The company evaluates and monitors transactions to be concluded between the company and its related parties to ensure that any conflicts of interest are duly taken into account in the company's decision-making.
The company has identified its related parties and it is regularly engaged in transactions with some of these parties. These transactions relate to the company’s normal business operations and shall be in line with the purpose of the company and executed on market or market equivalent terms and practices generally observed and accepted within the industry in question (for example so called Mankala companies in energy industry).
The company’s Board of Directors has defined and approved principles for monitoring and assessment of related party transactions. These principles are documented in the company’s approval policy. The Audit Committee monitors and assesses how agreements and other legal acts between the company and its related parties meet the requirements of ordinary course of business and market terms. The Audit Committee also reviews any questions of potential conflicts of interest in contemplated transactions with the company’s related parties and makes recommendations to the Board for appropriate actions regarding the contemplated transactions. If the contemplated transaction should deviate from the company’s normal business operations or would not be executed on market or market equivalent terms, the transaction shall be either cancelled or submitted for the Board of Directors’ approval.
The company’s Finance and Control and Compliance functions monitor related party transactions as a part of the company’s normal reporting and control procedures.
Information on material transactions concluded between the company and its related parties is available in the Annual Report, in the notes to the company’s consolidated financial statements. When required under the applicable laws and regulations, material transactions conducted with related parties are also published via stock exchange release.
