DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

The Supervisory Board:
1. appoints and revokes the Management Board of the Company;
2. examines and reviews business records, documentation, cash records, securities and other documents
related to the operations of the Company;
3. gives prior approval on the decisions of the Management Board where required by these Articles of
Association;
4. submits reports to the Shareholders’ Assembly of the Company on the supervision carried out, especially
with respect to financial operations and their consistency with business records,
5. carries out other work in accordance with the law and corporate rules and regulations
GENERAL SHAREHOLDERS ASSEMBLY
The Shareholders Assembly is composed of shareholders and/or their proxies. The Shareholders Assembly decides
on matters determined by the law and these Articles of Association, in particular:
1. passes the Articles of Association and their amendments;
2. appoints and revokes the members of the Supervisory Board;
3. makes decisions on annual financial statements and use of profit;
4. appoints the auditor of the Company;
5. decides on increase or decrease in the capital stock of the Company;
6. decides on status changes and dissolution of the Company;
7. carries out other work in accordance with the law and these Articles of Association.
The meeting of the Shareholders Assembly of the Company is convened by the Management Board of the Company.
The Management Board of the Company is obligated to convene the Shareholders Assembly when requested by
the Supervisory Board or shareholders who hold at least 20% of the capital stock of the Company. The Management
Board and the chairperson of the Supervisory Board participate in the work of the Shareholders Assembly.
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HEP ANNUAL REPORT 2010 CHAPTER 2 - CORPORATE GOVERNANCE