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Fincantieri

AGM Information Apr 13, 2016

4085_egm_2016-04-13_72fa6575-2612-42ed-acd0-46a8ef765f7d.pdf

AGM Information

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ORDINARY AND EXTRAORDINARY SHAREHOLDERS MEETING 19 MAY 2016

EXPLANATORY REPORT BY THE BOARD OF DIRECTORS OF THE SECOND ITEM ON THE AGENDA FOR THE EXTRAORDINARY PART

POINT 2 OF THE AGENDA FOR THE EXTRAORDINARY PART

FINCANTIERI S.p.A.

Registered Office Via Genova No. 1, Trieste Share Capital €862,980,725.70 – fully paid up VAT No. 00629440322 Tax code and Trieste Businesses Registry No. 00397130584 Trieste Economic and Administrative Index No. 89063

* * * * *

EXTRAORDINARY PART

Explanatory Report by the Board of Directors drafted under Article 72 of Consob Resolution No. 11971 of 14 May 1999

SECOND ITEM ON THE EXTRAORDINARY AGENDA

Amendments to Articles 16, 17, 19, 20, 21, 22, 24, 27 and 31 of the By-laws. Numbering of the articles' paragraphs in the By-laws. Resolutions pertaining thereto and resulting therefrom

Dear Shareholders,

We convened the extraordinary meeting to discuss and resolve on the proposal: (i) to amend certain provisions of Articles 16, 17, 19, 20, 21, 22, 24, 27 and 31 of the By-laws, and (ii) to number the articles' paragraphs in the By-laws.

The changes to the aforementioned articles mainly concern measures which aim to introduce the office of Vice-Chairman of the Board of Directors', which is currently not provided for in the By-laws.

In line with the practice followed by other major listed companies, we believe it to be appropriate to allow the Board of Directors to appoint a Vice-Chairman, if it so desires. The Vice-Chairman will take the place of the Chairman if the latter is unavailable or absent.

The presence of a Vice-Chairman would ensure the Company's continuous operation, even where – for any reason – the Chairman cannot perform his or her duties.

Therefore, we hereby propose to amend:

  • Article 16 of the By-laws, providing that the Meeting is chaired by the Vice-Chairman in the event of the Chairman's absence of impediment;
  • Article 20 of the By-laws, to provide the Board of Directors with the power to appoint a Vice-Chairman from among its members. The Vice-Chairman will replace the Chairman in the event of absence or impediment of the latter;
  • Article 22 of the By-laws, to determine that the Board of Directors' meetings will be chaired by the Vice-Chairman in the event of absence or impediment of the Chairman;

  • Article 27 of the By-laws, to attribute the Company's legal representation and signing power to the Vice-Chairman in the event of absence or impediment of the Chairman. The Vice-Chairman's signature shall be construed as evidence vis-à-vis third parties of the chairman's absence or impediment; and finally

  • Articles 17, 21 and 24, to coordinate the By-laws with the changes to Articles 16, 20, 22 and 27.

We also propose to amend the clause in Article 19 which governs the appointment of directors through the slate voting system. More specifically, the provision we propose to amend is letter b) of subparagraph 26 of Article 19, which states: "the remaining directors will be taken from the other slates which are not in any way linked, even indirectly, with the shareholders who submitted or voted for the most voted slate".

The current wording does not allow applying the slate voting system if there are no connected minority slates, or if these slates do not contain a sufficient number of candidates to complete the Board of Directors. In this case, the general clause in letter e) of subparagraph 26 applies, according to which the meeting resolves under a legal majority on the appointment of directors that are not elected, for whatever reason, through the slate voting system.

To allow the slate voting system to also apply in the aforementioned cases, i.e., without having to submit the appointment of the missing directors to the majority vote of the meeting, we propose to amend the aforementioned letter b), so as to provide that the remaining directors – i.e., those not appointed according to letter a) – are taken from the other slates, subject to compliance with local regulations on minorities that are not connected, including indirectly, with the shareholders who submitted or voted for the most voted slate.

We also propose to amend subparagraph 24, of Article 19 by eliminating the words "in order to be valid", since this clarification is not required by the current legislation in force.

We also propose to introduce a new clause in Article 31 to allow the Board of Auditors to meet also by means of telecommunication systems to simplify its conduct.

Finally, the proposed numbering of the By-laws aims to offer greater clarity and ease of reading, in consulting the By-laws, to the Company, the Shareholders and all stakeholders.

* * * * *

These proposals, and specifically the numbering of the articles' paragraphs in the By-laws and the amendments to Articles 16, 17, 19, 20, 21, 22, 24, 27 and 31, are analytically described in the following table1 .

* * * * *
Article 1
Current text Text highlighting the proposed changes
This
joint
stock
company
was
incorporated
pursuant to a
public deed of notary Carlo Capo
Rome on 29 December 1959 and is denominated
"FINCANTIERI S.p.A." (the "Company").
1.1.
This joint stock company was incorporated
pursuant to a
public deed of notary Carlo Capo
Rome on 29 December 1959 and is denominated
"FINCANTIERI S.p.A." (the "Company").
Article 2
Current text Text highlighting the proposed changes
The Company has its registered office is in Trieste,
Italy. The Company may set up and close local
2.1. The Company has its registered office is in
Trieste, Italy.

1 Please note that the table does not show in Article 19, the amendments proposed by the Shareholder Fintecna, which are highlighted in the Explanatory Report on the first item on the agenda of the extraordinary part.

offices and units, branches, representative and
liaison offices in Italy or abroad.
2.2. The Company may set up and close local offices
and units, branches, representative and liaison
offices in Italy or abroad.
Article 3
Current text Text highlighting the proposed changes
The term of the Company shall be until 31
December 2060 and may be extended, one or more
times, by a shareholders' meeting resolution.
3.1. The term of the Company shall be until 31
December 2060 and may be extended, one or more
times, by a shareholders' meeting resolution.
Article 4
Current text Text highlighting the proposed changes
For the purposes of their relationships with the
Company,
the
address
for
service
of
each
shareholder, director, statutory auditor or external
auditor shall be
as indicated in the Company's
books or as notified by any of the above in writing.
4.1. For the purposes of their relationships with the
Company,
the
address
for
service
of
each
shareholder, director, statutory auditor or external
auditor shall be as indicated in the Company's books
or as notified by any of the above in writing.
Article 5
Current text Text highlighting the proposed changes
The Company shall have for its corporate object: 5.1. The Company shall have for its corporate object:
-
the exercise, including through shareholdings or
investments in companies, already incorporated
or to be incorporated, both in Italy and abroad,
of
manufacturing,
systems-related,
infrastructural, research and training activities
in high technology industries with special focus
on the industrial ship-building, mechanical,
electro-mechanical
and
related
sectors,
including
the
construction,
repair
and
conversion
of
ships
and
other
means
of
transportation, as well as on the construction
and repair of power generators and engines,
and in general on any services connected to the
above activities, and on the performance of
public and private works, under both contracting
arrangements
and
under
concessions,
or
through other legal relationships, either in Italy
or abroad, either on behalf of third parties or on
its own account, in order to realize, in the
context of activities falling within the categories
of general and specialized works referred to in
schedule "A" to the Decree of the President of
the Republic No. 207 of 5 October 2010, as
subsequently amended and supplemented, the
following construction works: power plants;
plants for high/medium voltage transformation
and for the distribution of electricity through
alternating
and
direct
current
and
public
lighting systems; technological plants/systems;
water
and
sewage
plants/systems;
electromechanical
transport
plants/systems;
-
the exercise, including through shareholdings or
investments in companies, already incorporated
or to be incorporated, both in Italy and abroad, of
manufacturing, systems-related, infrastructural,
research and training activities in high technology
industries with special focus on the industrial
ship-building,
mechanical,
electro-mechanical
and related sectors, including the construction,
repair and conversion of ships and other means of
transportation, as well as on the construction and
repair of power generators and engines, and in
general on any services connected to the above
activities, and on the performance of public and
private
works,
under
both
contracting
arrangements and under concessions, or through
other legal relationships, either in Italy or abroad,
either on behalf of third parties or on its own
account, in order to realize, in the context of
activities falling within the categories of general
and specialized works referred to in schedule "A"
to the Decree of the President of the Republic No.
207 of 5 October 2010, as subsequently amended
and supplemented, the following construction
works: power plants; plants for high/medium
voltage transformation and for the distribution of
electricity through alternating and direct current
and
public
lighting
systems;
technological
plants/systems;
water
and
sewage
plants/systems;
electromechanical
transport
plants/systems;
general
construction
and
technical finishing works; plants/systems for the
general construction and technical finishing disposal and recovery of wastes; structural
works; plants/systems for the disposal and components in steel; heating and air conditioning

recovery of wastes; structural components in steel; heating and air conditioning systems; internal electricity, telephone, radiotelephone and television systems;

  • the purchase, management and leasing, including financial leasing, of vessels of all kinds, and the exercise of any activity connected with shipbuilding;
  • the execution of feasibility studies, research, consulting services, the preliminary, basic and functional as well as coordination design and/or also for supplies and services, project and/or contract execution management, operations management, technical-economic feasibility assessments or environmental impact studies, also for third parties;
  • the participation in tenders and contracts and/or concessions awarded by contracting authorities, both public and private.

The Company may acquire interests in other corporations whose industrial, commercial or financial activities are similar, connected or in any event related to its own activities, and/or take charge of the technical and financial coordination of subsidiaries, and provide the latter with financial and management services; the Company may also carry out any and all commercial, industrial and financial transactions including loaning and borrowing (save for collection of savings from the public and professional lending activities) on both personal property and real estate, as may be necessary or useful in the pursuit of its corporate object, including the issuance of guarantees of bonds, also in favor and in the interest of third parties, brokerage activities in the context of inter alia the currency sector, with specific reference to the insurance and financing of export credits and any other transactions permitted or delegated by special regulations and aimed at facilitating the liquidation, management, administration and collection of receivables arising from the exercise by third parties of commercial or industrial activities or the supply of goods and/or services, as well as the purchase and sale of such receivables, with or without recourse, in any form and condition whatsoever, provided that all the above transactions are in any event necessary or useful to achieve the corporate object.

systems; internal electricity, telephone, radiotelephone and television systems; - the purchase, management and leasing, including financial leasing, of vessels of all kinds, and the exercise of any activity connected with

  • shipbuilding; - the execution of feasibility studies, research, consulting services, the preliminary, basic and functional as well as coordination design and/or also for supplies and services, project and/or contract execution management, operations management, technical-economic feasibility assessments or environmental impact studies, also for third parties;
  • the participation in tenders and contracts and/or concessions awarded by contracting authorities, both public and private.

5.2. The Company may acquire interests in other corporations whose industrial, commercial or financial activities are similar, connected or in any event related to its own activities, and/or take charge of the technical and financial coordination of subsidiaries, and provide the latter with financial and management services; the Company may also carry out any and all commercial, industrial and financial transactions including loaning and borrowing (save for collection of savings from the public and professional lending activities) on both personal property and real estate, as may be necessary or useful in the pursuit of its corporate object, including the issuance of guarantees of bonds, also in favor and in the interest of third parties, brokerage activities in the context of inter alia the currency sector, with specific reference to the insurance and financing of export credits and any other transactions permitted or delegated by special regulations and aimed at facilitating the liquidation, management, administration and collection of receivables arising from the exercise by third parties of commercial or industrial activities or the supply of goods and/or services, as well as the purchase and sale of such receivables, with or without recourse, in any form and condition whatsoever, provided that all the above transactions are in any event necessary or useful to achieve the corporate object.

Article 6
Current text Text highlighting the proposed changes
The Company's share capital is EUR 862,980,725.70 6.1.
The
Company's
share
capital
is
EUR
(eight hundred sixty-two million nine hundred 862,980,725.70 (eight hundred sixty-two million nine
eighty thousand seven hundred twenty-five and hundred eighty thousand seven hundred twenty-five
seventy cents) divided into 1,692,119,070 (one and seventy cents) divided into 1,692,119,070 (one
billion six hundred ninety-two million one hundred billion six hundred ninety-two million one hundred
nineteen thousand seventy) shares. nineteen thousand seventy) shares.
The shares have no par value. 6.2. The shares have no par value.
Article 6-bis
Current text Text highlighting the proposed changes
Under Article 3 of Decree Law no. 332 of 31 May
1994, converted with amendments into Law No. 474
of 30 July 1994, no individual other than the Italian
State, state entities or their subsidiaries may hold
in any form Company's shares representing more
than 5 (five) percent of the share capital, except as
provided for by applicable law.
6-bis.1. Under Article 3 of Decree Law no. 332 of 31
May 1994, converted with amendments into Law no.
474 of 30 July 1994, no individual other than the
Italian State, state entities or their subsidiaries may
hold in any form Company's shares representing
more than 5 (five) percent of the share capital, except
as provided for by applicable law.
Calculation of the maximum share ownership takes
into account the aggregate shares held by the
controlling shareholder, be it an individual, a legal
entity, a company or another entity; all direct or
indirect
subsidiaries
and
all
the
companies
controlled by the same holding company, the
associated entities, and the individuals related by
blood, kinship
up
to the second
degree
or
marriage, provided that the spouses are not legally
separated.
6-bis.2.
Calculation
of
the
maximum
share
ownership takes into account the aggregate shares
held by the controlling shareholder, be it an
individual, a legal entity, a company or another entity;
all direct or indirect subsidiaries and all the
companies controlled by the same holding company,
the associated entities, and the individuals related by
blood, kinship up to the second degree or marriage,
provided that the spouses are not legally separated.
Calculation of the 5 (five) percent maximum
shareholding takes into account the shares held by
trust companies and/or fiduciaries and in general
third party intermediaries.
6-bis.3. Calculation of the 5 (five) percent maximum
shareholding takes into account the shares held by
trust companies and/or fiduciaries and in general
third party intermediaries.
No voting and other non-financial rights of the
shares held by shareholders other than the State,
state entities or their respective subsidiaries may
be exercised in relation to the shares exceeding
the 5 percent limit and the voting rights of such
shareholders to whom the limit applies are
reduced pro rata, except where indicated in
advance
by
the
shareholders
involved.
Any
resolution in breach of the above can be challenged
pursuant to article 2377 of the Italian Civil Code, if
the required majority would not have been reached
without the votes in excess of the above limit. The
shares without voting rights are nevertheless
counted for the quorum of the meeting.
6-bis.4. No voting and other non-financial rights of
the shares held by shareholders other than the
State, state entities or their respective subsidiaries
may be exercised in relation to the shares exceeding
the 5 percent limit and the voting rights of
such
shareholders to whom the limit applies are reduced
pro rata, except where indicated in advance by the
shareholders involved. Any resolution in breach of
the above can be challenged pursuant to article 2377
of the Italian Civil Code, if the required majority
would not have been reached without the votes in
excess of the above limit. The shares without voting
rights are nevertheless counted for the quorum of
the meeting.
Article 7
Current text Text highlighting the proposed changes
The shares are registered, indivisible and each
share bears the right to one vote. The shares are
freely transferrable.
7.1. The shares are registered, indivisible and each
share bears the right to one vote. The shares are
freely transferrable.
Article 8
Current text Text highlighting the proposed changes
In case of capital increase, the newly issued shares
shall be offered preemptively to the shareholders,
save as otherwise permitted under applicable law.
8.1. In case of capital increase, the newly issued
shares
shall
be
offered
pre-emptively
to
the
shareholders, save as otherwise permitted under
applicable law.
In case of capital increase, the new shares may 8.2. In case of capital increase, the new shares may
also be paid-up through contributions in kind. also be paid-up through contributions in kind.
The shareholders' meeting may decide to exclude
preemption rights, within the limits and as per
article 2441, letter four, second paragraph, of the
Italian Civil Code.
8.3.
The shareholders' meeting may decide to
exclude preemption rights, within the limits and as
per article 2441, letter four, second paragraph, of
the Italian Civil Code.
The share capital may also be increased by issuing 8.4. The share capital may also be increased by
preferred shares or shares with specific rights, issuing preferred shares or shares with specific
different from those of the existing shares. The rights, different from those of the existing shares.
Company may also issue special categories of The Company may also issue special categories of
shares and financial instruments under article shares and financial instruments under Article 2349
2349 of the Italian Civil Code. of the Italian Civil Code.
The share capital may be reduced by a resolution of 8.5. The share capital may be reduced by a resolution
the shareholders' meeting, also by transferring of the shareholders' meeting, also by transferring
corporate assets to the shareholders. corporate assets to the shareholders.
Article 9
Current text
Text highlighting the proposed changes
The Company may issue bonds, including bonds 9.1. The Company may issue bonds, including bonds
convertible convertible
into into
shares, shares,
in in
compliance compliance
with with
applicable law. applicable law.
Article 10
Current text Text highlighting the proposed changes
The Company may receive loans and other forms of
financing from its shareholders, with or without
interest, subject to repayment and otherwise, in
compliance with applicable law and in particular
with the laws on collection of savings from the
public.
10.1. The Company may receive loans and other
forms of financing from its shareholders, with or
without interest, subject to repayment and otherwise,
in compliance with applicable law and in particular
with the laws on collection of savings from the
public.
Article 11
Current text Text highlighting the proposed changes
Shareholders who did not vote in favour of the
extension of the Company's term, or the creation,
modification or release of restrictions on the
circulation of the shares will have no right of
withdrawal.
11.1. Shareholders who did not vote in favour of the
extension of the Company's term, or the creation,
modification
or release
of restrictions
on
the
circulation of the shares will have no right of
withdrawal.
The Company may request, at any time and at its
own expense, through the centralized securities
administration service, that intermediaries provide
identity details of the shareholders who have not
expressly denied their consent to such disclosure,
and the number of shares registered in their
accounts. When such a request is made upon the
shareholders' request, the procedures provided for
by applicable laws and regulations shall apply, also
in relation to the minimum shareholding required
to submit the application and with the costs
allocated equally between the Company and the
applicant
shareholders,
unless
otherwise
11.2. The Company may request, at any time and at
its own expense, through the centralized securities
administration service, that intermediaries provide
identity details of the shareholders who have not
expressly denied their consent to such disclosure,
and the number of shares registered in their
accounts. When such a request is made upon the
shareholders' request, the procedures provided for
by applicable laws and regulations shall apply, also
in relation to the minimum shareholding required to
submit the application and with the costs allocated
equally between the Company and the applicant
shareholders,
unless
otherwise
determined
by
determined by applicable law. applicable law.
Article 12
Current text Text highlighting the proposed changes
The
annual and special shareholders' meetings
shall be convened by the board of directors and are
ordinarily held at the registered office of the
Company, unless otherwise decided by the board of
directors.
12.1. The annual and special shareholders' meetings
shall be convened by the board of directors and are
ordinarily held at the registered office of the
Company, unless otherwise decided by the board of
directors.
The
annual
shareholders'
meeting
shall
be
convened at least once a year to approve the
financial statements within 120 days of the end of
the financial year, or within 180 days in cases for
which the law provides for such longer term.
12.2. The annual shareholders' meeting shall be
convened at least once a year to approve the
financial statements within 120 days of the end of the
financial year, or within 180 days in cases for which
the law provides for such longer term.
Article 13
Current text Text highlighting the proposed changes
The shareholders' meeting must be convened by a
notice published on the Company website, in
compliance with the formalities provided for in
Consob regulations and within the deadlines
provided under the applicable law.
13.1. The shareholders' meeting must be convened
by a notice published on the Company website, in
compliance with the formalities provided for in
Consob
regulations
and
within
the
deadlines
provided under the applicable law.
Shareholders' meetings shall be held in a single
sitting. The board of directors may however decide,
whenever it deems it necessary, that the general
and special shareholders' meetings be held in
more than one sitting.
13.2.
Shareholders' meetings shall be held in a
single sitting. The board of directors may however
decide, whenever it deems it necessary, that the
general and special shareholders' meetings be held
in more than one sitting.
Article 14
Current text Text highlighting the proposed changes
The right to attend shareholders' meetings and the
procedures
for
exercising
voting
rights
are
regulated by applicable law.
14.1. The right to attend shareholders' meetings and
the procedures for exercising voting rights are
regulated by applicable law.
Article 15
Current text Text highlighting the proposed changes
All
shareholders
entitled
to
speak
at
the
shareholders' meeting may be represented thereat
through
a
written
or
electronic
proxy,
in
accordance with applicable law.
15.1.
All shareholders entitled to speak at the
shareholders' meeting may be represented thereat
through a written or electronic proxy, in accordance
with applicable law.
The proxy may be notified to the Company
electronically, through certified electronic mail or
using a dedicated section of the website, as
indicated from time to time in the convening notice.
15.2. The proxy may be notified to the Company
electronically, through certified electronic mail or
using a dedicated section of the website, as indicated
from time to time in the convening notice.
In order to facilitate the collection of proxies from
shareholders who are employees of the Company
or
of
its
subsidiaries
and
are
affiliated
to
shareholders
associations
meeting
the
requirements under applicable law, dedicated
spaces
shall
be
made
available
to
these
associations for the communication and collection
15.3. In order to facilitate the collection of proxies
from shareholders who are employees of the
Company or of its subsidiaries and are affiliated to
shareholders associations meeting the requirements
under applicable law, dedicated spaces shall be
made
available
to
these
associations
for
the
communication and collection of proxies, according
of proxies, according to the terms agreed from
time to time with their legal representatives.
to the terms agreed from time to time with their
legal representatives.
The chairman is in charge of verifying the validity of
the proxies and in general the right to attend the
shareholders' meeting.
15.4. The chairman is in charge of verifying the
validity of the proxies and in general the right to
attend the shareholders' meeting.
The Company may designate for each meeting a
person to whom shareholders may grant a proxy
with voting instructions on all
or some of the
resolutions on the agenda, in accordance with
applicable law and regulations. The proxy shall not
be valid for resolutions for which no voting
instructions have been given.
15.5. The Company may designate for each meeting a
person to whom shareholders may grant a proxy with
voting instructions on all or some of the resolutions
on the agenda, in accordance with applicable law and
regulations. The proxy shall not be valid for
resolutions for which no voting instructions have
been given.
If
so
provided
in
the
meeting
notice,
the
shareholders with voting rights: (i) may attend the
meeting by telecommunication means and exercise
their rights to vote by electronic means and/or (ii)
cast their vote by mail and/or electronically, in
accordance with applicable laws and regulations.
15.6.
If so provided in the meeting notice, the
shareholders with voting rights: (i) may attend the
meeting by telecommunication means and exercise
their rights to vote by electronic means and/or (ii)
cast their vote by mail and/or electronically, in
accordance with applicable laws and regulations.
The meetings shall be governed by the Rules of
Procedure approved by resolution of the annual
general meeting of the Company.
15.7. The meetings shall be governed by the Rules of
Procedure approved by resolution of the annual
general meeting of the Company.
Article 16
Current text Text highlighting the proposed changes
The shareholders' meeting shall be chaired by the
chairman of the board of directors, or any other
person delegated by the board of directors, failing
which the shareholders' meeting shall elect its own
chairman.
16.1. The shareholders' meeting shall be chaired by
the chairman of the board of directors, or if the
chairman is absent or unavailable, by the vice
chairman if appointed; if the vice-chairman is also
absent or unavailable, the meeting shall be chaired
by
any other person delegated by the board of
directors, failing which the shareholders' meeting
shall elect its own chairman.
The
shareholders'
meeting
shall
appoint
a
secretary, who needs not be a shareholder, and
may select one or more scrutineers amongst the
attendees.
16.2. The shareholders' meeting shall appoint a
secretary, who needs not be a shareholder, and may
select
one
or
more
scrutineers
amongst
the
attendees.
Article 17
Current text
The shareholders' meeting shall resolve on all the Text highlighting the proposed changes
subjects attributed to the shareholders by law or in
the By-laws.
17.1. The shareholders' meeting shall resolve on all
the subjects attributed to the shareholders by law or
in the By-laws.
Unless otherwise provided in the By-laws, the
shareholders resolutions must be approved by the
majority required by the law in each case, for both
annual and special meetings, and in first, second
or third sitting, or in a single sitting.
17.2. Unless otherwise provided in the By-laws, the
shareholders resolutions must be approved by the
majority required by the law in each case, for both
annual and special meetings, and in first, second or
third sitting, or in a single sitting.
The minutes of the special shareholders' meetings
must be drafted by an Italian notary.
The minutes of the special shareholders' meetings
must be drafted by an Italian notary .
Article 18
Current text Text highlighting the proposed changes
The Company is managed by the board of directors.
The control functions are entrusted to the board of
statutory auditors and the external auditor in
accordance with the law and the by-laws.
18.1. The Company is managed by the board of
directors. The control functions are entrusted to the
board of statutory auditors and the external auditor
in accordance with the law and the by-laws.
Article 19
Current text Text highlighting the proposed changes
The Company shall be managed by a board of
directors composed of not less than seven and not
more than thirteen members.
19.1. The Company shall be managed by a board of
directors composed of not less than seven and not
more than thirteen members.
The shareholders' meeting shall from time to time
establish the number of the board members within
the limits specified above. The shareholders'
meeting may vary the number of board members,
also during their term, in compliance with the first
provision of this article, and appoint them with the
procedures provided hereby. The directors so
appointed will leave together with those who were
in office at the time of their appointment.
19.2. The shareholders' meeting shall from time to
time establish the number of the board members
within the limits specified above. The shareholders'
meeting may vary the number of board members,
also during their term, in compliance with the first
provision of this article, and appoint them with the
procedures provided hereby. The directors so
appointed will leave together with those who were
in office at the time of their appointment.
The members of the board of directors are
appointed
by
the
shareholders'
meeting
in
compliance with the laws on equal access of the
under-represented gender to the corporate bodies.
19.3. The members of the board of directors are
appointed
by
the
shareholders'
meeting
in
compliance with the laws on equal access of the
under-represented gender to the corporate bodies.
Under the D.P.C.M. of 25 May 2012 on "Guidelines,
terms and conditions to implement separation of
ownership of SNAM S.p.A. under Article 15 of Law
27 of 24 March 2012" (the "P.M.C.M."), directors
may not hold any office in the administrative or
control body, or management positions in Eni S.p.A.
or its subsidiaries, nor entertain any direct or
indirect relationship of a professional or financial
nature with these companies.
19.4.
Under the D.P.C.M.
of 25 May 2012 on
"Guidelines, terms and conditions to implement
separation of ownership of SNAM S.p.A. under
Article 15 of Law 27 of 24 March 2012" (the
"P.M.C.M."), directors may not hold any office in the
administrative or control body, or management
positions in Eni S.p.A. or its subsidiaries, nor
entertain any direct or indirect relationship of a
professional
or
financial
nature
with
these
companies.
Appointees to the board of directors must meet
certain professional and competence requirements
as listed below. In particular, directors must be
selected
on
the
basis
of
their
professional
experience and competence and have at least three
years of experience in:
19.5. Appointees to the board of directors must
meet
certain
professional
and
competence
requirements
as
listed
below.
In
particular,
directors must be selected on the basis of their
professional experience and competence and have
at least three years of experience in:
a)
a management or control position, or other
position with managerial responsibilities in
corporations, or,
a)
a management or control position, or other
position with managerial responsibilities in
corporations, or,
b)
professional activities or university teaching
experience
in
law,
economics,
finance
or
technical-scientific
subjects,
connected
or
anyway functional to business activity, or,
b)
professional activities or university teaching
experience in law, economics, finance or
technical-scientific
subjects,
connected
or
anyway functional to business activity, or,

If the board of directors so finds, the director shall be removed from office for cause, without any right to damages unless the board of directors, within ten days, convenes a shareholders' meeting to be held within the following sixty days, and submits to If the board of directors so finds, the director shall be removed from office for cause, without any right to damages unless the board of directors, within ten days, convenes a shareholders' meeting to be held within the following sixty days, and submits to

the shareholders' vote a proposal hereby such the shareholders' vote a proposal hereby such
directors remain in office and that this in the best directors remain in office and that this in the best
interest of the Company. If the assessment by the interest of the Company. If the assessment by the
board of directors is made after the end of the board of directors is made after the end of the
financial year, the proposal is submitted to the financial year, the proposal is submitted to the
shareholders' meeting convened for approval of the shareholders' meeting convened for approval of the
financial statements, without prejudice to any term financial statements, without prejudice to any term
imposed by applicable law. imposed by applicable law.
If the shareholders' meeting does not approve the If the shareholders' meeting does not approve the
proposal of the board of directors, the director is proposal of the board of directors, the director is
immediately removed for cause, without any right to immediately removed for cause, without any right to
damages. damages.
Notwithstanding the above, if the chief executive Notwithstanding the above, if the chief executive
officer (amministratore delegato)becomes subject officer (amministratore delegato)becomes subject
to: to:
a) a)
imprisonment, or imprisonment, or
b) b)
pre-trial detention or house arrest, following pre-trial detention or house arrest, following the
the procedure under Article 309 or Article 311, procedure under Article 309 or Article 311,
paragraph 2, of the Italian Code of Criminal paragraph 2, of the Italian Code of Criminal
Procedure, or after the expiration of the term Procedure, or after the expiration of the term
thereof, thereof,
he or she shall automatically be removed for cause, he or she shall automatically be removed for cause,
without any right to damages, and all powers without any right to damages, and all powers
delegated to him or her are immediately revoked. delegated to him or her are immediately revoked.
The chief executive officer shall automatically be
removed if he or she is subject to other restrictions
of personal freedom, whenever the board of
directors
considers
such
measures
to
be
incompatible with the performance of the director's
duties.
The chief executive officer shall automatically be
removed if he or she is subject to other restrictions
of personal freedom, whenever the
board of
directors
considers
such
measures
to
be
incompatible with the performance of the director's
duties.
For the purposes of this provision, a plea bargain For the purposes of this provision, a plea bargain
judgment under Article 444 of the Italian Code of judgment under Article 444 of the Italian Code of
Criminal Criminal
Procedure Procedure
is is
equivalent equivalent
to to
a a
final final
judgment of conviction, except in case of extinction judgment of conviction, except in case of extinction
of the crime. of the crime.
For the purposes of this provision, the board of For the purposes of this provision, the board of
directors shall ascertain the existence of the facts directors shall ascertain the existence of the facts
provided for therein, for cases governed in whole or provided for therein, for cases governed in whole or
in part by foreign laws, on the basis of substantial in part by foreign laws, on the basis of substantial
equivalence. equivalence.
The board of directors shall be elected by the 19.7. The board of directors shall be elected by the
shareholders' meeting from slates submitted by the shareholders' meeting from slates submitted by the
shareholders and by the board of directors. shareholders and by the board of directors.
Candidates Candidates
in in
a a
slate slate
must must
be be
numbered numbered
consecutively. consecutively.
Slates shall be submitted at the Company's
registered office within the time and as prescribed
by applicable law.
Slates shall be submitted at
the Company's
registered office within the time and as provided by
applicable law.
A shareholder may submit or take part in the A shareholder may submit or take part in the
submission of, and vote only one slate. submission of, and vote only one slate.
A candidate may only stand in a single slate, under A candidate may only stand in a single slate, under
penalty of ineligibility. penalty of ineligibility.
Only shareholders who, alone or together with Only shareholders who, alone or together with
other shareholders, represent at least 1% of the other shareholders, represent at least 1% of the
share capital or such lower percentage as provided share capital or such lower percentage as provided
in Consob's regulations may submit slates. in Consob's regulations may submit slates.
Ownership of the minimum stake necessary to Ownership of the minimum stake necessary to
submit slates shall be verified within the term and submit slates shall be verified within the term and
as provided by the laws applicable from time to as provided by the laws applicable from time to
time. time.
Each slate must include at least two candidates Each slate must include at least two candidates
satisfying the independence requirements provided satisfying the independence requirements provided
for by the law and mention them separately. One of for by the law and mention them separately. One of
such candidates must be the first in the slate. such candidates must be the first in the slate.
All All
candidates candidates
must must
meet meet
the the
integrity integrity
requirements provided for by applicable laws and requirements provided for by applicable laws and
the by-laws. the by-laws.
Slates that have three or more candidates must Slates that have three or more candidates must
also include candidates of different gender, as also include candidates of different gender, as
indicated in the notice of meeting, so to ensure that indicated in the notice of meeting, so to ensure that
the composition of the board of directors is the composition of the board of directors is
compliant with the applicable laws on gender compliant with the applicable laws on gender
equality. equality.
In
order
to
be
valid,
each
slate
must
be
accompanied by the professional curriculum vitae
of each candidate and a statement whereby each
candidate accepts the candidacy and declares
under his or her responsibility that there are no
causes of ineligibility and incompatibility, and that
he or she meets the above integrity and, if
applicable, independence requirements.
19.8. In order to be valid, Each slate must be
accompanied by the professional curriculum vitae
of each candidate and a statement whereby each
candidate accepts the candidacy and declares
under his or her responsibility that there are no
causes of ineligibility and incompatibility, and that
he or she meets the above integrity and, if
applicable, independence requirements.
The appointed candidates shall promptly notify the The appointed candidates shall promptly notify the
board of directors if they cease to meet the board of directors if they cease to meet the
requirements that were satisfied at the time of the requirements that were satisfied at the time of the
appointment or in case any cause for ineligibility or appointment or in case any cause for ineligibility or
incompatibility has arisen. incompatibility has arisen.
The election of directors shall be carried out as 19.9. The election of directors shall be carried out
follows: as follows:
a) a)
from the slate that has obtained the majority of from the slate that has obtained the majority of
the shareholders' votes the following shall be the shareholders' votes the following shall be
elected in the progressive order used in the elected in the progressive order used in the
slate: (i) two-thirds of the directors to be slate: (i) two-thirds of the directors to be
appointed, with fractions being rounded to the appointed, with fractions being rounded to the
next lower integer, if the board of directors next lower integer, if the board of directors
consists of no more than nine members; (ii) consists of no more than nine members; (ii)
seven directors, if the board of directors seven directors, if the board of directors
consists of ten members; (iii) eight directors, if consists of ten members; (iii) eight directors, if
the board of directors consists of eleven the board of directors consists of eleven
members; (iv) nine directors, if the board of members; (iv) nine directors, if the board of

directors consists of twelve members; and (v) ten directors if the board of directors consists of thirteen members;

  • b) the remaining directors will be taken from the other slates which are not in any way linked, even indirectly, with the shareholders who submitted or voted for the most voted slate. For this purpose, the votes obtained by said slates will subsequently be divided by one, two or three, according to the number of directors to be elected. The ratios thus obtained shall progressively be attributed to the candidates of each slate, according to their order. The ratios thus attributed to the candidates of the various slates shall be arranged in descending order. Those who shall have obtained the highest ratios will be elected. If more candidates obtain the same ratio, the candidate of the slate with no candidates elected or that with the lowest number of candidates elected shall be appointed as director. If none of these slates has yet elected a director or if all have elected the same number of directors, the candidate from the slate with more votes will be elected. If candidates receive the same number of votes and are attributed the same ratio, the shareholders' meeting shall cast a new vote among the candidates with the same ratio from slates who elected the same number of directors (or none) and that obtained the same number of votes, according to the procedure in letter e) below;
  • c) if, following the procedure described above, the minimum number of independent directors required by the law had not been appointed yet, the number of votes to be allocated to each candidate of the various slates shall be calculated by dividing the number of votes obtained by each slate by the ranking number of each candidate, in order to create a single decreasing ranking list; the candidates who do not meet the independence requirements and with the lowest ratios among the candidates from all the slates, shall be replaced, starting from the last one and up to the minimum number of independent directors under applicable law, by the independent candidates (if any) from the same slate of the replaced candidate (according to the order in which they are indicated), or individuals meeting the independence requirements and elected through the procedure set forth by letter e) below. In the event two or more candidates of different slates obtained the same ratio, the candidate to be replaced shall be that of the slate with the highest number of elected

directors consists of twelve members; and (v) ten directors if the board of directors consists of thirteen members;

  • b) the remaining directors will be taken from the other slates, without prejudice to the compliance with the applicable law on minority shareholders which are not in any way linked, even indirectly, with the shareholders who submitted or voted for the most voted slate. For this purpose, the votes obtained by said slates will subsequently be divided by one, two or three, according to the number of directors to be elected. The ratios thus obtained shall progressively be attributed to the candidates of each slate, according to their order. The ratios thus attributed to the candidates of the various slates shall be arranged in descending order. Those who shall have obtained the highest ratios will be elected. If more candidates obtain the same ratio, the candidate of the slate with no candidates elected or that with the lowest number of candidates elected shall be appointed as director. If none of these slates has yet elected a director or if all have elected the same number of directors, the candidate from the slate with more votes will be elected. If candidates receive the same number of votes and are attributed the same ratio, the shareholders' meeting shall cast a new vote among the candidates with the same ratio from slates who elected the same number of directors (or none) and that obtained the same number of votes, according to the procedure in letter e) below;
  • c) if, following the procedure described above, the minimum number of independent directors required by the law had not been appointed yet, the number of votes to be allocated to each candidate of the various slates shall be calculated by dividing the number of votes obtained by each slate by the ranking number of each candidate, in order to create a single decreasing ranking list; the candidates who do not meet the independence requirements and with the lowest ratios among the candidates from all the slates, shall be replaced, starting from the last one and up to the minimum number of independent directors under applicable law, by the independent candidates (if any) from the same slate of the replaced candidate (according to the order in which they are indicated), or individuals meeting the independence requirements and elected through the procedure set forth by letter e) below. In the event two or more candidates of different slates obtained the same ratio, the candidate to be replaced shall be that of the slate with the highest number of elected

directors, or if more slates had elected the highest number of directors, the candidate belonging to the slate with fewer votes, or in the event of a tie, the candidate who receives fewer votes in a special shareholders' vote on all the candidate with the same ratio and from slates with the same number of directors elected, through the procedure set forth by letter e) below;

  • d) when the procedures under letter a) and b) do not ensure compliance with the applicable laws on balance between genders, the ratio of votes to be allocated to each candidate from the slates with three or more candidates will be calculated by dividing the number of votes obtained by each slate by the ranking number of each candidate, in order to create a single decreasing ranking list; the candidates of the most represented gender with the lowest ratios and from the above slates are therefore replaced, up to the number of independent directors sufficient to comply with the laws on balance between genders and without prejudice to the minimum number of independent directors, by the candidate of the less represented gender, if any, ranked immediately lower from the same slate of the replaced candidate. In the event two or more candidates of different slates obtained the same ratio, the candidate to be replaced shall be (i) the candidate from the slate that elected the highest number of directors, or (ii) in the event the same number of directors were elected from more slates, the candidate of the slate with fewer votes, or (iii) in the event of a tie, the candidate who obtains fewer votes in a special shareholders' vote on the candidates with the same ratio, and belonging to slates which elected the same number of directors, through the procedure set forth by letter e) below;
  • e) directors for any reason not appointed pursuant to the aforementioned procedures will be appointed by the shareholders' meeting, with the majorities prescribed by the law, so as to ensure that the composition of the board of directors complies with applicable laws and regulations, the bylaws, and applicable rules on balance between genders.

Directors are appointed for up to three financial years, and their mandate expires on the date of the shareholders' meeting convened to approve the financial statements for the last financial year of their term. Directors may be reappointed pursuant Article 2383 of the Italian Civil Code.

directors, or if more slates had elected the highest number of directors, the candidate belonging to the slate with fewer votes, or in the event of a tie, the candidate who receives fewer votes in a special shareholders' vote on all the candidate with the same ratio and from slates with the same number of directors elected, through the procedure set forth by letter e) below;

  • d) when the procedures under letter a) and b) do not ensure compliance with the applicable laws on balance between genders, the ratio of votes to be allocated to each candidate from the slates with three or more candidates will be calculated by dividing the number of votes obtained by each slate by the ranking number of each candidate, in order to create a single decreasing ranking list; the candidates of the most represented gender with the lowest ratios and from the above slates are therefore replaced, up to the number of independent directors sufficient to comply with the laws on balance between genders and without prejudice to the minimum number of independent directors, by the candidate of the less represented gender, if any, ranked immediately lower from the same slate of the replaced candidate. In the event two or more candidates of different slates obtained the same ratio, the candidate to be replaced shall be (i) the candidate from the slate that elected the highest number of directors, or (ii) in the event the same number of directors were elected from more slates, the candidate of the slate with fewer votes, or (iii) in the event of a tie, the candidate who obtains fewer votes in a special shareholders' vote on the candidates with the same ratio, and belonging to slates which elected the same number of directors, through the procedure set forth by letter e) below;
  • e) directors for any reason not appointed pursuant to the aforementioned procedures will be appointed by the shareholders' meeting, with the majorities prescribed by the law, so as to ensure that the composition of the board of directors complies with applicable laws and regulations, the bylaws, and applicable rules on balance between genders.

19.10. Directors are appointed for up to three financial years, and their mandate expires on the date of the shareholders' meeting convened to approve the financial statements for the last financial year of their term. Directors may be reappointed pursuant Article 2383 of the Italian Civil Code.

If one or more board members cease to serve in 19.11. If one or more board members cease to

office, due to resignations or for any other reasons
during a financial year, article 2386 of the Italian
Civil Code shall apply.
serve in office, due to resignations or for any other
reasons during a financial year, article 2386 of the
Italian Civil Code shall apply.
The minimum number of independent directors
provided by law, and the rules on balance between
genders and representation of the minorities must
in any case be complied with.
The minimum number of independent directors
provided by law, and the rules on balance between
genders and representation of the minorities must
in any case be complied with.
If more than one third of the board members
ceases to serve in office, due to resignations or
other causes, the entire board shall automatically
be removed and a shareholders' meeting will be
convened to appoint a new board of directors,
pursuant to the procedures under Article 2386 of
the Italian Civil Code for reappointment of the entire
board.
If more than one third of the board members
ceases to serve in office, due to resignations or
other causes, the entire board shall automatically
be removed and a shareholders' meeting will be
convened to appoint a new board of directors,
pursuant to the procedures under Article 2386 of
the Italian Civil Code for reappointment of the entire
board.
Article 20
Current text Text highlighting the proposed changes
The board of directors shall elect a chairman
among its members, unless the appointment has
already been made by the shareholders' meeting.
20.1. The board of directors shall elect a chairman
among its members, unless the appointment has
already been made by the shareholders' meeting;
the board of directors may elect a vice-chairman to
replace the chairman in the event of absence or
impediment of the latter.
The board of directors may delegate some or all of
its powers, save for those that may not be
delegated by law, to one or more board members
and/or to an executive committee. The directors,
within the limits of the powers conferred to them,
may delegate powers and the legal representation
of
the
Company
for
specific
documents
or
categories of documents to employees of the
Company or to third parties.
20.2. The board of directors may delegate some or
all of its powers, save for those that may not be
delegated by law, to one or more board members
and/or to an executive committee. The directors,
within the limits of the powers conferred to them,
may delegate powers and the legal representation
of
the
Company
for
specific
documents
or
categories of documents to employees of the
Company or to third parties.
The board of directors shall also appoint a
secretary, who needs not be an employee of the
Company.
20.3. The board of directors shall also appoint a
secretary, who needs not be an employee of the
Company.
Article 21
Current text Text highlighting the proposed changes
The board of directors shall meet at the venue
specified in the related notice, at the registered
office or elsewhere, whenever the chairman deems
it necessary, or whenever such a meeting is
requested by at least one third of the board
members (rounded down to the next lower integral)
or by the board of statutory auditors.
21.1. The board of directors shall meet at the venue
specified in the related notice, at the registered
office or elsewhere, whenever the chairman, or in
the event of absence or impediment of the
chairman, the vice-chairman, if appointed, deems it
necessary, or whenever such meeting is requested
by at least one third of the board members
(rounded down to the next lower integral) or by the
board of statutory auditors.
Board of directors' meetings may be held by audio
or video conference call, provided that each of the
attendees can be identified by all the others, and is
able to take part in real time in the discussion on
21.2 Board of directors' meetings may be held by
audio or video conference call, provided that each of
the attendees can be identified by all the others,
and is able to take part in real time in the

attributed under the By-laws, is in charge of: approving all resolutions on mergers and demergers as provided by applicable law, the opening or closing of local offices, the attribution of legal representation powers to one or more directors, the reduction of the share capital in case of one or more shareholders withdrawals, any amendments to the bylaws to comply with applicable laws and the transfer of the registered office within the territory of Italy.

powers attributed under the By-laws, is in charge of: approving all resolutions on mergers and demergers as provided by applicable law, the opening or closing of local offices, the attribution of legal representation powers to one or more directors, the reduction of the share capital in case of one or more shareholders withdrawals, any amendments to the bylaws to comply with applicable laws and the transfer of the registered office within the territory of Italy.

Article 26
Current text Text highlighting the proposed changes
Upon mandatory opinion of the board of statutory
auditors, the board of directors shall appoint a
manager in charge of the Company's financial
reports, for a term at least equal to that of the
board itself, but not exceeding six financial years,
and determine the manager's term in office,
powers, responsibilities and remuneration. The
board of directors has the power to remove the
manager. The manager in charge of the Company's
financial reports must have professional experience
in accounting, finance and control, meet the
integrity
requirements
for
directors
and
in
accordance with the D.P.C.M. may not hold any
administration, control or any managerial position,
in Eni S.p.A. or its subsidiaries, or have any direct or
indirect relationship, of professional or financial
nature, with these companies.
26.1.
Upon mandatory opinion of the board of
statutory auditors, the board of directors shall
appoint a manager in charge of the Company's
financial reports, for a term at least equal to that of
the board itself, but not exceeding six financial
years, and determine the manager's term in office,
powers, responsibilities and remuneration. The
board of directors has the power to remove the
manager. The manager in charge of the Company's
financial reports must have professional experience
in accounting, finance and control, meet the
integrity
requirements
for
directors
and
in
accordance with the D.P.C.M. may not hold any
administration, control or any managerial position,
in Eni S.p.A. or its subsidiaries, or have any direct or
indirect relationship, of professional or financial
nature, with these companies.
Failure to meet the above requirements will result
in forfeiture of office, to be declared by the board of
directors at the meeting immediately following the
date on which such failure first came to light. The
manager in charge of preparing the Company's
financial reports shall attend the board meetings at
which matters under his or her responsibility are
discussed.
26.2. Failure to meet the above requirements will
result in forfeiture of office, to be declared by the
board of directors at the meeting immediately
following the date on which such failure first came
to light. The manager in charge of preparing the
Company's financial reports shall attend the board
meetings at which matters under his or her
responsibility are discussed.
If necessary, the board may appoint one or more
special
technical
or
administrative
advisory
committees, whose members need not be board
members, and determine remuneration of its
members.
26.3. If necessary, the board may appoint one or
more special technical or administrative advisory
committees, whose members need not be board
members, and determine remuneration of its
members.
The board may also appoint general managers and
representatives
of
the
Company,
as
well
as
attorneys-in-fact
for
specific
transactions,
documents or types of documents and establish
their powers.
26.4. The board may also appoint general managers
and representatives of the Company, as well as
attorneys-in-fact
for
specific
transactions,
documents or types of documents and establish
their powers.
Article 27
Current text Text highlighting the proposed changes
The chairman is the legal representative of the
Company before any courts and administrative
authorities and third parties and has signing
authority.
27.1. The chairman, or in the event of absence or
impediment by the latter, the vice-chairman, if
appointed, is the legal representative of the
Company before any courts and administrative
authorities and third parties and has signing
authority.
The vice-chairman's signature shall be construed
as evidence vis-à-vis third parties of the chairman's
absence or impediment.
The chief executive officer, if appointed, and the
other persons so authorized by the board of
directors, including non-directors, may represent
the Company and have signing authority within the
scope of the powers delegated to them. The related
board resolutions must be published in accordance
with applicable law.
27.2. The chief executive officer, if appointed, and
the other persons so authorized by the board of
directors, including non-directors, may represent
the Company and have signing authority within the
scope of the powers delegated to them. The related
board resolutions must be published in accordance
with applicable law.
Article 28
Current text Text highlighting the proposed changes
Board members shall be entitled to a refund of all
expenses incurred in connection with their official
duties, and to remuneration as determined by the
annual shareholders' meeting, which may exercise
the option under art. 2389, paragraph 3 of the
Italian Civil Code. Once approved, the related
shareholders' resolution shall also apply to the
subsequent financial years until the shareholders
determine otherwise.
28.1. Board members shall be entitled to a refund
of all expenses incurred in connection with their
official duties, and to remuneration as determined
by the annual shareholders' meeting, which may
exercise the option under art. 2389, paragraph 3 of
the Italian Civil Code. Once approved, the related
shareholders' resolution shall also apply to the
subsequent financial years until the shareholders
determine otherwise.
The remuneration for directors performing special
functions is determined by the board of directors in
accordance with applicable laws.
28.2. The remuneration for directors performing
special functions is determined by the board of
directors in accordance with applicable laws.
Directors must comply with the duty not to compete
with the Company under Article 2390 of the Italian
Civil Code.
28.3. Directors must comply with the duty not to
compete with the Company under Article 2390 of
the Italian Civil Code.
Article 29
Current text Text highlighting the proposed changes
In case of urgency, and in accordance with the
related parties procedures of the Company, the
related party transactions which are not reserved to
the shareholders and need not be authorized by the
latter may be carried out by way of derogation from
articles 7 and 8 of Consob regulation n. 17221 of 12
March 2010 on related parties transactions, without
prejudice to the requirements imposed by other
applicable laws.
29.1. In case of urgency, and in accordance with the
related parties procedures of the Company, the
related party transactions which are not reserved to
the shareholders and need not be authorized by the
latter may be carried out by way of derogation from
articles 7 and 8 of Consob regulation n. 17221 of 12
March 2010 on related parties transactions, without
prejudice to the requirements imposed by other
applicable laws.
In cases of urgent related party transactions within
the shareholders' reserve powers under article 11,
paragraph five, of the above regulation, the related
party transactions procedure may allow for these
transactions to be carried out by way of derogation
from paragraphs 1, 2 and 3 of article 11 of the
above
regulation,
without
prejudice
to
the
requirements imposed by other applicable laws. If
the conclusions of the supervisory body, pursuant
to article 13, paragraph 6, letter c), are negative, the
shareholders' meeting shall decide as per the
29.2. In cases of urgent related party transactions
within the shareholders' reserve powers under
article 11, paragraph five, of the above regulation,
the related party transactions procedure may allow
for these transactions to be carried out by way of
derogation from paragraphs 1, 2 and 3 of article 11
of the above regulation, without prejudice to the
requirements imposed by other applicable laws. If
the conclusions of the supervisory body, pursuant to
article 13, paragraph 6, letter c), are negative, the
shareholders' meeting shall decide as per the
procedures set by the following paragraph. procedures set by the following paragraph.
The procedures on related party transactions may
also give shareholders the power to authorize,
pursuant to article 2364, paragraph 1, number 5) of
the Italian Civil Code, or approve a more significant
related party transaction, even in spite of the
independent
directors'
view
to
the
contrary,
pursuant to article 8, paragraph 2 and to article 11,
paragraphs
2
and
3
of
the
aforementioned
regulation, provided that:
29.3. The procedures on related party transactions
may also give shareholders the power to authorize,
pursuant to article 2364, paragraph 1, number 5) of
the Italian Civil Code, or approve a more significant
related party transaction, even in spite of the
independent
directors'
view
to
the
contrary,
pursuant to article 8, paragraph 2 and to article 11,
paragraphs
2
and
3
of
the
aforementioned
regulation, provided that:
(i)
the attendance quorum and majority provided by
the by-laws are met, and
(i)
the attendance quorum and majority provided
by the by-laws are met, and
(ii) if the non-related shareholders attending the
meeting represent at least 10% of the share
capital with voting rights, the majority of non
related voting shareholders does not vote
against the transaction.
(ii)
if the non-related shareholders attending the
meeting represent at least 10% of the share
capital with voting rights, the majority of non
related voting shareholders does not vote
against the transaction.
Article 30
Current text Text highlighting the proposed changes
In
accordance
with
applicable
laws,
the
shareholders' meeting shall appoint the board of
statutory auditors, to be
composed
of three
permanent
members
and
three
alternate
members, and decide the remuneration of the
permanent members.
30.1.
In accordance with applicable laws, the
shareholders' meeting shall appoint the board of
statutory auditors, to be
composed
of
three
permanent members and three alternate members,
and decide the remuneration of the permanent
members.
The composition of the board of statutory auditors
must comply with applicable laws on equal access
of the under-represented gender to the corporate
bodies.
30.2. The composition of the board of statutory
auditors must comply with applicable laws on equal
access of the under-represented gender to the
corporate bodies.
Under the D.P.C.M. the statutory auditors may not
hold any office in the management or control
bodies, or management positions in ENI S.p.A. or
its subsidiaries, nor entertain any direct or indirect
relationship of a professional or financial nature
with those companies.
30.3. Under the D.P.C.M. the statutory auditors may
not hold any office in the management or control
bodies, or management positions in ENI S.p.A. or its
subsidiaries, nor entertain any direct or indirect
relationship of a professional or financial nature
with those companies.
The members of the statutory board must meet the
professional and integrity requirements under the
Ministry of Justice Decree 30 March 2000, n. 162.
For the purposes of article 1, paragraph 2, letters b)
and c) of the above Decree, activities related to
business and tax law, corporate management and
finance
and
sectors
connected
to
naval
engineering, are deemed to be closely related to
the company's business. Statutory auditors may act
as directors in other companies within the limits
set forth under Consob regulations.
30.4. The members of the statutory board must
meet the professional and integrity requirements
under the Ministry of Justice Decree 30 March 2000,
n. 162. For the purposes of article 1, paragraph 2,
letters b) and c) of the above Decree, activities
related
to
business
and
tax
law,
corporate
management and finance and sectors connected to
naval engineering, are deemed to be closely related
to the company's business. Statutory auditors may
act as directors in other companies within the limits
set forth under Consob regulations.
The board of statutory auditors is appointed on the
basis of slates submitted by the shareholders.
Candidates in a slate are numbered consecutively
and cannot be more than the number of statutory
30.5. The board of statutory auditors is appointed on
the basis of slates submitted by the shareholders.
Candidates in a slate are numbered consecutively
and cannot be more than the number of statutory
auditors to be appointed. auditors to be appointed.
Slates can only be submitted by shareholders who
hold, either individually
or jointly with
other
shareholders, at least the minimum shareholding
required by the bylaws to submit
slates
of
candidates for the board of directors.
Slates can only be submitted by shareholders who
hold, either individually
or jointly with
other
shareholders, at least the minimum shareholding
required
by
the bylaws to submit
slates
of
candidates for the board of directors.
The submission, deposit and publication of the The submission, deposit and publication of the
slates are subject to the provisions of the by-laws slates are subject to the provisions of the by-laws
on appointment of directors and to applicable laws. on appointment of directors and to applicable laws.
The slates are divided in a section for candidates to The slates are divided in a section for candidates to
permanent auditors and another for candidates to permanent auditors and another for candidates to
substitute auditors. The first candidate for each substitute auditors. The first candidate for each
section shall be an accountant enrolled with the section shall be an accountant enrolled with the
registry of auditors and have exercised audit registry of auditors and have exercised audit
activities for no less than three years. activities for no less than three years.
Pursuant to applicable laws on equal access, the Pursuant to applicable laws on equal access, the
first two candidates in both the permanent auditors first two candidates in both the permanent auditors
and the alternate auditors section in slates with and the alternate auditors section in slates with
three or more candidates in aggregate for both three or more candidates in aggregate for both
sections must be of a different gender. sections must be of a different gender.
Two permanent auditors and two alternate auditors Two permanent auditors and two alternate auditors
shall be elected from the most voted slate in the shall be elected from the most voted slate in the
order in which they are listed in the slate sections. order in which they are listed in the slate sections.
The other permanent auditor and alternate auditor The other permanent auditor and alternate auditor
are elected as per applicable regulations and are elected as per applicable regulations and
pursuant to article 19 of the bylaws on election of pursuant to article 19 of the bylaws on election of
directors from minority slates, which will apply to directors from minority slates, which will apply to
both sections of the other slates. both sections of the other slates.
The chairman of the statutory board is elected by 30.7. The chairman of the statutory board is elected
the shareholders among the statutory auditors by the shareholders among the statutory auditors
chosen from the minority slate; in the event of a chosen from the minority slate; in the event of a
replacement, replacement,
the the
alternate alternate
auditor auditor
shall shall
be be
appointed as chairman according to appointed as chairman according to
the same the same
procedure. procedure.
Article 31
Current text Text highlighting the proposed changes
The statutory auditors are appointed for a term of 31.1. The statutory auditors are appointed for a
three financial years, expiring on the date of the term of three financial years, expiring on the date of
shareholders' meeting convened to approve the the shareholders' meeting convened to approve the
financial statements for the third financial year of financial statements for the third financial year of
their term, and may be reappointed. their term, and may be reappointed.
The slate voting system applies only in the event of 31.2. The slate voting system applies only in the
replacement of the whole board of statutory event of replacement of the whole board of
auditors. statutory auditors.
In case of replacement of one of the auditors from 31.3. In case of replacement of one of the auditors
the most voted slate, the first alternate auditor from the most voted slate, the first alternate
from such slate is appointed. If the resulting auditor from such slate is appointed. If the resulting
statutory board is not compliant with the applicable statutory board is not compliant with the applicable

laws on equal access, the second alternate auditors

laws on equal access, the second alternate auditors

from that same slate is elected. If it becomes
necessary to replace the other auditor from the
most voted slate, the first alternate auditor from
the same slate is appointed.
from that same slate is elected. If it becomes
necessary to replace the other auditor from the
most voted slate, the first alternate auditor from
the same slate is appointed.
31.4. Board of auditors' meetings may be held by
audio or video conference, provided that each of the
attendees can be identified by all the others, and is
able to take part in the discussion on the items in
real time, and to receive, transmit and review
documents.
If all the foregoing conditions are met, the meeting
shall be deemed to have been held at the place
where the person chairing the meeting is physically
present.
Article 32
Current text Text highlighting the proposed changes
The independent auditors of
the Company are
32.1. The independent auditors of the Company are
appointed by the shareholders' general meeting, in
compliance with applicable laws.
appointed by the shareholders' general meeting, in
compliance with applicable laws.
Article 33
Current text Text highlighting the proposed changes
The Company's financial year shall be from 1 33.1. The Company's financial year shall be from 1
January to 31 December of each year. At the end of January to 31 December of each year. At the end of
each financial year the board of directors, in
accordance
with
the
law,
shall
prepare
the
each financial year the board of directors, in
accordance
with
the
law,
shall
prepare
the
Company's financial statements to be submitted to Company's financial statements to be submitted to
the shareholders for approval. the shareholders for approval.
The board of directors may distribute advances on 33.2.
The
board
of
directors
may
distribute
dividends to shareholders during the course of the advances on dividends to shareholders during the
financial year. course of the financial year.
Article 34
Current text Text highlighting the proposed changes
The net profits shall be distributed as follows: 34.1. The net profits shall be distributed as follows:
a)
5% (five per cent) to be set aside to the legal
a)
5% (five per cent) to be set aside to the legal
reserve until its amount reaches one fifth of the reserve until its amount reaches one fifth of
share capital; or, if the balance of the legal the share capital; or, if the balance of the legal
reserve falls below such amount, until such reserve falls below such amount, until such
balance is brought back to one fifth of the share
capital;
balance is brought back to one fifth of the
share capital;
b)
the
residual
amount
is
available
to
the
b)
the
residual
amount
is
available
to
the
shareholders for distribution as dividends to shareholders for distribution as dividends to
shareholders or for other purposes. shareholders or for other purposes.
Article 35
Current text Text highlighting the proposed changes
Any dividends that are not collected within five 35.1. Any dividends that are not collected within five
years of the date on which they become payable years of the date on which they become payable
shall be deemed forfeited and revert to the shall be deemed forfeited and revert to the
Company. Company.
Article 36
Current text Text highlighting the proposed changes
In case of winding up of the Company, the
shareholders'
meeting
shall
determine
the
applicable liquidation procedures, appoint one or
more liquidators, and establish their powers and
remuneration.
36.1. In case of winding up of the Company, the
shareholders'
meeting
shall
determine
the
applicable liquidation procedures, appoint one or
more liquidators, and establish their powers and
remuneration.
Article 37
Current text Text highlighting the proposed changes
All matters not expressly regulated herein shall be
governed by the relevant provisions of the Italian
Civil Code and all applicable special laws.
37.1. All matters not expressly regulated herein
shall be governed by the relevant provisions of the
Italian Civil Code and all applicable special laws.
Article 38
Current text Text highlighting the proposed changes
The provisions on balance between genders shall 38.1. The provisions on balance between genders

* * * * *

Please note that, if accepted, the draft amendments do not entitle those Shareholders who do not approve them to withdraw, as these amendments do not fall within the cases that entitle to withdrawal under Article 2437 of the Italian Civil Code.

* * * * *

Therefore, we submit the following draft resolution for your approval:

"The Extraordinary Shareholders' Meeting of FINCANTIERI S.p.A., having examined the report by the Board of Directors,

resolves

  • to amend Articles 16, 17, 19, 20, 21, 22, 24, 27 and 31 of the By-laws and to number the articles' paragraphs in the By-laws, as indicated in the right column of the comparative table in the Company's Explanatory Report under Article 72 of Consob Regulation No. 11971 of 14 May 1999;
  • to delegate the Chairman of the Board of Directors and the Chief Executive Officer, jointly and severally and with the power to sub-delegate, to carry out all obligations and formalities related to this resolution and to make any changes, additions and/or deletions that may be required for the registration in Companies Register, including those resulting from the simultaneous approval by the Meeting of the draft amendments to article 19 of the By-laws, referred to in the first item on the extraordinary agenda proposed by the Shareholder Fintecna S.p.A.".

Rome, 31 March 2016

The Chairman of the Board of Directors

Vincenzo Petrone

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