CORPORATE GOVERNANCE
Under the Corporate Governance Rules of the NYSE, currently in effect, the Company is
required to disclose any significant ways in which its corporate governance practices differ from those
required to be followed by domestic companies under NYSE listing standard. These significant
differences are summarized below
Our corporate governance practices are governed by Luxembourg Companies Law and our
articles of association. As a Luxembourg company listed on the NYSE, we are not required to comply
with all of the corporate governance listing standards of the NYSE. We, however, believe that our
corporate governance practices meet or exceed, in all material respects, the corporate governance
standards that are generally required for controlled companies by the NYSE but the following is a
summary of the significant ways that our corporate governance practices differ from the corporate
governance standards required for controlled companies by the NYSE (provided that our corporate
governance practices may differ in non-material ways from the standards required by the NYSE that
are not detailed here):
Non-management Directors’ Meetings
Under NYSE standards, non-management directors must meet at regularly scheduled
executive sessions without management present and, if such group includes directors who are not
independent, a meeting should be scheduled once per year including only independent directors. Neither
Luxembourg law nor our articles of association require the holding of such meetings and we do not
have a set policy for these meetings. Our articles of association provide, however, that the board shall
meet as often as required by the interests of the Company and at least four times a year, upon notice by
the chairperson or by any two directors.
In addition, NYSE-listed companies are required to provide a method for interested parties to
communicate directly with the non-management directors as a group. While we do not have such a
method, we have set up a compliance line for investors and other interested parties to communicate
their concerns to members of our audit committee (who, as already stated, are independent).
Audit Committee
Under NYSE standards, listed U.S. companies are required to have an audit committee
composed of independent directors that satisfies the requirements of Rule 10A-3 promulgated under
the Exchange Act. Our articles of association currently require us to have an audit committee composed
of three members, of whom at least two must be independent (as defined in our articles of association)
and our audit committee complies with such requirements. In accordance with NYSE standards, we
have an audit committee entirely composed of independent directors.
Under NYSE standards, all audit committee members of listed U.S. companies are required to
be financially literate or must acquire such financial knowledge within a reasonable period and at least
one of its members shall have experience in accounting or financial administration. In addition, if a
member of the audit committee is simultaneously a member of the audit committee of more than three
public companies, and the listed company does not limit the number of audit committees on which its
members may serve, then in each case the board must determine whether the simultaneous service
would prevent such member from effectively serving on the listed company’s audit committee and shall
publicly disclose its decision. No comparable provisions on audit committee membership exist under
Luxembourg law or our articles of association.
Standards for Evaluating Director Independence
Under NYSE standards, the board is required, on a case-by-case basis, to express an opinion
with regard to the independence or lack of independence of each individual director. Neither
Luxembourg law nor our articles of association require the board to express such an opinion. In
addition, the definition of “independent” under the rules of the NYSE differs in some non-material
respects from the definition contained in our articles of association.
Audit Committee Responsibilities
Pursuant to our articles of association, the audit committee shall assist the Board of Directors
in fulfilling its oversight responsibilities relating to the integrity of the Company’s financial
statements,
including periodically reporting to the Board of Directors on its activity and the adequacy of the
Company’s system of internal controls over financial reporting. As per the audit committee charter, as
amended, the audit committee shall make recommendations for the appointment, compensation,
retention and oversight of, and consider the independence of, the Company’s external auditors. The
audit committee is required to review material transactions (as defined by the articles of association)
between us or our subsidiaries with related parties and also perform the other duties entrusted to it by
the board.
The NYSE requires certain matters to be set forth in the audit committee charter of U.S. listed
companies. Our audit committee charter provides for many of the responsibilities that are expected
from such bodies under the NYSE standard; however, due to our equity structure and holding company
nature, the charter does not contain all such responsibilities, including provisions related to setting
hiring policies for employees or former employees of independent auditors, discussion of risk
assessment and risk management policies, and an annual performance evaluation of the audit
committee.
Shareholder Voting on Equity Compensation Plans
Under NYSE standards, shareholders must be given the opportunity to vote on equitycompensation
plans and material revisions thereto, except for employment inducement awards, certain
grants, plans and amendments in the context of mergers and acquisitions, and certain specific types of
plans. We do not currently offer equity- based compensation to our directors, executive officers or
employees, and therefore do not have a policy on this matter.
NYSE-listed companies must adopt and disclose corporate governance guidelines. Neither
Luxembourg law nor our articles of association require the adoption or disclosure of corporate
governance guidelines. Our board of directors follows corporate governance guidelines consistent with
our equity structure and holding company nature, but we have not codified them and therefore do not
disclose them on our website.
Code of Business Conduct and Ethics
Under NYSE standards, listed companies must adopt and disclose a code of business conduct
and ethics for directors, officers and employees, and promptly disclose any waivers of the code for
directors or executive officers. Neither Luxembourg law nor our articles of association require the
adoption or disclosure of such a code of conduct. We have adopted a code of conduct that applies to all
directors, officers and employees, which is posted on our website and complies with the NYSE’s
requirements, except that it does not require the disclosure of waivers of the code for directors and
officers. In addition, we have adopted a supplementary code of ethics for senior financial officers
which
is also posted on our website.
Chief Executive Officer Certification
A chief executive officer of a U.S. company listed on the NYSE must annually certify that he
or she is not aware of any violation by the company of NYSE corporate governance standards. In
accordance with NYSE rules applicable to foreign private issuers, our chief executive officer is not
required to provide the NYSE with this annual compliance certification. However, in accordance with
NYSE rules applicable to all listed companies, our chief executive officer must promptly notify the
NYSE in writing after any of our executive officers becomes aware of any noncompliance with any
applicable provision of the NYSE’s corporate governance standards. In addition, we must submit an
executed written affirmation annually and an interim written affirmation each time a change occurs to
the board or the audit committee.