Ignitis grupė
Notification on material event

Governance of AB “Ignitis grupė” subsidiaries is optimised

The Supervisory Board and the Management Board of AB “Ignitis grupė” (hereinafter – the Group) have adopted decisions to replace a two-tier management model applicable in the Group’s main subsidiaries AB “Energijos skirstymo operatorius”, AB “Ignitis gamyba” and UAB “Ignitis” (hereinafter – the Subsidiaries) with a one-tier management model, i.e. to remove the Executive Boards made up of employees and instead to form Boards with a supervisory function that will be made up of at least 1/3 of independent members, civil servants and shareholder representatives. These Boards will have a duty to perform supervisory functions for the above-mentioned companies and therefore the Supervisory Boards currently operating in the Subsidiaries will be removed. UAB “Ignitis renewables” already applies a one-tier governance model and therefore it will not undergo any change.

This decision was adopted in accordance with the Group’s Corporate Governance Guidelines approved by the Ministry of Finance of the Republic of Lithuania, following an assessment of the external and internal business environment, an evaluation of the activities and structure of these companies and in order to make sure that the management and supervisory bodies of the Subsidiaries are optimal and ensure the implementation of the interests of the Group as the shareholder and those of other stakeholders as well as are in line with international and national best practices in corporate governance.

A one-tier governance model in the Subsidiaries will ensure simpler but at the same time effective governance which continues to meet the highest standards of governance, speedy decision-making, fast communication, and active involvement of independent members. The change will further ensure the Group’s transparency and openness, timely and accurate disclosure of information about the Group and its Subsidiaries, and the accountability of the management and supervisory bodies.

Given the different expiry dates of the terms of office of the Subsidiaries’ collegial bodies, the change in the governance model from a two-tier to a one-tier governance model will take place in two stages. In the first stage, the governance model of AB “Energijos skirstymo operatorius” and AB “Ignitis gamyba” is planned to be changed until the end of this year while the governance model of UAB “Ignitis” will be changed in the second stage until Q2 2023.

The governance model of the parent company AB “Ignitis grupė” will remain unchanged.

For more information, please contact:

Artūras Ketlerius
Head of Public Relations at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 620 76076