Current reports

Current Report No. 13 of 21 May 2008 on corporate governance rules contained in the document "the Code of Best Practice of WSE Listed Companies" that will not be applied or cannot be applied in the Bank

Legal basis: § 29 section 3 of the Rules of Giełda Papierów Wartościowych w Warszawie S.A. /the Warsaw Stock Exchange/

Pursuant to § 29 section 3 of the Rules of Giełda Papierów Wartościowych w Warszawie S.A. /the Warsaw Stock Exchange/, the Management Board of Bank Handlowy w Warszawie S.A. announces that the following corporate governance rules listed in the document “the Code of Best Practice of WSE Listed Companies” will not be applied or cannot be applied in the Bank:

1. Rules II. 3 and III. 9 regarding approval by the Supervisory Board of significant agreements with related entities,
2. Rule IV. 8 regarding changing the company authorized to audit financial statements.
   

Rules II. 3 and III. 9 of “the Code of Best Practice of WSE Listed Companies " will not be applied by the Bank only in respect of agreements concluded with related entities as part of the current operational activity and related, in particular, to liquidity management.
Taking into account the character and number of transactions executed as part of the current operational activity, from the operational point of view, it is not possible to obtain approvals of such transactions from the Supervisory Board. At the same time it should be pointed out that a report on the continuous monitoring of the Bank’s operations, including, among others, the information on transactions with related entities exceeding PLN 100,000 is submitted to the Supervisory Board on a monthly basis.

It is not possible to apply Rule IV. 8 of “the Code of Best Practice of WSE Listed Companies " because  the Bank is a member of the Capital Group of Citi and it is covered by the consolidated financial repot of Citigroup Inc., which applies different rules of cooperation with entities auditing financial statements. At the same time the Bank announces that it complies with the regulations in force imposing periodic rotation of statutory auditors, pursuant to DIRECTIVE 2006/43/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 May 2006 on statutory audits of annual accounts and consolidated accounts.