Jamaica Corporate Governance Code 2021

CORPORATE CORPORATE GOVERNANCE GOVERNANCE CODE CODE

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CONTENTS

CORPORATE GOVERNANCE CODE

06 11

FOREWORD

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APPROACH

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THE CODE ON CORPORATE GOVERNANCE - BEST PRACTICE

DEFINITIONS

PRINCIPLE 1- MANAGEMENT AND OVERSIGHT THE GOVERNING BODY Main Principle 21 Supporting Principle 21 Guiding Principles 22 CHAIRMAN, CHIEF EXECUTIVE OFFICER, SECRETARY Main Principle 24 Supporting Principles 24 Guiding Principles 24 NON-EXECUTIVE GOVERNING BODY MEMBERS Main Principle 25 Supporting Principle 25 Guiding Principles 25

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PRINCIPLE 2 - GOVERNING BODY EFFECTIVENESS OPERATION OF THE GOVERNING BODY Main Principle 27 Supporting Principle 27 Guiding Principles 27 APPOINTMENTS TO THE GOVERNING BODY Main Principle 28 Supporting Principle 28 Guiding Principles 29 COMMITMENT TO SERVE ON GOVERNING BODIES Main Principle 30 Guiding Principles 30

CONTENTS

CORPORATE GOVERNANCE CODE

INFORMATION AND PERSONAL DEVELOPMENT Main Principle 30 Supporting Principle 30 Guiding Principles 31 PERFORMANCE EVALUATION Main Principle 31 Supporting Principles 31 Guiding Principles 32 RE-ELECTION Main Principle 32 Supporting Principle 32

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PRINCIPLE 3 - REMUNERATION THE LEVEL AND COMPONENTS OF REMUNERATION Main Principle 34 Supporting Principle 34 Guiding Principles 34 PROCEDURE Main Principle Supporting Principles Guiding Principles

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PRINCIPLE 4 – ACCOUNTABILITY, AUDIT, RISK MANAGEMENT FINANCIAL REPORTING Main Principle Supporting Principle Guiding Principles

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AUDIT AND AUDITORS Main Principle Supporting Principles

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RISK MANAGEMENT AND INTERNAL CONTROL Main Principle 40 Supporting Principles 40 Guiding Principles 41 PRINCIPLE 5- RELATIONS WITH SHAREHOLDERS AND OTHER STAKEHOLDERS RELATIONS WITH STAKEHOLDERS Main Principle 43 Supporting Principle 43

CONTENTS

CORPORATE GOVERNANCE CODE

DIALOGUE WITH STAKEHOLDERS & SUBSIDIARY GOVERNANCE Main Principle 43 Supporting Principle 44 Guiding Principles 44 CONSTRUCTIVE USE OF THE GENERAL MEETING Main Principle 44 Guiding Principles 45 RELATIONS WITHIN A GROUP OF COMPANIES -SUBSIDIARY GOVERNANCE Main Principle 44 Supporting Principle 45 EMPLOYEE RELATIONS 46 HEALTH, SAFETY AND 47 DATA PROTECTION WORKPLACE RELATIONS 47

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PRINCIPLE 6- TIMELY AND BALANCED DISCLOSURES Main Principle 48 Supporting Principle 48 Guiding Principles 49

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PRINCIPLE 7- CORPORATE SUSTAINABILITY AND ETHICS

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CORPORATE SOCIAL RESPONSIBILITY Main Principle 50 Supporting Principle 50 Guiding Principles 50 ENVIRONMENTAL CONSIDERATIONS Main Principle 50 Supporting Principles 51 Guiding Principles 51 DECISION-MAKING Main Principle 51 Supporting Principles 51 Guiding Principles 52 CODES OF CONDUCT/ETHICS

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APPENDIX 1 – CORPORATE GOVERNANCE & MSMES GUIDANCE ON USE OF THE CODE FOR MSMES RECORD KEEPING

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APPENDIX 2 – NON -PROFIT ORGANIZATIONS BACKGROUND MANAGEMENT AND OVERSIGHT GOVERNING BODY EFFECTIVENESS REMUNERATION ACCOUNTABILITY & AUDIT RELATIONS WITH STAKEHOLDERS TIMELY AND BALANCED DISCLOSURES CORPORATE SUSTAINABILITY AND ETHICS

55 55 55 55 56 56 56 56

APPENDIX 3 – FAMILY BUSINESS GOVERNANCE OVERVIEW FAMILY CONSTITUTION FAMILY COUNCIL FAMILY MEMBER EMPLOYMENT POLICIES SUCCESSION PLANNING NON-FAMILIAL CONNECTED ENTERPRISES REFERENCE

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CORPORATE GOVERNANCE CODE

FOREWORD FOREWORD ʹͲ ǡ ǯ ȋ ǯ Ȍ Ǥ

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CORPORATE GOVERNANCE CODE

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The 2021 Code

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CORPORATE CORPORATE GOVERNANCE GOVERNANCE CODE CODE CORPORATE CORPORATE GOVERNANCE GOVERNANCE CODE CO CORPORATE CORPORATE GOVERNANCE GOVERNANCE CODE CO

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Dz Dz

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Dz Dz ǡ ǡ dzǤ ǡ ǡ dzǤ Camille Facey Camille Facey

Dz Dz ǡ ǡ dzǤ ǡ ǡ dzǤ

Attorney-at-Law Attorney-at-Law

ChairmanChairman CoporateCoporate Governance Governance Committee Committee 8 8

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CORPORATE GOVERNANCE CODE

Camille Facey Attorney-at-Law

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MEMBERS OF THE CORPORATE GOVERNANCE COMMITTEE 9

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CORPORATE GOVERNANCE CODE

CORPORATE GOVERNANC

MEMBERS OF THE CORPORATE GOVERNANCE COMMITTEE Ǥ THE Ǥ Ǧ Ǧ MEMBERS CORPORATE GOVERNANCE GOVERNANCE COMMITTEE MEMBERSOF OF CORPORATE COMMITTEE Ǥ Ǥ ǡ Ms. Anna I. Harry Ǥ Ǧ Ǥ Ǥ Ǥ

Ms. Barbara Alexander Ǥ Ǥ Mrs. Camille Facey Ǥ ǡ Ǥ Mrs. Carolyn Bell -Wisdom Ǥ Ǧ Ǥ

Mr. David Hall Ǥ Ǧ Ǥ Ǥ Ǧ Mr. Deon Sewell Ǥ Ǥ ȋ ǯ Ȍ Mr. Donovan Wignal Ǥ Ǥ Ms. Grant Ǥ Gabrielle

Ǥ Mrs. Gail Moss-Solomon Ǥ Ǧ Ǥ Ǧ Ǥ

Mrs. Gina Phillips-Black Ǥ Ǧ Ǥ Ǧ Ms. Bogues (Dec’d) Ǥ Greta ȋ ǯ Ȍ Ǥ Mrs. Imega Breese McNab Ǥ

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Mr. Immanuel Williams Ǥ

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Mrs. Julie Thompson-James Ǥ Ǥ Ms. Kecia Taylor Ǥ Ǥ Ǧ

Ms. Keri-Gaye Brown Ǥ

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Ms. Lorna Gooden Ǥ Ǥ

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Mrs. Marlene Street -Forrest Ǥ

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Mr. Matthew Hogarth Ǥ Ǥ

Ms. Melanie Gilchrist

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Mr. Robert Hamilton Ǥ Ms. Roxanne Miller Ǥ

Ms. Shontol Harris Ǥ Ms. Simone Pearson Ǥ

Mr. Stephen Greig Ǥ Mrs. Tracy Campbell Ǥ Dr. Twila Mae Logan

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MEMBERS OF CODE REVIEW SUB COMMITTEE Mr. Deon Sewell Mr. Matthew Hogarth Ms. Shontol Harris Ms. Anna l. Harry Mrs. Julie Thompson-James Mr. Immanuel Williams (Intern)

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CORPORATE GOVERNANCE CODE

DEFINITIONS DEFINITIONS Board

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Charitable Organization or NonProfit Organization

Companies Act

Constitutive Documents

Corporate Citizenship

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Corporate Governance

Chairman

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Corporate Social Responsibility

Corporate Sustainability

Disclosure

CORPORATE GOVERNANCE CODE

ǣ ᶇ ᶇ ᶇ ᶇ ͳ

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CORPORATE GOVERNANCE CODE

Diversity

ESG

Ethics

Executive Governing Body Member

Executive Management

Family Owned Business

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Governing Body Member

Independence

Independent Non-Executive Governing Body Member

Jamaica Stock Exchange (JSE) Rules

Lead Independent Governing Body Member

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CORPORATE GOVERNANCE CODE

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ʹǤͳ Micro, Small or Medium-Sized Enterprise (MSME)6

Non-executive Governing Body Member

Organization

Risk Management

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Significant Shareholder

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Dz dz ̈́ͳͷǡͲͲͲǡͲͲͲǤͲͲ ̈́͹ͶǡͻͻͻǡͲͲͲǤͲͲǢ

Dz dz ̈́͹ͷǡͲͲͲǡͲͲͲǤͲͲ ̈́ͶʹͷǡͲͲͲǡͲͲͲǤͲͲǤ

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CORPORATE GOVERNANCE CODE

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ʹǤͳ Small Company

Stakeholders

CORPORATE GOVERNANCE CODE

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CORPORATE GOVERNANCE CODE CORPORATE GOVERNANCE CODE

APPROACH APPROACH APPROACH

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ͳͲ ʹͲͳͷ ǣ ͳͲ ʹͲͳͷ ǣ I. Ensuring the basis for an effective Corporate Governance Framework I. Dz Ensuring the basis for an effective Corporate Framework

Governance

ǡ Dz

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II. The Rights and equitable treatment of Shareholders and Key Ownership Functions II. Dz The Rights and equitable treatment of Shareholders and Key Ownership

Functions ǯ Dz

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CORPORATE GOVERNANCE CODE

Ǥ Ǥdz

III. Institutional investors, stock markets and other intermediaries Dz

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IV. The Role of Stakeholders in Corporate Governance Dz Ǧ ǡ ǡ Ǥdz V. Disclosure and Transparency Dz ǡ ǡ ǡ ǡ Ǥdz

VI.

The Responsibilities of the Governing Body Dz ǡ ǡ ǯ Ǥ

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CORPORATE GOVERNANCE CODE

THE CODE ON CORPORATE GOVERNANCE – BEST PRACTICE CODE CORPORATE GOVERNANCE – BEST PRACTICE TTHE HE CODE ON CON ORPORATE GOVERNANCE – BEST PRACTICE

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Ǥ Laws, Regulations & Rules Constitutive Documents,

Constitutive Documents, Laws, Regulations & Rules

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CORPORATE GOVERNANCE CODE

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CORPORATE GOVERNANCE CODE

PRINCIPLE 1- MANAGEMENT AND OVERSIGHT

PRINCIPLE 1- MANAGEMENT AND OVERSIGHT A. THE GOVERNING BODY

1. Main Principle ǡ Ǧ ǡ ǯ ǡ Ǥ

2. Supporting Principle

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CORPORATE GOVERNANCE CODE

3. Guiding Principles ͳȌ Ǥ ǡ ǡ ǡ ǯ

̵ Ǥ

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a. Integrity Ǥ ͳͶǢ Ǥ Ǥ ǡ ǡ

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b. Competence Ǥ ǡ ǡ ǡ ͳ͸Ǥ

c. Responsibility Ǥ ǯ Ǥ Ǥ ǯ ǡ ǡ Ǥ

d. Accountability ǡ

Ǥ

e. Transparency Ǥ

ʹͲͳ͸ǡ dz ǣ ǣȀȀ Ǥ Ǥ Ǥ Ȁǫ α ϭϰ ͳ͹Ͷ ȋͳȌȋ Ȍ ͳͷ ͳ͹Ͷ ͳ͸ ͳ͹ͶȋͳȌȋ Ȍ ͳ͹Ͷȋ͸Ȍ ϭϯ

22

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ʹʹ

ʹǤͳ

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f. Fairness ǡ ǯ ͳ͹Ǥ

͵Ȍ

ǡ ǡ Ǥ ǡ ǡ ǡ ǡ ǡ Ǥ ͵ͲΨ Ǥ ǡ ǡ ǡ Ǥ

ͶȌ Ǥ ȋ Ȍ Ǥ ǡ ǡ ǡ Ǥ

ͷȌ ǯ ǡ ȋ Ȍǡ ȋ Ȍǡ ǡ Ǥ

Ǥ

͸Ȍ Ȁ Ǥͳͺ

͹Ȍ ǣ Ǥ ȋ Ǥ Ǥ ǡ ǡ ǯ ȌǢ Ǥ Ǣ Ǥ Ǧ ͳͻǢ

ͳ͹ͶȋͶȌ ʹͲͶ Ǥ ͳͻ ͷͲΨ Ǥ ͳ͹ ͳͺ

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ʹ͵

ʹǤͳ

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Ǥ ȋ Ȁ ǡ ȌǤ

ͺȌ

Ǥ ǡ Ǥ

B. CHAIRMAN, CHIEF EXECUTIVE OFFICER, SECRETARY

1. Main Principle

Ǥ Ǥ

2. Supporting Principles

ͳȌ ǡ Ǥ ǣ Ȍ ǡ Ǣ Ȍ Ǣ Ȍ Ǧ Ȍ Ǧ Ǥ

ʹȌ ȋ ǡ Ȁ Ȍ

Ǥ

͵Ȍ Ǥ ǡ ǡ ǡ ȋ ǡ ǡ Ȍ Ǥ

3. Guiding Principles

ͳȌ Ǥ

Ǥ ǯ Ǥ

Ǥ

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ʹͲʹͳ

ʹͶ

ʹǤͳ ʹǤͳ

CORPORATE GOVERNANCE CODE

CORPORATE GOVERNANCE CODE

Ǥ Ǥ

ʹȌ ʹȌ

͸ Ǥ Ǥ

͸

ȋ͵Ȍ Ǥ ȋ͵Ȍ

Ǥ

ǡ ǡ ǡ

ǡ

ǡ

ǡ

Ǥ Ǥ

͵Ȍ Ǥ ͵Ȍ

Ǥ

Ǣ ǡ

Ǣ ǡ

ȋ Ȍ Ǥ

ȋ Ȍ Ǥ

C. NON-EXECUTIVE GOVERNING BODY MEMBERS

1. Main Principle

C. NON-EXECUTIVE GOVERNING BODY MEMBERS

ǡ Ǧ 1. Main Principle ǡ Ǥ

ǡ Ǧ ǡ Ǥ

2. Supporting Principle

Ǧ Ǥ Ǧ

Ǥ

Ǥ

ǡ ǡ ǡ

Ǥ Ǥ

2. Supporting Principle

3. ǡ ǡ Guiding Principles ǡ Ǥ ͳȌ ǡ

Ǧ 3. Guiding Principles

ͳȌ

ǡ

Ǥ

Ǧ

ȋ Ȍ

ǡ ǡ ǡ

Ǥ

Ǥ ȋ Ȍ ǡ

ʹǤͳ ʹȌ

ǡ ǡ

ǡ ǡ Ǥ Ǥ ǡ

ʹȌ

ʹͲʹͳ Ǧ

ǡ ǡ ǡ

25

ǡ Ǥ Ǥ ǡ

ʹͷ

25

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ʹͷ

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ʹǤͳ

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PRINCIPLE 2 - GOVERNING BODY EFFECTIVENESS

PRINCIPLE 2 - GOVERNING BODY EFFECTIVENESS A.

OPERATION OF THE GOVERNING BODY

1. Main Principle ȋ Ȍ Ǥ ǡ Ǥ ǡ ǡ Ǥ ǡ Ǥ ǡ ǡ Ǥ

2. Supporting Principles

ͳȌ ʹͲ ǯ Ǥ Ǥ

ʹȌ Ǧ ȋ Ȍ ȋ ǡ ǡ Ǧ Ȍ ǯ Ǧ Ǥ ǡ Ǥ

ǡ Ǥ

3. Guiding Principles

ͳȌ Ǧ Ǥ

ǡ ǡ ǯ Ǥ

ǡ ǣ Ǥ ȋ Ȍ ȋ͵Ȍ Ǣ ǡ ȋ͵Ȍ ǡ ǡ ǡ ǡ Ǣ

ʹͲ

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ʹ͹

ʹǤͳ

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ǯ ǡ ǯ Ǣ Ǥ ǯ ǡ Ǣ Ǥ Ǧ Ǣ Ǥ Ǥ

ʹȌ ȋ͵Ȍ Ȁ Ȁ Ǥ

͵Ȍ Ǧ Ǥ Ǧ Ǥ ̵ ǡ ǯ ǡ Ǥ

ͶȌ ǡ ǡ Ǧ Ȁ ǯ Ȁ Ǧ Ǥ B. APPOINTMENTS TO THE GOVERNING BODY

1. Main Principle ǡ Ǥ

2. Supporting Principles

ͳȌ Ǥ Ǥ Ǥ

ǡ

ǡ Ǥ

ʹȌ Ǧ Ǥ ǡ

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ʹͺ

ʹǤͳ

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Ǥ

͵Ȍ ǣ Ǥ ̵ ǡ ǡ Ǣ Ǥ ǡ Ǣ Ǥ Ǣ Ǥ Ǥ

3. Guiding Principles

ͳȌ ȋ Ȍ ȋ Ȍ

Ǥʹͳ ǡ Ǧ Ǥ Ǧ Ǥ

Ǥ

ʹȌ

ǯ Ǥ

͵Ȍ ǡ ǡ ǡ ǡ Ǥ

ͶȌ ǡ Ǥ ǡ Ǥ Ǥ ǡ ̵ Ǥ

ǡ Ǥ

ͷȌ ǡ ǡ Ǥ

ʹͳ

ǡ Ǥ

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ʹͻ

ʹǤͳ

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C. COMMITMENT TO SERVE ON GOVERNING BODIES 1. Main Principle

Ǥ

2. Guiding Principles

ͳȌ ǯ ǡ ǡ ǡ ǡ Ǥ

ʹȌ Ǥ

ǯ Ǥ D. INFORMATION AND PERSONAL DEVELOPMENT

1. Main Principle

Ǥ

Ǥ

2. Supporting Principles

ͳȌ ǡ Ǧ Ǥ

Ǥ

ʹȌ

ǡ ǡ ǯ Ǥ Ǥ

͵Ȍ ̵ Ǥ

ͶȌ ǡ ǯ ǡ ǡ Ǧ

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͵Ͳ

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ȋ Ȍǡ Ǥ

ͷȌ ǡ Ǥ

3. Guiding Principles

ͳȌ ǡ Ǥ Ǥ

ʹȌ ȋ Ȍ ǡ Ǧ ǡ Ȁ ǡ ̵ Ǥ

͵Ȍ Ǥ

ͶȌ ȋ Ȍ ǡ ǡ ǡ Ǥ ǡ Ǥ

E. PERFORMANCE EVALUATION

1. Main Principle

ǡ Ǥ

2. Supporting Principles

ͳȌ ǡ ǡ ǡ ǡ Ǥ

ʹȌ ǡ ǡ

Ǥ

͵Ȍ

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͵ͳ

ʹǤͳ

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ȋ ȌǤ

3. Guiding Principles

ͳȌ ǡ ǡ ǡ Ǥ

ʹȌ ǡ Ǥ

͵Ȍ ǡ Ǥ

ͶȌ ȋ Ȍǡ ǡ Ǥ ȋ͵Ȍ Ǥ

ͷȌ Ǧ ǡ ȋ Ȍǡ Ǥ

͸Ȍ Ǧ Ǥ F. RE-ELECTION

1. Main Principle Ǧ ǡ ǯ Ǥ Ǥ

2. Supporting Principles

ͳȌ Ǧ

Ǧ Ǥ

ʹȌ ǡ ȋ Ǥ Ǥ Ǧ Ȍ Ǧ

Ǥ Ǧ ȋͻȌ Ǣ ȋ Ǥ Ǥ ȋ͵Ȍ Ǧ Ȍǡ Ǧ Ǥ ȋͻȌ

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͵ʹ

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Ǧ ̵ Ǥ ǡ ǡ Ǥ ǡ ǡ ǡ Ȁ ǡ Ǧ Ǧ Ǥ

33

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͵͵

ʹǤͳ

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PRINCIPLE 3 - REMUNERATION

PRINCIPLE 3 - REMUNERATION A. THE LEVEL AND COMPONENTS OF REMUNERATION

1. Main Principle ȋ Ȍ Ǧ Ǥ Ǧ ǡ ǯ ǡ ǡ Ǥ

2. Supporting Principle

ǡ ǡ

ǡ ǡ Ǥ

3. Guiding Principles

ͳȌ Ǧ ǡ Ǥ

ʹȌ ǡ

ǡ Ǥʹʹ

͵Ȍ ǡ

ȋ Ȍ ǡ Ǥ Ǥ

B. PROCEDURE

1. Main Principle

ȋ Ȍ Ǥ Ǥ

Ǥ ͳ͵Ǥ

ϮϮ

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2. Supporting Principle

Ǥ

Ǥ

3. Guiding Principles

ͳȌ ǡ ȋ͵Ȍǡ Ǧ Ǥ Ǥ Ǥ ǯ Ǥ

ʹȌ ǡ Ǥ Ǥ

Ǥ

͵Ȍ ǡ Ǧ Ǥ Ǥ

ͶȌ ǯ ǡ ǡ ʹ͵ǣ Ǥ Ȃ Ǣ Ǥ Ȃ Ǣ Ǥ Ȃ

Ǣ Ǥ Ȃ ǡ Ǧ Ǥ Ǣ Ǥ Ȃ ǡ Ǥ

ʹͲͳ͹Ǥ Ǥ ǣȀȀ Ǥ Ǥ Ǥ Ȁ Ȁͺͺ ͺ ͶͷǦͷͲ ǦͶͺͶͳǦͻͷ ͲǦ ʹ Ͷ ͶͺͲ͸ͻ ʹȀʹͲͳͺǦ Ǧ Ǧ Ǧ Ǧ Ǥ Ϯϯ

35

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͵ͷ

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ͷȌ ȋ Ȍ ǡ ʹͶǣ Ǥ ǡ Ǣ Ǥ Ǣ Ǥ ǡ ǡ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǥ

ʹͶ

Ǥ ʹͳǤ

36

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͵͸

ʹǤͳ

CORPORATE GOVERNANCE CODE

PPRINCIPLE RINCIPLE 4 – ACCOUNTABILITY, AUDIT, RISK MANAGEMENT 4 – ACCOUNTABILITY, AUDIT, RISK MANAGEMENT A. FINANCIAL REPORTING 1. Main Principle ̵ ǡ ǡ ǡ Ǥ

2. Supporting Principles

ͳȌ ̵

ǡ ǡ Ǥ

ʹȌ ǡ Ǥ

3. Guiding Principles

ͳȌ ȋ Ȍ

Ǥ

ʹȌ ȋ Ȍ ȋ Ȍ ʹͷǤ

͵Ȍ ǡ Ȁ Ǥ

ʹͲʹͳ

ʹ͸ B. AUDIT AND AUDITORS

1. Main Principle

ǯ Ǥ

ʹͷ

ͳ͵ Ƭ

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2. Guiding Principles ͳȌ ǡ ǡ ǡ ǡ Ǧ ʹ͸Ǥ

ǡ ǡ ǡ ȋ͵Ȍǡ ǡ ȋͳȌ Ǥ

ʹȌ ȋ Ȍ ǣ Ǥ ǡ ̵ Ǣ Ǥ ̵ Ǣ Ǥ ǡ ǡ ǡ Ǧ ȋ Ȍǡ Ǣ Ǥ ̵ ǡ Ǣ Ǥ Ǧ ǡ Ǧ Ǣ Ǥ ǡ

Ǣ Ǥ Ǥ

͵Ȍ ǯ Ǥ

ͶȌ Ǥ

ͷȌ ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǧ Ǧ Ǣ Ǥ Ǣ

ʹ͸

Ǥ

38

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͵ͺ

ʹǤͳ

CORPORATE GOVERNANCE CODE

Ǥ ǡ ǯ ǡ Ǣ Ǥ ǯ ǡ ǡ ǡ Ǣ Ǥ

Ǣ Ǥ Ǣ Ǥ ǯ ǡ ǡ Ǣ Ǥ Ǧ Ǧ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǥ

͸Ȍ ǡ ǡ ǯ Ǥ

͹Ȍ Ǥ ǡ ǡ ȋ ȌǤ

ͺȌ ȋ Ȍ ǡ ǡ Ǥ ǣ Ǥ ǡ ǤǢ Ǥ ǡ

Ǣ Ǥ Ǧ ǡ Ǥ

39

ʹͲʹͳ

͵ͻ

ʹǤͳ

CORPORATE GOVERNANCE CODE

C. RISK MANAGEMENT AND INTERNAL CONTROL Main Principle

Ǥ ʹ͹

Supporting Principles

ͳȌ ȋ Ȍ ǡ ǡ ǡ ǡ Ǥ Ǥ

ʹȌ ǯ ǡ ǡ Ǥ

ǡ Ǥ

͵Ȍ ǯ ǡ ǡ ǡ ȋ ȌǤ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ

ͶȌ ǯ Ǥ

ͷȌ ǡ ǡ ǡ Ǥ

͸Ȍ ǡ ǡ ǡ

Ǥ ǡ ǡ

ǡ Ǥ

ʹ͹

ͳ͵ Ƭ

40

ʹͲʹͳ

ͶͲ

ʹǤͳ

CORPORATE GOVERNANCE CODE

͹Ȍ ǡ

ǡ Ǧ Ǥ

ͺȌ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ

3. Guiding Principles

ͳȌ ǡ Ǣ ǣ Ǥ ȋ ȌǢ Ǥ Ǣ

Ǥ Ǣ

Ǥ Ǣ Ǥ Ǥ

Ǥ

Ǣ

Ǣ

Ǣ

Ǥ Ǣ

Ǥ Ǣ Ǥ Ǣ

Ǥ Ǣ Ǥ Ǥ

Ǥ

ʹȌ ǯ ǯ Ǥ

͵Ȍ Ǥ ʹͺǣ

Ǥ ǡ Ǣ Ǥ Ǣ Ǥ ǡ Ǧͳͻ Ǣ Ǥ Ǣ Ǥ

ʹͺ ǣȀȀ Ǥ Ǥ

Ȁ Ȁ ȀʹͲʹͲǦ Ǧ Ǧ

41

ʹͲʹͳ

Ͷͳ

ʹǤͳ

CORPORATE GOVERNANCE CODE

Ǥ

ͶȌ ǡ ǡ ǡ ǣ Ǥ Ǣ Ǥ ȋ ǡ ǡ ȌǢ Ǥ ǯ ǡ Ǣ Ǥ ǡ ǡ ǡ Ǥ

ͷȌ ǡ ǡ Ǥ ǡ ǡ ǡ

ǡ Ǥ

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Ͷʹ

ʹǤͳ

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PPRINCIPLE RINCIPLE 5-5RELATIONS WITH SHAREHOLDERS AND OTHER TAKEHOLDERS RELATIONS WITH SHAREHOLDERS ANDSOTHER STAKEHOLDERS A. RELATIONS WITH STAKEHOLDERS 1. Main Principle ǡ Ǧ ǡ ʹͻǤ

2. Supporting Principles

ͳȌ

Ǥ

ʹȌ Ǥ

͵Ȍ ǡ ͵Ͳǣ

Ǥ Ǣ Ǥ ǡ ǡ Ǣ Ǥ ǯ Ǧ Ǣ Ǥ ǡ Ǣ Ǥ ǡ Ǥ

Main Principle

B. DIALOGUE WITH STAKEHOLDERS & SUBSIDIARY GOVERNANCE

Ǥ ǡ ͵ͳ Ǥ

Ǥͳ͵ Ǥͳ͵

Ϯϵ ϯϬ

͵ͳ

Ǥ

43

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Ͷ͵

ʹǤͳ

CORPORATE GOVERNANCE CODE

Supporting Principles ͳȌ

ǡ ȋ ȋ Ȍ ȋ Ȍ

Ǥ

ʹȌ Ǥ

Guiding Principles

ͳȌ Ǥ

ʹȌ ǡ Ǧ ǡ ǡ Ǧ Ǧ ǡ ̵ ̵ Ǥ

Main Principle

C. CONSTRUCTIVE USE OF THE GENERAL MEETING

Ǥ

Guiding Principle

ͳȌ

ǡ ǡ Ǥ

D. RELATIONS WITHIN A GROUP OF COMPANIES -SUBSIDIARY GOVERNANCE ȋ Ȍ

Main Principle

ǡ ǡ

͵ʹǤ

͵ʹ

Ǥͳ͵

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Supporting Principles ͳȌ ǯ ǡ Ǥ ǡ ǡ ǣ Ǥ Ǣ Ǥ ǡ ǯ ȋ ǡ ǡ ǡ Ȍ Ǣ Ǥ ǡ ǡ ǡ ǡ Ǣ Ǥ ǡ ǡ Ǣ Ǥ ǯ

Ǥ

ʹȌ ȋ Dz dzȌ ȋ Dz ȋ ȌdzȌ Ǥ

Ǥ ǡ ǣ Ǥ ǡ Ǣ Ǥ Ǣ Ǥ Ǥ

ȋ Ǥ Ǥ Ȍ Ǥ

͵Ȍ ǣ Ǥ Ǣ Ǥ

Ǥ

ͶȌ ǯ ǯ ǯ Ǥ

45

ʹͲʹͳ

Ͷͷ

ʹǤͳ

CORPORATE GOVERNANCE CODE

ͷȌ ǡ

Ǥ ǯ ͵͵Ǥ

͸Ȍ

ǡ ͵Ͷǣ

Ǥ Ǣ Ǥ ǡ ǡ ǡ Ǧ Ǣ Ǥ Ǣ Ǥ

Ǣ Ǥ

Ǥ

ǡ Ǥ E. EMPLOYEE RELATIONS

ǡ Ǥ ǡ Ǥ Ǥ ͵ͷǢ ͵͸Ǣ ȋ Ȍ ͵͹Ǣ ȋ Ȍ ͵ͺ Ǥ ǡ ǡ ǡ ȋ Ȍ ǡ Ǥ Ǥ

Ǥ

͵͵

Ǥͳ͵ Ǥͳ͵ ͵ͷ ǡ ͳͻ͹ͷǤ ͵͸ ͳͻ͹͸Ǥ ͵͹ ȋ Ȍ ǡ ʹͲͳͶǤ ͵ͺ ȋ Ȍ ǡ ͳͻ͹ͶǤ ͵Ͷ

46

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F. HEALTH, SAFETY AND DATA PROTECTION

͵ͻ Ȁ ͶͲ Ǥ Ǥ ǡ

Ǥ ǡ ǡ Ǥ G. WORKPLACE RELATIONS

Ǥ ʹͲ ͶͳǤ

ͶʹǤ

Ǥ ʹʹ Ͷ͵Ǥ

Ǥ

ǡ ȋ Ȍ ǡ ǡ Ǥ Ǥ

͵ͻ

ȋ Ȍ Ͷͳ ͳͻ͹͸ǡ ʹͲǤ Ͷʹ ǡ ʹͲͳͳǤ Ͷ͵ ͳͻ͹͸ǡ ʹʹ͘ ͶͲ

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PRINCIPLE 6- T AND B ALANCED DISCLOSURES PRINCIPLE 6-IMELY TIMELY AND BALANCED DISCLOSURES Main Principle

ǯ ǡ ǡ Ǧ Ǧ Ǥ

Supporting Principles

ͳȌ ǡ ǣ

Ǥ Ǧ ǡ ǡ Ǣ Ǥ Ǥ

ʹȌ ̶ ̶ Ǥ

Guiding Principles

ͳȌ

Ǥ

ʹȌ ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǥ

͵Ȍ Ǥ ̵ Ǥ

ͶȌ ǡ ǯ ǡ ǣ Ǥ Ǣ Ǥ ǡ ǯ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǣ

48

ʹͲʹͳ

Ͷͺ

ʹǤͳ

CORPORATE GOVERNANCE CODE

Ǥ Ǥ

49

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Ͷͻ

ʹǤͳ

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PRINCIPLE 7- 7CORPORATE SUSTAINABILITY / ETHICS/ESG PRINCIPLE CORPORATE SUSTAINABILITY AND ETHICS A. CORPORATE SOCIAL RESPONSIBILITY Main Principle ǡ ǡ Ǧ ǡ Ǥ ǡ Ǥ

Supporting Principle

ǡ ǡ ǡ Ǥ ǯ

Ǧ Ǥ

Ǥ

Guiding Principles

ͳȌ ǣ Ǥ ǯ Ǣ Ǥ ǡ Ǧ ǡ Ǣ Ǥ ǯ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǣ Ǥ Ǥ

B. ENVIRONMENTAL CONSIDERATIONS

Main Principle

ǡ ǯ Ǥ ǡ ǡ ǡ

50

ʹͲʹͳ

ͷͲ

ʹǤͳ

CORPORATE GOVERNANCE CODE

ǡ Ǥ

Supporting Principles

ͳȌ ǡ ǡ Ǧ ǡ Ǧ Ǥ

ʹȌ ǡ

ǡ ǡ Ǥ

Guiding Principles

ͳȌ ǡ ǡ Ǥ

ʹȌ ǡ ǡ ǡ Ǣ Ǣ ǯ ǡ ǡ ǡ ǡ Ǥ

͵Ȍ

Ǥ

ͶȌ ȋ Ȍ

Ǥ

ͷȌ Ǥ

C. DECISION-MAKING

Main Principle Ǧ Ǥ

Supporting Principles

ͳȌ ǯ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ

51

ʹͲʹͳ

ͷͳ

ʹǤͳ

CORPORATE GOVERNANCE CODE

ʹȌ ̵ ǣ

Ǥ Ǣ Ǥ ǡ ȋ Ȍ ǯ Ǣ Ǥ ǡ ǡ ǡ ǡ Ǣ Ǥ Ǥ ǯ Ǥ

Ǥ

Ǥ ǡ Ǥ ǯ Ǥ Ǥ

Guiding Principles

ͳȌ ǣ Ǥ Ǣ Ǥ ǡ ǡ ǣ

Ǥ ̵ Ǣ Ǥ Ǣ Ǥ

ǯ ȋ

ǯ ǡ ǡ ǡ ǡ Ǧ ǡ ǡ ǡ

ȌǢ

52

ʹͲʹͳ

ͷʹ

ʹǤͳ

CORPORATE GOVERNANCE CODE

Ǥ Ǧ Ǥ

ǡ

Ǥ Ǥ

ʹȌ ǡ Ǧ ǡ Ǥ D. CODES OF CONDUCT /ETHICS

Ȁ ȋ Ȍ Ǥ ǯ ǡ ǡ Ǥ

ȋ Ȍ ǯ ǡ ǡ Ǥ

ǡ ǡ ǣ Ǧ

x ǡ x ǡ x ǡ x ǡ x ǡ x ǡ x ǡ x ǡ x ǡ x x Ǥ

53

ʹͲʹͳ

ͷ͵

ʹǤͳ

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APPENDIX 1 –1 C–ORPORATE GOVERNANCE & MSMES & MSMES APPENDIX CORPORATE GOVERNANCE A. GUIDANCE ON USE OF THE CODE FOR MSMES

Ǥ

ǡ Ǥ Ǥ ǡ ǡ Ǥ Dz dz Ǥ

Ǥ ǡ Ǥ Ǥ

ǡ Ǥ ǡ

Ȁ Ǥ ǡ Ǥ B. RECORD KEEPING

We encourage MSMEs to document and maintain accurate and complete records and policies of the business (record keeping). ǡ

Ǥ Ǥ Ǥ ǡ Ǥ ǡ ȋ͹Ȍ ǡ Ǥ

54

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APPENDIX 2 –2 N -PROFIT ORGANIZATIONS APPENDIX –ON NON -PROFIT ORGANIZATIONS BACKGROUND Ǧ ȋ Ȍ

Ǥ

A. MANAGEMENT AND OVERSIGHT ͷ Ǧ ǡ Ǧ Ǥ ǡ ǡ ǡ ǡ Ǥ

ͳǤͶͶ

B. GOVERNING BODY EFFECTIVENESS45 ͸ Ǧ ǡ ǡ Ǥ

ǡ ǡ ǡ ǡ ǡ Ǥ

ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ

ǡ Ǥ

C. REMUNERATION ͹ Ǧ Ǧ Ǥ Ǧ ǡ ǯ Ǥ

Ǧ

Ǥ

ͶͶ Ͷͷ

Ǥͳ͵ Ǥͳ͵

55

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ͷͷ

ʹǤͳ

CORPORATE GOVERNANCE CODE

Ǥ

D. ACCOUNTABILITY & AUDIT ͺǦ ̹ Ǥ E. RELATIONS WITH STAKEHOLDERS ͻǦ ǡ Ǧ ǡ Ǥ ǡ Ǥ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ ǡ Ǧ Ǥ

F. TIMELY AND BALANCED DISCLOSURES ͼǦ

ǯ ǡ ǡ Ǧ Ǧ Ǥ

ǡ ǡ Ǥ ǡ ǡ ǡ Ǥ ǡ ǡ Ǥ

G. CORPORATE SUSTAINABILITY AND ETHICS ͽǦ Ǧ ǡ Ǥ ǡ Ǥ

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CORPORATE GOVERNANCE CODE

APPENDIX 3 –3F–AMILY BUSINESS GOVERNANCE APPENDIX FAMILY BUSINESS GOVERNANCE A. OVERVIEW ȋ Ȍ Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ Ǥ ǯ ǡ ǯ Ǥ

Ǧ Ǧ ǡ Ǧ Ǧ Ǥ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ Ǥ Ǥ Ǥ

B. FAMILY CONSTITUTION ǯ ǯ Ǥ ǣ

Ǥ Ǧ Ǥ

Ǥ ǡ Ǥ

C. FAMILY COUNCIL

Ǥ Dz dz Ǥ

Ǯ ǯ Ǥ ǡ ǡ ǡ ǡ Ǥ

Ǥ Ǥ Ǥ

D. FAMILY MEMBER EMPLOYMENT POLICIES Ǥ Ǥ ǡ Ǥ Ǧ Ǥ

57

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CORPORATE GOVERNANCE CODE

Ǥ ǡ

ǤͶ͸

E. SUCCESSION PLANNING Ǧ ǯ ǡ ǡ ǡ Ǥ Ǥ

F. NON-FAMILIAL CONNECTED ENTERPRISES ǡ Ǧ Ǥ ǡ Ǥ

Ǥ

Ͷ͸

Ǥ ǣ ǣȀȀ Ǥ Ǥ Ȁ Ȁ Ȁ Ȁ ̴ ̴ Ȁ ̴ ̴ ̴ Ȁ Ϊ Ȁ Ȁ ̴ Ϊ Ϊ Ϊ Ȁ Ϊ Ϊ Ϊ Ϊ

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CORPORATE GOVERNANCE CODE

REFERENCES REFERENCES Ǣ ǡ ǡ Ǣ ʹͲͳͻǤ

ǡ ȋͳ ʹͲͳͻȌǤ Ǧ Ǥ Ǥ ͻ͹ͺǦͺͳǦ͵ͳͶǦʹͺͶ͹ǦͶǤ

ǣȀȀ Ǥ Ǥ Ȁ Ȁ Ȁ Ǧ

ǣȀȀ Ǥ Ǥ Ȁ Ȁ Ȁ Ȁ Ȁ Ȁ ̴ ͳͳ̴ Ǥ

ǡ ʹͲʹͳǤ

ǣȀȀ Ǥ Ȁ Ȁ Ȁ Ȁ Ǧ Ȁ

ǡ Ǧ Ǧ Ǧ ȋ ʹͲͳ͵Ȍ ǣȀȀ Ǥ Ȁ Ǧ Ȁ ȀʹͲͳ͵ȀͳʹȀͳ͵ǦͳʹǦͲͺ

ʹͲȀ ǡ ȋ ǣ ǡ ʹͲͳͷȌǤ ǣ ǣȀȀ Ǥ Ǧ Ǥ Ȁ

ǡ ʹͲͲͶ

ǡ ʹͲͳͶ

ǡ ʹͲͲͳ

ǡ ͳͻͻ͵

ʹͲͳ͸ǡ dz ǣ ǣȀȀ Ǥ Ǥ Ǥ Ȁǫ α

ʹͲͳ͹Ǥ Ǥ ǣȀȀ Ǥ Ǥ Ǥ Ȁ Ȁͺͺ ͺ ͶͷǦͷͲ ǦͶͺͶͳǦͻͷ ͲǦ ʹ Ͷ ͶͺͲ͸ͻ ʹȀʹͲͳͺǦ Ǧ Ǧ Ǧ Ǧ Ǥ

ǣȀȀ Ǥ Ǥ Ȁ Ȁ ȀʹͲʹͲǦ Ǧ Ǧ

ǡ ͳͻ͹ͷǤ

ǡ ͳͻ͹͸Ǥ

ȋ Ȍ ǡ ʹͲͳͶǤ

ȋ Ȍ ǡ ͳͻ͹ͶǤ

ǡ ͳͻͶ͵

ȋ Ȍ

ǡ ʹͲͳͳǤ

ʹͲʹͳ

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Ǥ ǣ ǣȀȀ Ǥ Ǥ Ȁ Ȁ Ȁ Ȁ ̴ ̴ Ȁ ̴ ̴ ̴ Ȁ Ϊ Ȁ Ȁ ̴ Ϊ Ϊ Ϊ Ȁ Ϊ Ϊ Ϊ Ϊ

We acknowledge the kind support of the IDB Invest

This publication is dedicated to the memory of

Miss Greta Bogues, JP 60

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