General Meeting and shareholder rights

The General Meeting is convened pursuant to the provisions of the Code of Commercial Partnerships and Companies, mBank’s By-laws, and the Standing Rules of the General Meeting. Both the By-laws and the Standing Rules of the General Meeting are available on mBank’s website.

The General Meeting convened by the Management Board under the ordinary procedure is held once a year, no later than in June. The Supervisory Board may convene an Annual General Meeting if the Management Board does not convene it within the time limit set out in the By-laws and an Extraordinary General Meeting if the Supervisory Board considers it necessary. In addition, under specific circumstances, the shareholders have the right to convene a General Meeting or to request for a General Meeting to be convened.

The shareholders may participate in the General Meeting and cast their votes either in person or by proxies. One proxy may represent more than one shareholder.

Subject to the cases defined in the Code of Commercial Partnerships and Companies, the General Meeting is valid regardless of the number of shares represented at the General Meeting.

All matters submitted to the General Meeting are previously submitted to the Supervisory Board for consideration.

Subject to specific exceptions, resolutions of the General Meeting are passed in an open ballot by a simple majority of votes, unless the Code of Commercial Partnerships and Companies or mBank’s By-laws impose a stricter requirement for the passing of resolutions on specific issues. A secret ballot is required in the case of elections and motions to dismiss members of the bank’s authorities or liquidators, motions to call members of the bank’s authorities or liquidators to account, and motions concerning personal issues. In addition, a secret ballot is required if requested by at least one shareholder present or represented at the General Meeting.

Voting takes place with the use of a computer system, which also counts the votes. The By-laws of mBank and Standing Rules of the General Meeting do not provide for the possibility of voting by mail or with the use of electronic means of communication.

The following matters require a resolution of the General Meeting (in addition to other matters set out in the Code of Commercial Partnerships and Companies):

• examination and approval of the report of the Management Board on the bank’s operations and financial statements for the past financial year;
• adoption of resolutions on the distribution of profits or coverage of losses;
• vote of discharge of duties for members of the bank’s authorities;
• election and dismissal of Members of the Supervisory Board;
• amendment to the By-laws;
• increase or reduction of the bank’s share capital;
• adoption of resolutions concerning the redemption of shares, which set the rules of acquiring shares by the bank, in particular the amounts allotted to purchasing shares for redemption and funding sources and resolutions on redemption of shares, and in particular setting the policy of share redemption not regulated in the By-laws;

• creation and winding up of special purpose funds;
• issue of convertible bonds or preferred bonds;
• establishment of the principles of remunerating the Members of the Supervisory Board;
• liquidation of the bank or its merger with another bank;
• appointment of liquidators;
• matters submitted by the Supervisory Board;
• matters submitted by the shareholders in accordance with the By-laws;
• election of the entity authorised to audit financial statements as a statutory auditor of the bank.

The General Meetings of our bank take place in the bank’s headquarters in Warsaw and are broadcast on-line. The General Meetings may be attended by the representatives of the media.

The shareholders representing at least half of the share capital or at least half of the total number of votes in the company may convene an Extraordinary General Meeting. The shareholders appoint the chairperson of this meeting. The shareholder(s) representing at least one-twentieth of the share capital may request that the Management Board convene an Extraordinary General Meeting and that specific items be put on the agenda for this meeting. A request for convening an Extraordinary General Meeting submitted in writing or electronically should contain proposals of:

1. the General Meeting agenda,
2. the draft resolutions along with rationale for those resolutions.

If the General Meeting is convened by parties other than the Management Board, the Management Board is obliged to take necessary actions to convey the General Meeting.

Only persons who are shareholders of the bank sixteen days before the date of the General Meeting have the right to participate in the General Meeting. The shareholder(s) of the bank representing at least one-twentieth of the share capital may request that specific items be put on the agenda for the Annual General Meeting. The request should be submitted to the Management Board of the bank no later than twenty-one days prior to the date of the Annual General Meeting.

The shareholders may participate in the General Meeting and cast their votes either in person or by proxies.

A shareholder has the right to:

• vote, propose motions and raise objections;
• justify their position briefly;
• stand for election of the Chairperson of the General Meeting and propose a candidate for the Chairperson of the General Meeting to be noted in the minutes;
• take the floor in the course of the General Meeting and make a reply;
• submit draft resolutions concerning the items put on the agenda;
• propose amendments and additions to draft resolutions being on the agenda for the General Meeting before the discussion on the item covering the draft resolution concerned by the proposal is closed;
• propose formal motions relating to the proceedings and the voting procedure;

• propose candidates for the bank’s Supervisory Board in writing to the Chairperson of the General Meeting or orally to the minutes;
• review the book of minutes and request copies of resolutions authenticated by the Management Board;
• file a statement of claim for repealing a resolution of the General Meeting where the shareholder voted against the resolution of the General Meeting and after its adoption requested that his/her objection be recorded in the minutes or the shareholder was prevented from participating in the General Meeting without a sound reason, or the shareholder was absent from the General Meeting in the event of defective convening of the General Meeting or adoption of a resolution on a matter not included in the agenda;
• file a statement of claim against the company for declaring a resolution of the General Meeting adopted in breach of the law invalid.

The Management Board is obliged to provide the shareholder, at the shareholder’s request, with information concerning the company if this is justified by the assessment of an issue on the agenda. The Management Board should refuse information if:

• this could damage the company or its associated company or subsidiary, in particular due to disclosure of technical, trade or organisational secret of the company;
• this could expose a Member of the Management Board to criminal, civil or administrative liability.

In justified cases, the Management Board may provide information in writing no later than two weeks after the General Meeting is adjourned.