Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 41 Three meetings of the Supervisory Board were held in 2016. New Statutes of the Supervisory Board of ŽP a.s. were approved at the March meeting, and remunera- tion for Supervisory Board members set by the Gen- eral Meeting was approved in June. At the September meeting, the Supervisory Board adopted a resolution by which all Supervisory Board members agreed that the Supervisory Board would carry out the activities of the Audit Committee under Act No. 423/2015 Coll. The Supervisory Board had the conditions to supervise the actions of the Board of Directors and the Compa- ny’s business activities. From January to October 2016, monthly joint meetings of the Board of Directors and the Supervisory Board were held to share the latest in- formation on the economic and financial position of ŽP a.s. (and its subsidiaries) and on the balance of the Company’s assets, liabilities and receivables. Throughout the year, a Supervisory Board representa- tive attended daily Company management operational meetings, and weekly executive management meet - ings. The Supervisory Board’s control activities iden- tified no breach of duties by Members of the Board of Directors, or irregularities in the Company’s financial performance. Železiarne Podbrezová a.s. carried out its business activities in accordance with legislation, the Articles of Association and the General Meeting’s in- structions in 2016. The Supervisory Board examined the separate and consolidated financial statements for the period end - ed 31 December 2016, and familiarised itself with the Auditor’s Report prepared by Deloitte Audit s.r.o. The Supervisory Board identified no irregularities and, therefore, recommends that the General Meeting ap- prove both financial statements. The Supervisory Board examined the Board of Direc- tor’s proposal for the distribution of the 2016 profit, and the payout of dividends and remuneration from Re- tained earnings from previous years. The Supervisory Board recommends that the General Meeting approve the Board of Director’s proposals. The Supervisory Board recommends that the Gener- al Meeting approve Deloitte Audit s.r.o., SKAu licence No. 014, as auditor of the financial statements for the period beginning on 1 January 2017. In Podbrezová, 24 May 2017 Ing. Ján Banas Chairman of the Supervisory Board REPORT ON THE ACTIVITIES OF THE SUPERVISORY BOARD IN 2016