4 travnja 2017

Governance Code

Arena Hospitality Group is a public company listed on the Official Market of the Zagreb Stock Exchange. The key governing bodies are the General Assembly, the Board of Directors and the Executive Directors, who are elected by the Board of Directors.

The specific governance authorities and responsibilities of these governing bodies are regulated by the applicable Croatian legislation, Arena Hospitality Group's Articles of Association and other corporate governance regulations or prescribed procedures.

The headquarters are in Pula, which also manages all the operations in Croatia. The German operations have a regional management office in Berlin which is responsible for the operations in Germany and Hungary.

The Arena Hospitality Group Board of Directors consists of seven Directors, of whom two are independent and one is an employee representative.

Arena Hospitality Group applies the Corporate Governance Code of the Zagreb Stock Exchange as its code of corporate governance. The objective of the Corporate Governance Code is to establish high standards of corporate governance and business transparency for joint stock companies and, by duly and responsibly managing and supervising operations and management functions of such joint stock companies, to protect investors and other stakeholders.

The basic principles of the Corporate Governance Code are: (i) ensuring business transparency; (ii) clear description of decision making procedures of the Board of Directors and the Executive Directors; (iii) the avoidance of conflict of interest; (iv) the maintenance of efficient internal controls; and (v) the maintenance of an efficient system of responsibility.

Each year, Arena Hospitality Group is obliged to state, in its annual report and on its website, in the required form, whether it complies with the recommendations of the Corporate Governance Code. Arena Hospitality Group complies with the recommendations of the Corporate Governance Code based on the principle of “comply or explain”, so if Arena Hospitality Group fails to comply with the recommendations of the Corporate Governance Code, it must provide reasons for its non-compliance. Arena Hospitality Group abides by this principle and, where relevant, provided reasons for non-compliance with the recommendations of the Corporate Governance Code. Arena Hospitality Group last published the required form on the Zagreb Stock Exchange on 22 March 2017.

Since November 2016, Arena Hospitality Group’s shares have been listed on the Official Market of the Zagreb Stock Exchange.