PZU's shareholders meeting may prove to be stormy

The two parties are currently in dispute and are in arbitration proceedings in a London court. The first bone of contention will be proposed changes to PZU's structure backed by Eureko. The proposed organizational changes include the creation of a holding and, it is said, will increase the group's profits by as much as zl.500 million annually. However, the State Treasury is not much interested in the concepts. It is similar with the motivation system for senior management where Eureko wants to give special premiums or options for shares to key managers while the State Treasury opposes it. The subject which raises the least controversy is the division of the record 2005 net profit. The PZU management board recommended to allocate 50% of the zl.2.69 billion profit for dividends and Deputy Treasury Minister Pawel Szalamacha yesterday confirmed that the Treasury would support the board's proposal. (Puls Biznesu, pp. 1, 8-9) E.B.