Responsible and transparent governance

The company’s operations are built on high governance standards that align with the guidelines for state-owned enterprises and international best practice, ensuring effective decision-making, a clear system of accountability, sustainable financial returns for shareholders, and strong public trust.

Decisions are made by the General Meeting of Shareholders, the Supervisory Council, the Board, and the Chief Executive Officer. To ensure the effective execution of the Supervisory Council’s functions and responsibilities, KN Energies establishes dedicated committees.

Together with the Chair, the Company’s Board consists of 5 members elected and dismissed by the Supervisory Council for a 4-year term, of whom no fewer than 3 must be independent. For the purpose of selecting Board members, the Supervisory Council may establish a specialised selection committee. The formation, term, working procedures, and decision-making of the Board are regulated by Section VI of the Company’s Articles of Association.

A person is considered independent if they have no business, family, partnership, or comparable ties with the Company, its controlling shareholder, or members of its governing bodies, and if for at least one year prior to their appointment they had no business relationship with the Company — neither directly nor as a shareholder or manager of an entity engaged in such a relationship. They must also meet the criteria set out in the Law on Companies of the Republic of Lithuania, Government Resolution No. 631 of 17 June 2015, and the Corporate Governance Code for the companies listed on AB Nasdaq Vilnius.