Rules of Corporate Governance

"Polimex-Mostostal" SA (Issuer, Company) is subject to the corporate governance rules contained in the document "Code of Best Practice for WSE Listed Companies 2016", in the wording annexed to Resolution No. 26/1413/2015 of the Supervisory Board of the Warsaw Stock Exchange S.A. from October 13, 2015. The content of the set of rules is available on the website of the Warsaw Stock Exchange SA. www.corp-gov.gpw.pl.

Corporate Governance Principles / Corporate Governance are a set of rules defining internal and external relations of supervised institutions, including relations with shareholders and clients, their organization, functioning of internal supervision and key internal systems and functions, as well as statutory bodies and rules their cooperation.

The first Polish corporate governance principles were developed by the Good Practice Committee consisting of representatives of various circles associated with the capital market and were recorded in the document "Good practices in public companies 2002." Their amendment was recorded in the document "Good practices 2005".

In 2007, the Supervisory Board of the Warsaw Stock Exchange, at the request of the Exchange Management Board, adopted new corporate governance rules under the name "Best Practices of Companies Listed on the Warsaw Stock Exchange." The new document began to apply from January 1, 2008.

The "Good Practices of Companies Listed on the Warsaw Stock Exchange" introduced in Poland do not consist in imposing on all listed companies an absolute obligation to implement the rules, but introducing them on the basis of the "comply or explain" principle, i.e. apply or explain. It means that the issuer should declare what rules he wants to follow, and if he does not want to apply some rules, explain the reason for the decision.