Attachment of the Resolution No 457 of the

Supervisory Board of “ENERGOMONTAŻ-PÓŁNOC” S.A.

of 15 December 2005

 

 

L E G A L  S T A T U S

OF

„ENERGOMONTAŻ-PÓŁNOC” Joint Stock Company

I. GENERAL PROVISIONS

§ 1.

1.   Wording of the Company is “ENERGOMONTAŻ-PÓŁNOC” Joint Stock Company.

2.   The Company can use abbreviation of the name: “ENERGOMONTAŻ-PÓŁNOC” S.A., as well as graphic mark distinguishing the Company.

 

§ 2.

 

Location of the seat of the Company is Warsaw capital city.

 

§ 3.

 

1.        Founder of the Company is the State Treasury.

2.        The Company has arisen as a result of transformation of state owned enterprise under the name of: Przedsiębiorstwo Montażu Elektrowni i Urządzeń Przemysłowych "ENERGOMONTAŻ- PÓŁNOC" in Warsaw.

3.        The Company acts on the ground of generally ruling provisions of law, especially on the grounds of the Code of Commercial Companies and this Status.

 

§ 4.

 

The Company acts on territory of the Republic of Poland and abroad.

 

II. SUBJECT OF ACTIVITY OF THE COMPANY

 

§ 5.

 

1.         Subject of enterprise of the Company is:

1)        Execution of construction/erection works: investment, rehabilitation and repair in power engineering, industrial, as well as general and civil engineering

2)        Construction of complete building objects or their parts, herein residential buildings for sale or hire

3)        Design of organization and technology of erection works of back-up facilities construction, technological equipment, power engineering, industrial and building plants, as well as developing of welding procedures of welding works

4)        Manufacturing of: steel structures and metal components of structure items, piping, tanks and their components, air and flue gas ducts, as well as building materials, woodwork and carpenter products for own use and commercial purposes

5)        Metalworking and applying of lining on metals, mechanical working of metal items

6)        Providing services: equipment/transportation, typography, computer science, in the range of start-up of equipment and plants, as well as laboratory testing of materials and welds using non destructive, destructive and metallographic methods

7)        Purchase, planning/development of sites/estates on own account, hire of estates on own account, as well as management of estates by order

8)        Hire of machines and equipment without operators

9)        Carrying out extra-school forms of occupational education

10)       Providing services in the range of carrying out book-keeping

11)       Providing services of acting as an agent for domestic and foreign subjects

12)       Providing tourist services in owned resting centers

13)       Carrying out commercial activity in the range defined in points 1, 2, 3, 4 and 5

14)       Trade in electric energy

Licensed activity or an activity required a permit would be taken up after obtaining  concession or permit.

2.          In the range of activity subject defined in subparagraph 1, points 1 and 2, the Company may act as investor, substituting investor, general contractor and general supplier.

 

 

III. INITIAL CAPITAL

 

§ 6.

 

Founding fund and enterprise fund in enterprise, described in § 3, subparagraph 2, have formed jointly ownership capital of the Company.

 

§ 7.

 

Initial capital of the Company amounts to PLN 55 596 436.00 (fifty five million five hundred ninety six thousand four hundred thirty six Polish zlotys) and divides itself into 15 884 696 (fifteen million eight hundred eighty four thousand six hundred ninety six) shares with nominal value PLN 3.50 (three Polish zlotys and fifty groszes) each, whereof in “A” series is 2 162 000 (two million one hundred sixty two thousand ) shares, in “B” series 155 000 (one hundred fifty five thousand ) shares, in “C” series 1 400 000 (one million four hundred thousand), in “D” series 617 696 (six hundred seventeen thousand  six hundred ninety six) shares, and in “E” series is 11 500 000 (eleven million five hundred thousand) shares.

 

 

§ 71.

 

1.    The Board of the Company is entitled (but not bound) to execute, until June 9, 2008, one or several increasing(s) of initial capital by max amount not exceeding PLN 27 877 500.00 (in words: twenty seven million eight hundred seventy seven thousand five hundred of Polish zlotys) (target capital). The Board can execute the above said entitlement after obtaining Supervisory Board consent for each accomplishment of increasing of initial capital of the Company. Regardless of the above, resolutions concerning determination of issue price and transfer of shares against non-pecuniary contributions additionally require consent of Supervisory Board of the Company.

 

2.    Executing increase of initial capital within the limits of authority, described in subparagraph 1, the Board of the Company may transfer the shares against pecuniary and non-pecuniary contributions.

 

3.    The resolution of the Board of the Company on increase of initial capital within the limits of authority, described in subparagraph 1, requests form of notarized deed and replaces resolution of General Assembly of the Shareholders concerning increase of initial capital.

 

4.    Provisions of subparagraphs 1 through 3 do not infringe the powers of General Assembly to ordinary increasing of initial capital during the time of benefit of the Board from authority, described in subparagraph 1.

 

§ 72.

 

1.    The shares are transferable.

 

2.    During the period when the shares admitted to public circulation, on which pledge or usufruct has been established, are recorded on accounts of securities in brokerage house or in bank carrying out accounts of securities, the shareholder is entitled to right to vote from these shares.

 

3.    The shares of the Company could be redeemed in a manner foreseen in the Code of Commercial Companies.

 

4.    Redemption is held on the grounds of resolution of General Assembly and requires decrease of initial capital, unless relevant regulations of the Code of Commercial Companies foreseen possibility of shares redemption without decrease of initial capital.

The resolution should specify in particular legal grounds of shares redemption and amount of remuneration to which the shareholder of redeemed shares is entitled or substantiation of shares redemption without remuneration, as well as method of decrease of initial capital, unless in accordance with regulations of the Code of Commercial Companies, redemption of shares is held without decrease of initial capital.

 

5.    The Company could redeem the shares on approval of the shareholder by way of their purchase by (voluntary redemption).

 

6.    Voluntary redemption is allowable in each case when the shareholder, whose shares would be redeemed, states consent for redemption conditions, in particular when number of the shares which would be redeemed, date of redemption, amount of remuneration or consent for redemption without remuneration are agreed as well as date of remuneration payment.

 

7.    When redemption is held against remuneration, remuneration is paid to the Shareholder:

a)   During 30 days since the date of receipt by the shareholder a notification about passing of resolution concerning shares redemption, if redemption is held in situations they are told about in Art. 360 § 2 and Art. 457 §1 of Code of Commercial Companies

b)   During 30 days since the date of delivery of decision about entry into register of change of initial capital, in remaining situations.

 

8.    In exceptional situation, when payment of remuneration endangers financial liquidity of the Company, payment of remuneration could be paid in max 10 installments; therewith the last installment should be paid during two years since the date of redemption, at the latest.

 

9.    Detail principles of redemption of shares of the Company could determine Regulations of shares redemption, formulated by the Board and accepted by Supervisory Board.

 

§ 73.

 

1.    Initial capital could be increased by way of change of Legal Status on a base of resolution of General Assembly through issue of new shares or increase of nominal value of existing shares of the Company, therewith on principles determined in regulations of Code of Commercial Companies, increase of initial capital could be made from reserve capital (funds).

 

2.    The Company can issue bonds, therein bonds exchangeable for shares or bonds with right of priority. Total number of issued bonds, form, method and principles of eventual exchange of bonds for shares will be determined in particular resolutions of General Assembly.

 

§ 8.

 

All shares of the Company are bearer’s shares.

 

IV. AUTHORITIES OF THE COMPANY

 

 

§ 9.

 

Authorities of the Company are:

1/   The Board of the Company

2/   Supervisory Board

3/   General Assembly

 

 

A. THE BOARD OF THE COMPANY

 

§ 10.

 

1.    The Board of the Company consists of two (2) to five (5) persons appointed by Supervisory Board for a period of common term of office, which lasts three years.

 

2.    Supervisory Board determines the number of members of the Board within above indicated limits.

 

3.    Supervisory Board appoints President of the Board from the complement of the Board.

4.    Supervisory Board can dismiss all members of the Board, including also President of the Board, at any time before expiry of the term of office.

Individual terms of office of the members of the Board, who held mandates on the day of entering into register changes in Legal Status of the Company, accepted by resolution of Extraordinary General Assembly of December 15, 2005, on this day transform themselves into common term of office. As a beginning of such common term of office is deemed 5 June 2003.

 

5.    In case of resignation or dismissal of the member of the Board (therein President of the Board) Supervisory Board is obliged to appoint immediately another person in his place or delegate the member of Supervisory Board to execute temporary activities of the member of the Board, for a period not longer than three months, until the moment of appointment of a new member of the Board.

 

6.    Delegation of the member of Supervisory Board to execute temporary activities of the member of Company Board (therein President of the Board) in a manner of Art. 383 § 1 of the Code of Commercial Companies, caused suspension of his activity in Supervisory Board and imposes on him a ban on carrying out competition activity toward the Company during the time of delegation.

 

§ 11.

 

1.    The Board of the Company carries out affairs of the Company and represents it outside.

 

2.    All matters connected with running of the Company and not reserved to competence of General Assembly or Supervisory Board by law or this Status belong to scope of the Board activities.

 

3.    Resolution of the Board is required for all matters exceeding scope of ordinary management, which will be specified in Regulations of the Board, therein in particular purchase or disposition of immovables, perpetual usufruct or participation in immovable, under condition of putting forward a motion to and obtaining consent of Supervisory Board.

 

4.    Regulations of the Board describe in detail a manner of the Board activity. Supervisory Board approves Regulations of the Board.

 

5.    Should the need arise; resolutions of the Board could be passed in writing manner (circularizing). Passing of the resolution in this manner requires casting of the votes by all members of the Board, therewith the members voting for passing of the resolution sign themselves under the drafts, which thereafter will submit to President of the Board, meanwhile the members of the Board voting against or holding up from voting, note in writing President of the Board about the above. Meetings of the Board can be executed also with use of the means of direct communication (e.g. by phone or with the aid of videoconference), each time in a manner enabling simultaneous communication of all members participating in it. As a place of the meeting executed by phone is deemed the place of person presiding over the meeting.

In case of voting in writing and in case of voting with the aid of the means of direct communication, the resolutions are valid if all members of the Board have been informed about content of drafts of the resolutions.

President of the Board informs the Board about the resolutions passed in writing manner or with use of the means of direct communication at the next meeting of the Board.

Materials documenting such voting should be incorporated into the book of minutes of the Board.

 

§ 12.

 

1.    To make a declaration of will on behalf of the Company are entitled two members of the Board acting jointly or one member of the Board acting jointly with a proxy.

 

2.    To appoint proxy consent of all members of the Board is required.

The proxy could be dismissed by decision of each member of the Board.

 

3.    For execution of particular activity, the Board can appoint legal representatives acting on the base determined in the Civil Code.

 

4.    Resignation, death, dismissal from the complement of Supervisory Board or other reason, causing impossibility of execution of function by the member of the Board, results in carrying out supplement election at the nearest session of General Assembly.

Until supplement of the number of the Board members, its undertaking activities, therein its resolutions are valid, if number of the members of the Board is equal or exceeds minimum determined in the Legal Status.

 

§ 13.

 

In agreements between the Company and the members of the Board, as well as in disputes between them, Supervisory Board or legal representative appointed by resolution of General Assembly represents the Company.

In case of agreements concluded by Supervisory Board, Supervisory Board approves (in form of resolution) the agreement signed by the member of the Board and delegates one of its members to sign such agreement.

 

 

B. SUPERVISORY BOARD

 

§ 14.

 

1.    Supervisory Board consists of five (5) to seven (7) members, appointed by resolution of General Assembly of the Company.

 

2.    The number of the members of Supervisory Board is settled by General Assembly of the Company, within the limits shown above.

 

3.    The members of Supervisory Board are appointed for a period of common term of office, which lasts three years.

 

4.    Particular members as well as the whole Supervisory Board can be dismissed at any time before expiry of the term of office.

Individual terms of office of Supervisory Board members, who held mandates on the day of entering into register changes in Legal Status of the Company, accepted by resolution of Extraordinary General Assembly of December 15, 2005, on this day transform themselves into common term of office. As a beginning of such common term of office is deemed June 29, 2005.

 

5.    Resignation, death, dismissal from the complement of Supervisory Board or other reason causing decrease of the number of Supervisory Board members results in carrying out of supplement election by the nearest General Assembly.

Until supplement of the number of the Supervisory Board members, its undertaking activities, therein its resolutions are valid, if number of the members of Supervisory Board is equal or exceeds minimum determined in the Legal Status.

 

§ 15.

 

1.    Supervisory Board elects from its body the Chairman and Deputy Chairman of Supervisory Board and, should the need arise, Secretary of Supervisory Board.

 

2.    The Chairman of Supervisory Board summons Board sessions and presides over them. The Chairman or Deputy Chairman of Supervisory Board of previous cadence or a person authorized by one of them summons first session of a new-elected Board and presides over it until the election of a Chairman.

 

3.    Supervisory Board can dismiss the Chairman, Deputy Chairman and Secretary of Supervisory Board with such a result that dismissed person becomes an ordinary member of Supervisory Board.

 

§ 16.

 

1.    Supervisory Board holds the sessions once a quarter, at least.

 

2.    The Chairman or Deputy Chairman of Supervisory Board has an obligation to summon session of Supervisory Board, also at written request of the Board of the Company or at least two members of Supervisory Board.

The session should be held during two weeks after the request

 

§ 17.

 

1.    Sessions of Supervisory Board are valid only, when all members have been invited.

Written notice about each session of Supervisory Board with indication of place, date, time and agenda of the session should be delivered to each member of Supervisory Board by fax, registered letter, courier, e-mail or another method of data transmission, not later than fourteen (14) days before the session, at the address for correspondence delivered for this purpose to the Chairman of Supervisory Board.

 

2.    The members of Supervisory Board can participate in passing of resolutions of Supervisory Board, casting its voice in writing by intercession of another member of Supervisory Board.

Cast of voice in writing cannot concern the matters introduced into agenda during the session, and the member of Supervisory Board, casting the voice in writing, cannot be deemed as present at the session.

 

3.    Should the need arise; resolutions of the Supervisory Board could be passed in writing manner (circularizing).

Passing of the resolution in this manner requires casting of the votes by all members of Supervisory Board, therewith the members voting for passing of resolution sign themselves under the drafts, which thereafter will submit to President of the Board, meanwhile the members of the Board voting against or holding up from voting, note in writing President of the Board about the above. Meetings of Supervisory Board can be executed also with use of the means of direct communication (e.g. by phone or with the aid of videoconference), each time in a manner enabling simultaneous communication of all members participating in it. As a place of the session executed by phone is deemed the place of person presiding at the session.

In case of voting in writing and in case of voting with the aid of the means of direct communication, the resolutions are valid if all members of Supervisory Board have been informed about content of drafts of the resolutions.

President of Supervisory Board informs Supervisory Board about the resolutions passed in writing manner or with use of the means of direct communication at the next session of Supervisory Board. Materials documenting such voting should be incorporated into the book of minutes of Supervisory Board. Passing of resolutions in the above described manner does not apply to: election of the Chairman and Deputy Chairman of Supervisory Board, appointment, dismissal and suspension from activities of the members of the Board and abrogation of such suspension.

 

4.    Supervisory Board passes the resolutions with simple majority of votes at a presence of at least half of the complement of Supervisory Board. At equal number of affirmative votes and votes against, vote of the Chairman is decisive.

 

5.    Supervisory Board adopts its regulations, which describes in detail procedure of Supervisory Board activity.

 

 

 

§ 18.

 

1.    Supervisory Board exercises continuous supervision over activity of the Company.

2.    Apart from the cases reserved by provisions of this Status or regulations of the Code of Commercial Companies, to specific entitlements of Supervisory Board belong:

1)   Valuation of reports of the Board from activity of the Company and Capital Group and financial reports of the Company and Capital Group, to the extent of their conformity with the books and documents, as well as with facts of a case

2)   Valuation of the Board motions about a method of distribution of profit or loss covering

3)   Presentation of written yearly report to General Assembly from the results of activities described in points 1 and 2

4)   Presentation of its own yearly valuation concerning situation of the Company

5)   Suspension of particular members of the Board or the whole Board from duties, due to important reasons

6)   Delegation of the member or members of Supervisory Board, however for a period not longer than three months, to execute temporarily activities of the members of Company Board in case of suspension, dismissal or resignation of particular members of the Board or the whole Board or when the members of the Board could not exercise their activities due to other reasons

7)   Acceptance of Regulations of the Board of the Company

8)    Settlement of principles of remuneration of the Board members

9)    Choosing of the auditor carrying out audit of financial report of the Company and Capital Group, in accordance with binding law regulations

10) Upon the motion of the Board, expression of consent for foundation of the commercial law companies and entering into partnership, as well as for holding of the shares in enterprises or stocks or bringing-in contribution for cover of the shares in enterprises or stocks in the companies, as well as for purchasing or disposition of the shares in enterprises or stocks, if hitherto existing capital commitment of the Company in relevant company, or commitment to be obtained by the Company as a result of purchasing or holding of the shares in enterprises or stocks in the companies, calculated according to purchase price (or value of another performance of the purchaser) or value of contribution bringing-in for cover of the shares in enterprises or stocks (together with agio), exceeds PLN 2 500 000 (two million five hundred thousand) or equivalent of this amount in foreign currencies, except of holding of stocks or the shares in enterprises in a way of exchange of active debts on a base of Act of February 3, 1993 on financial restructuring of enterprises and banks

11) Upon the motion of the Board, expression of consent for exercising by the Company a right to vote at general assemblies and assemblies of the shareholders of the companies, in which the Company is entitled to exercise votes from shares in enterprises or stocks, if value of shares in enterprises or stocks owned by the Company, set down according to purchase price (or value of another performance of the purchaser) or value of contribution bringing-in for cover of the shares in enterprises or stocks (together with agio), exceeds PLN 2 500 000 (two million five hundred thousand) or equivalent of this amount in foreign currencies, in the cases of:

-        Merger with another company and transformation of it

-        Disposition or hire of enterprise of the company or establishment of rights in property on it

-        Change of agreement or legal status

-        Dissolution or liquidation of the company

-        Increasing of initial capital of the company

12) Upon the motion of the Board, granting permission on establishment of foreign branches

13) Upon the motion of the Board, granting permission for purchase and disposition of immovables or share in immovable or of perpetual usufruct

14) Granting permission for conclusion of any agreement (including its content) between the Company and the members of the Board, members of Supervisory Board, their relatives and related up to the second degree, persons being in common household with them, or on behalf of these persons or subjects directly or indirectly controlled by these persons

15) Expression of consent to accommodate with loan, if the value of relevant loan would exceed the amount previously specified by Supervisory Board for relevant accounting year (or at lack of such resolution, in each case), unless accommodation with such the loan:

a)   Had been foreseen in financial plan for relevant year or:

b)   Is for the subjects, in which the Company has over 50% of votes at shareholders assembly or general assembly and within one or a few related actions does not exceed amount of PLN 2 500 000 (two million five hundred thousand) or equivalent of this amount in foreign currencies

16) Expression of consent to draw up bills of exchange, issue of guaranties, sureties, transfer of ownership or assignment for protection or protection in another form, including encumbrance of property components of the Company by pledge or mortgage, if the value of relevant protection or encumbrance would exceed amount of PLN 2 500 000 (two million five hundred thousand) or equivalent of this amount in foreign currencies, unless such the encumbrance or protection had been foreseen in financial plan for relevant year

17) Acceptance of annual financial plans of the Company

18) Acceptance of strategic plans of the Company

19) Giving opinions on creation and liquidation of funds

20) Expression of consent for contracting a loan or another obligation, which on base of one or a few related actions exceeds equivalent of PLN 2 500 000 (two million five hundred thousand) or equivalent of this amount in foreign currencies, excluding:

a)     Expression of consent for submitting of offers and concluding of contracts, concerning execution of industrial production and services within the scope of construction/erection, laboratory and equipment/transportation activities

b)     Actions, execution of which requires consent of General Assembly

21) Upon the motion of the Board, expression of consent for conclusion of an agreement with sub-issuer according to Art. 433 § 5 of the Code of Commercial Companies

 

3.    When in this Status is told about:

1) One or a few related actions; by this are understood actions undertaken with relevant subject (or subjects controlled by such subject or toward which the subject is controlled in understanding of regulations of the Code of Commercial Companies binding on December 15, 2005) during eighteen months previous to execution of the action

 

2) Disposition or purchase; by this is understood accordingly disposition or purchase, both payable and gratuitous, therein also bringing-in of the subject of disposition or purchase as non-pecuniary contribution for cover of initial capital

 

3) Competence of Supervisory Board to express consent for execution of determined actions means that the Board is obliged to turn to Supervisory Board for expression of consent before execution of such action.

 

4) Execution of determined legal action (e.g. purchase, disposition, holding); the above include also execution of preliminary action or under condition as well as both, obligational as well as decretive one

 

5) Equivalents of determined value in Polish zlotys; by this is understood an equivalent of determined currency, calculated according to average rate of exchange of such currency, published by the National Bank of Poland on the day of lodging a motion for expression of consent to execute determined action.

 

§ 19.

 

1.    The members of Supervisory Board fulfill their rights and duties in person.

 

2.    Remuneration of the members of Supervisory Board is determined by General Assembly

 

3.    Supervisory Board determines remuneration of the members of Supervisory Board, delegated to execute temporarily activities of the member of the Board.

 

4.    The members of Supervisory Board cannot:

1)   Occupy themselves with carrying out competitive activity on territory of the Republic of Poland, and

2)   Be the members of authorities of the subject carrying out competitive activity on territory of the Republic of Poland,

unless General Assembly grants its explicit consent.

Before appointment, candidate to Supervisory Board of the Company is bound to deliver assurance that he does not carry on competitive activity or pointing out which competitive activity towards the Company he carries out.

 

 

C. GENERAL ASSEMBLY

 

§ 20.

 

1.    General Assembly holds debates as ordinary or extraordinary ones

2.    The Board of the Company summons Ordinary General Assembly and it should be held during six months after expiring of accountancy year.

3.    Extraordinary General Assembly is summoned by the Board of the Company initialed by itself or on written petition of Supervisory Board or on written petition of the shareholders representing at least 1/10 of initial capital.

4.    Summoning of Extraordinary General Assembly on petition of Supervisory Board or the shareholders should occur during two weeks since the date of submission of the petition.

5.    Supervisory Board summons General Assembly:

1)   In case when the Board of the Company had not summoned Ordinary General Assembly within attributed time

2)   If despite the petition, described in subparagraph 3, the Board of the Company had not summoned General Assembly within the time described in subparagraph 4.

 

 

§ 21.

 

1.        General Assembly can pass the resolutions only about the matters included in agenda.

2.        The Board draws up the agenda.

3.        Supervisory Board and the shareholders representing at least 1/10 of initial capital could require placing of particular matters on the agenda of the next General Assembly.

4.        If such requirement is submitted after announcement about summoning of General Assembly, it will be treated then as a petition to summon Extraordinary General Assembly.

 

 

§ 22.

 

General Assemblies are held in Warsaw.

 

§ 23.

 

1.    General Assembly can pass the resolutions insofar there are present representatives of the shareholders having shares, constituting at least 35% of votes from general number of the votes in the Company.

2.    Unless this Status stipulates otherwise, each share gives the right to one vote at General Assembly.

§ 24.

 

1.          The resolutions of General Assembly pass with an absolute majority of cast votes, unless provisions of the Code of Commercial Companies and this Status stipulate otherwise.

2.          In the case foreseen in Art. 415 § 2 of the Code of Commercial Companies is required majority of ¾ of cast votes to pass a resolution.

 

§ 25.

 

1.        Voting is open. Secret ballot is ordered at election and over the motions for dismissal of the members of authorities or liquidators of the Company, or for holding them responsible, as well as in personal affairs. Furthermore, secret ballot is ordered on the motion of even one of the present persons entitled to vote.

2.        The resolutions concerning change of the subject of enterprise of the Company always pass in open voting by roll call.

 

§ 26.

 

1.    The Chairman of Supervisory Board or his Deputy opens General Assembly, and then from among the persons entitled to vote at General Assembly, the Chairperson is elected.

In case of absence of these persons, President of the Board or the person appointed by the Board opens General Assembly.

2.    General Assembly adopts its regulations, which determines in detail procedure of debates.

 

§ 27.

 

1.    To the powers of General Assembly belong in particular:

1/  Investigation and acceptance of reports of the Board from activity of the Company and Capital Group and financial reports of the Company and Capital Group for last accountancy year

2/  Passing of resolution about distribution of profit or covering of loss

3/  Giving of acknowledgement of fulfillment of duties to the members of Company bodies

4/  Change of the subject of enterprise of the Company

5/  Change of Legal Status of the Company

6/  Increasing or decreasing of initial capital and redemption of shares

7/  Merger of the Company and transformation of the Company

8/  Dissolution and liquidation of the Company

9/  Issue of exchangeable bonds and bonds with right of priority of shares holding

10/  Disposition and hiring of enterprise or its organized part, as well as granting limited rights in property on them

11/  All decisions concerning claims for redress of damage inflicted at creation of the Company or at exercise of administrative or supervisory duties

2.    Apart from cases described in subparagraph 1, resolution of General Assembly is required for cases determined in this Status or at lack of regulations in it, in the Code of Commercial Companies

 

3.    General Assembly executes the powers listed in subparagraph 1, p. 1, 2, 4, 5, 6, 7, 8, 9, 10, 11 upon the motion of the Board of the Company, submitted together with an opinion of Supervisory Board. Petition of the shareholders concerning these matters should have opinion of the Board of the Company and Supervisory Board.

 

§ 28.

 

With observance of relevant legal provisions, change of the subject of enterprise activity of the Company could be done without obligation to buy out shares but effectiveness of the resolution of General Assembly concerning essential change of enterprise activity of the Company depends on repurchase of shares of these shareholders that do not agree on the change.

The shareholders present at General Assembly that had voted against the resolution should, during two days since the day of General Assembly, and absent ones during one month since the day of announcement of the resolution, submit to the Company their shares or evidence of their submitting for the Company disposal. In a contrary case, these shareholders will be deemed as accepting the change.

 

 

V. ECONOMY OF THE COMPANY

 

§ 29.

Organizational regulations established by the Board of the Company determines organization of enterprise of the Company

 

§ 30.

 

1.    The Company carries out reliable accountancy in accordance with provisions of law in force.

2.    Calendar year is an accounting year of the Company.

 

§ 31.

 

1.        The Company creates the following capitals:

1/ Initial capital

2/ Supplementary capital

2.        The Company could create other capitals and funds on the grounds of resolution of General Assembly.

 

§ 32.

 

The Board of the Company is bound to, within the time limits determined in Regulations of the Board, draw up and submit to Supervisory Board reports from activity and financial reports of the Company and Capital Group.

These documents (after auditing by an auditor), undergo to investigation and acceptance of General Assembly, within the time limits:

-    Not later than during six months since balance day (with respect to the Company)

-    Not later than during eight months since balance day (with respect to the Capital Group)

 

§ 33.

 

Clear profit of the Company could be in particular allocated to:

1/ Write-offs on reserve capital

2/ Investments

3/ Write-offs on reinforcement of reserve capitals created in the Company

4/ Dividend for the Shareholders

5/ Other targets determined by resolution of competent body of the Company.

 

 

VI. FINAL PROVISIONS

 

§ 34.

 

The Company inserts its announcements in “Monitor Sądowy i Gospodarczy” (“Judicial and Economic Gazette”).

§ 35.

 

In cases unregulated in this Status, have application provisions of the Code of Commercial Companies and other provisions of law in force.