Integrated Annual Report 2014

Avoidance of conflicts of interest

Members of the Supervisory Board of Grupa LOTOS make IFRS-compliant disclosures on related-party transactions in accordance with IAS 24 Related Party Disclosures for the purposes of the Company’s financial statements. According to the representations made in the first half of the year, two members of the Company’s Supervisory Board were employed at the Ministry of State Treasury, which they both claimed had no influence on their duties on the Supervisory Board. At present (since June 30th 2014), one member of the Supervisory Board is employed at the Ministry of State Treasury and upholds his previous representation that this has no influence on his duties on the Supervisory Board. The remaining Supervisory Board members declare they have no economic links, family ties or other relations with a shareholder holding 5% or more of the total vote at the General Meeting of Grupa LOTOS and which might sway their position on matters decided by the Supervisory Board.

The Company is not aware of any conflicts of interest that arose or could have arisen in 2014, which the member concerned should have notified the Supervisory Board about, and as a result of which the member should refrain from taking the floor and voting on resolutions pertaining to the matter giving rise to such conflict of interest.

In addition to the above requirements, upon appointment, members of the Company’s Supervisory Board are required to make a representation to the effect that they are not engaged in any activities competing with the Company’s business, and that they are not partners in any competing partnership under civil law or another type of partnership, nor members of a governing body of an incorporated company or of any other competing legal entity.