The system for supervising the operations of subsidiaries of the Istrabenz Holding Company is based on relations which are clearly set out in the Articles of Association, partnership agreements, Rules of Procedure of the Supervisory Boards and the General Meetings of Shareholders, along with an efficient controlling system.

An important role in the supervision of operations is played by the General Meetings of Shareholders and the Supervisory Boards of subsidiaries. For some major deals the managers and Management Boards have to obtain the approval of the Supervisory Board or the General Meeting of Shareholders.

The Management Board of the Istrabenz Holding Company strives to expand uniform management and governance standards and to improve the system for supervising the operations of the new subsidiaries.

As uniform standards are becoming increasingly important for regulating relations between the parent company and the bodies of subsidiaries, we provide for the greater transparency of operations and functioning of these management and supervision bodies. Moreover, we promote the introduction and application of standards in companies at lower hierarchical levels within the Istrabenz Group, i.e. ‘sub-subsidiaries’ and ‘sub-sub-subsidiaries’.