The Company’s corporate policy is founded on the principle of respect for the rights and legal interests of its shareholders and is conducive to smooth and effective functioning of the Company, including such areas as the increase in its equity value, the creation of new jobs and maintaining its financial stability and profitability.
The basis of successful operation and investment attractiveness of the Company is trust which exists between all the participants of corporate relations. The Company’s corporate policy is founded on the principles of creating trust in relations pertaining to management of the Company. The Company fully complied with international ethical standards and the requirements set forward by the London Stock Exchange.
The Corporate Code sets out internal control procedures for Pharmstandard financial and business operations. In particular, it specifies:
- procedures for the internal controls over our financial and business operations,
- procedures for the internal audit of compliance with internal controls.
In addition, the Corporate Code regulates the use of insider information by Pharmstandard’s management and employees. Thus, the Corporate Code provides that members of the Company’s Board of Directors, Chief Executive Officer and internal auditors shall use insider information (as defined by the Corporate Code) only for the benefit of the Company, pursuant to applicable law and in accordance with the Corporate Code. The Corporate Code also provides for certain procedures implemented to ensure that all relevant individuals observe regulations set forward by this document.
The Corporate Code also establishes the requirement for the members of the Company’s Board of Directors and the General Director to disclose any trading in the Company shares.
The Company’s governing bodies are:
- Annual General Meeting,
- Board of Directors,
- Board of Directors Committees,
- Management Board.
Dividend Policy is the Company’s policy in the area of profit distribution, i.e. distribution of profit among its shareholders. Dividend policy is shaped by the Board of Directors. Depending on the Company’s objectives, and the current / foreseeable economic situation, the Company’s profit can be reinvested, retained as undistributed corporate profit or paid out as dividends. Dividend policy is a constituent part of the general financial policy of the Company aimed at optimisation of the ratio between utilised and capitalised profits to maximise the market value of the Company.
The decision about paying out dividends will be made at the annual shareholders General Meeting which will take place on 25.05.2012. The Board of Directors has expressed their recommendation to the General Meeting to pay out no dividends on ordinary shares for the financial year which ended on December 2011. This will allow the Company to retain earnings for possible M&A deals and development of biotech projects.
Annual General Meeting
The Annual General Meeting attended by all shareholders is the Company’s highest decision-making body. The Company will announce the date and location of the General Meeting in a special press release. The Annual General Meeting takes place in the period from 2 to 6 months precisely after the end of a financial year. Shareholders (or a single shareholder) who own no less than 2% of voting shares of the Company, are entitled to include items into agenda of the Annual General Meeting and to put forward candidatures for the Board of Directors and the Audit Committee.
An Extraordinary General Meeting of shareholders is convened following a unilateral decision of the Company’s Board of Directors, a request of the Company’s Audit Committee and of shareholders (or a single shareholder) who own not less than 10% of the Company’s shares on the date of putting forward their request.
An announcement about the decision to hold a General Meeting should be made not later than 30 days prior to the date it is convened. In some cases there may be a statutory requirement to make an announcement about a General Meeting no later than 70 days before it is convened. The sphere of competence of a shareholders' meeting, as well as the decision making procedures, are established by law and the Company’s Charter.