialog S.A., which he held until March 2009. Mr. Szeląg was responsible for finance, accounting, controlling, and budgeting management, and also owner supervision and capital investment, logistics and purchases, project management and IT.
From May 2009 until September 2016 he held the position of Member of the Management Board and Chief Financial Officer in Cyfrowy Polsat S.A. and was responsible for broadly understood finances in the entire capital group. In the years 2010-2016 Mr. Szeląg was a member of the management boards of numerous companies from Polsat Group, including Telewizja Polsat (October 2011-October 2014), INFO-TV-FM Sp. z o.o. (July 2012-November 2016), CPSPV1 and CPSPV2 (April 2013-November 2016), Plus TM Management (April 2014-December 2016) and Polkomtel (September 2014-December 2016). He was also a President of the Management Board of Cyfrowy Polsat Trade Marks Sp. z o.o. (2010-2016) and Telewizja Polsat Holdings Sp. z o.o. (2012-2016).
Competences and by-laws of the Supervisory Board
The Supervisory Board acts pursuant to the commercial companies code and also pursuant to the Articles of Association of the Company and the Bylaws of the Supervisory Board of 3 December 2007.
Pursuant to the Articles of Association of the Company the Supervisory Board performs constant supervision over activities of the enterprise. Within the scope of supervision performance the Supervisory Board may demand any information and documents regarding our business from the Management Board.
Members of the Supervisory Board shall take necessary steps to receive regular and full information from the Management Board regarding material matters concerning our business and risks involved in the business and the strategies of risk management. The Supervisory Board may - not infringing the competencies of other bodies of the Company - express their opinion on all the issues related to our proceedings, including forwarding motions and proposals to the Board.
The competencies of the Supervisory Board also include matters restricted by the Commercial Companies Code, in particular:
a) audit of the financial statements both as to their compliance with the books and documents and also the factual state, audit of the interim and annual reports of the Management Board, or Management Board’s motions regarding allocation of profit or covering debts and presenting written reports with results of the audits before the General Shareholders Meeting,
b) creating, once a year, and presenting before the Annual General Meeting a concise evaluation of the situation of the Company, considering the evaluation of the internal control system, and the system for managing risks relevant for the Company,
c) appointment of members of the Management Board,
d) delegation of members of the Supervisory Board to temporary performance of duties of members of the Management Board who are unable to perform their duties,
e) suspending particular or all members of the Management Board for material reasons,
f) approval of the Bylaws of the Management Board,
g) determination of remuneration of the members of the Management Board,
h) appointment of a certified auditor to examine financial statements of the Company,
i) granting consent for disbursement of a down payment toward the anticipated dividend.
Moreover, the competencies of the Supervisory Board include:
a) creation and presentation of an evaluation of the work of the Management Board before the General Shareholders’ Meeting,
b) analysis and issuing of an opinion on matters that may be the subject of a resolution of the General Meeting,
c) approval of one-year and long-term programs for the Company developed by the Management Board,
d) determination of the remuneration level of the Supervisory Board delegated to temporary performance of duties of a member of the Management Board,
g) granting consent for entering into a material agreement with a related entity,
h) granting consent for performance of activities resulting in the Company incurring a liability, with the exception of:
- activities projected or set out in the annual program for the Company approved by the Supervisory Board, or
- activities resulting in incurring a liability of the value up to PLN 10.0 million, including guarantees or issuing or guaranteeing bills of exchange done in the scope of daily business, in particular the business of pay digital television, Internet service or the business of MVNO.
i) issuing, upon the Management Board’s request, opinion on all issues material for the Company.
The Supervisory Board consists of five to nine members including the Chairman of the Supervisory Board, appointed by the General Shareholders’ Meeting. The General Shareholders’ Meeting, prior to appointment of members of the Supervisory Board for a new term, determines the number of members of the Supervisory Board. The term of office of the Supervisory Board is three years and is a joint one.
The Supervisory Board consists of three members meeting the criteria of an independent member of the Supervisory Board as set out in the corporate governance principles included in the Best Practices 2016 in the principle II.Z.4.
Meetings of the Supervisory Board take place at least once a quarter. The venue for meetings is the seat of the Company or any other place indicated by the person calling the meeting.
The Chairman of the Supervisory Board, or a member of the Supervisory Board appointed by the Chairman calls a meeting of the Supervisory Board. Meetings of the Supervisory Board are chaired by the Chairman, and in the case of his absence by a member of the Supervisory Board indicated by the Chairman in writing, or another member of the Supervisory Board elected by the members present in the meeting.
The Chairman calls a meeting of the Supervisory Board also upon request of a member of the Management Board, or a member of the Supervisory Board, or upon a motion of a shareholder representing at least 1/10 (one tenth) of the share capital. A Meeting of the Supervisory Board shall take place at least within 14 days of the date of filing a written application to the Chairman.
Resolutions of the Supervisory Board are passed by majority of votes cast. In the case of equality the vote of the Chairman prevails. A resolution of the Supervisory Board requires inviting all the members of the Supervisory Board and presence of at least half of the members of the Supervisory Board to be valid.
The Supervisory Board may pass resolutions via means of direct, remote communication and also a member of the Supervisory Board may cast their vote in writing via other member of the Supervisory Board.
Members of the Supervisory Board execute their rights and perform their duties in person. Members of the Supervisory Board participate in General Meetings.
Moreover, within the performance of their duties, the Supervisory Board shall:
a) once a year prepare and present before the General Meeting a concise evaluation of the situation of the Company, considering the evaluation of the internal control system and the management system of risks that are important for the Company,
b) once a year prepare and present before the Annual General Meeting an evaluation of its their own performance,
c) investigate and issue opinions about matters to be subjects of resolutions of the General Meeting.
Pursuant to the Bylaws of the Supervisory Board the Supervisory Board may appoint permanent committees, in particular the Audit Committee, or the Remuneration Committee, or ad hoc committees to investigate certain issues remaining in the competence of the Supervisory Board or acting as advisory and opinion bodies of the Supervisory Board.
The Audit Committee, as at December 31, 2016 comprised the following members of the Supervisory Board:
Robert Gwiazdowski, an independent member of the Supervisory Board,
Leszek Reksa, an independent member of the Supervisory Board,
Tomasz Szeląg (since October 25, 2016).
On January 8, 2016, Mr. Robert Gwiazdowski was appointed to the position of Chairman of the Audit Committee, which constitutes the fulfillment of principle II.Z.8 of the Best Practices of WSE listed Companies 2016, according to which the Chairman of the Audit Committee meets the independence criteria referred to in Annex II to the European Commission Recommendation 2005/162/WE of February 15, 2005.
The composition of the Audit Committee meets the requirements of Article 86, Paragraph 4 of the Act of 7 May 2009 on auditors and their self-government, entities authorized to audit the financial statements and the public supervision, according to which, the Audit Committee should include at least three members, including at least one member of the Audit Committee who must satisfy the condition of independence and be qualified in the field of accounting or auditing.
In 2016, the Remuneration Committee was composed of:
Zygmunt Solorz (from January 1, 2016 to September 30, 2016)
The provisions of the Bylaws apply to meetings, resolutions, and minutes of the committees of the Supervisory Board, with reservation of the following information.
A committee is appointed by the Supervisory Board from among its members by means of a resolution. The committee appoints, by means of a resolution, the Chairman of the particular committee from among its members. The mandate of a member of a particular committee expires upon expiry of the mandate of the member of the Supervisory Board. The Supervisory Board may, by means of a resolution, resolve to dismiss a member from the composition of a particular committee before the expiry of the mandate of the member of the Supervisory Board. Dismissal from membership in a committee is not tantamount to dismissal from the Supervisory Board.
The first meeting of a committee is convened by the Chairman of the Supervisory Board or other member of the Supervisory Board they indicate. Meetings of the committees are convened as needs arise, ensuring thorough delivery of duties assigned with a particular committee. Minutes of committee's meetings and adopted resolutions are made available to the members of the Supervisory Board not being members of the committee. The Chairman of a given committee chairs its proceedings. The Chairman also performs supervision over preparation of the agenda, distribution of documents, and preparation of minutes of the meetings of the committee.
Information regarding remuneration of members of the Supervisory Board for the financial year ended December 31, 2016 is included in Note 45 of the consolidated financial statements for the financial year ended December 31, 2016.