Fondul Proprietatea - A new ordinance for better corporate governance of state-owned companies

The manager salutes this ordinance and believes that it will lead to: (i) establishing transparent criteria and procedures for selecting members of the Boards of Directors and executive management; (ii) allowing the cumulative voting system for the appointment of the members of the Board of Directors; (iii) increased transparency and disclosure; (iv) stricter rules for reporting and approving the transactions with affiliates and (v) better protection of minority shareholders' rights. We view this piece of news as positive.