Prokom's president continues to enjoy his privileges despite Company Code

Article 385 of the Code states that the supervisory board of a public company should comprise of at least five persons, while Prokom's board recently consists of only four. As the regulations came into life in January 2004 the company had lots of time to comply. Market watchers say the present situation is favorable for Prokom's president Ryszard Krauze, as he has the power to appoint two members of the supervisory board and thus has control over the company's decision-making process, although in reality he has only 23.6% of the votes. Widening the composition of the board would dilute Krauze's influence. However, the regulations allowed companies a transition period, not stating clearly how long it should last. That is why even legal experts' opinions on the matter are divided. Prokom's announcement on the issue declared, "Prokom's supervisory board will operate in its present composition until the end of its term. The new board will consist of five members." Companies breaching the regulation may be subject to a fine of zł.20,000. (Parkiet, p. 1) D.W.