ANNUAL REPORT 06 - Bosnalijek dd

PRINCIPLES OF THE CORPORATE MANAGEMENTManagementSupervisory BoardThe Management is responsible for organisation of work and managingthe business, agency and representing the Company, as well as forlegality of the business. It is obliged to inform Supervisory Board onresults of the business, at least once in three months. The managementshall submit report to shareholders and it is obliged to put into effect thedecision of Company Shareholders Assembly.Bosnalijek Management consists of Company’s Chief Executive Officer andexecutive directors, of whom every is responsible for a certain area of thebusiness, reaching and supervising implementation of operationaldecisions.Supervisory Board is in charge for supervising the work of CompanyManagement, about which it is obliged to inform Company ShareholdersAssembly. The Supervisory Board shall have meetings at least once inthree months, and more frequently if necessary.Supervisory Board consists of a president and four members, who areelected for a mandate lasting 4 years.With observing principles of corporative management, Bosnalijek continuously fulfils its obligations of protecting interests ofshareholders and regular reporting on its business operations. Company management bodies are obliged to adhere to ethical principlesof the business, defined by the Company Charter and relevant laws.12 ANNUAL REPORT 06 PRINCIPLES OF THE CORPORATE MANAGEMENT