Articles of Association for Sparebank 1 SR-Bank

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Articles of Association for Sparebank 1 SR-Bank Articles of Association for SpareBank 1 SR-Bank CHAPTER 1 CORPORATE NAME, REGISTERED OFFICE, OBJECTS Article 1-1 SpareBank 1 SR-Bank was established on 1 October 1976 through the merger of 22 savings banks. As of October 2006 the organisation consists of a total of 39 banks. The head office of SpareBank 1 SR-Bank is located in the City of Stavanger, and there are branch offices in the following municipalities: Bergen, Bjerkreim, Bokn, Eigersund, Farsund, Finnøy, Flekkefjord, Forsand, Gjesdal, Grimstad, Haugesund, Hjelmeland, Hå, Karmøy, Klepp, Kristiansand, Kvitsøy, Lund, Lyngdal, Mandal, Randaberg, Rennesøy, Sandnes, Sauda, Sirdal, Sokndal, Sola, Stavanger, Strand, Suldal, Søgne, Time, Tysvær and Vindafjord. The objects of the Savings Bank is to promote savings by receiving deposits from an unspecified group of depositors; to provide services to the public, business community and public sector; and to manage the funds controlled by the bank in a prudent manner in accordance with the statutory rules applicable to savings banks at any given time. Furthermore, the savings bank can provide investments services within the terms of the concessions granted at any time. The savings bank can perform all normal banking transactions and banking services in accordance with current legislation. Neither the promoters nor others are entitled to a dividend from the operations over and above any dividends from primary capital certificates. CHAPTER 2 PRIMARY CAPITAL Article 2-1 The primary capital of the Savings Bank totals NOK 1 865 962 675 and is divided into 74 638 507 primary capital certificates of NOK 25 each, which are fully paid up. The bank shall be notified of all primary capital certificate acquisitions within one month. 1 The acquisition of primary capital certificates (by purchase, gift, etc.) is conditional on the consent of the bank's Board. The acquisition of primary capital certificates may only be refused on objective grounds. Written grounds for refusal to grant consent may be demanded. Holders of primary capital certificates shall be entitled to vote when the acquisition has been registered with the Norwegian Central Securities Depository. CHAPTER 3 SUPERVISORY BOARD Article 3-1 The Savings Bank's Supervisory Board shall ensure that the bank pursues its objects in accordance with the law, Articles of Association and Supervisory Board resolutions. The Supervisory Board shall consist of 40 members and 22 deputy members. - Ten members and five deputies shall be elected by the depositors, cf. Article 3-2. - Four members and four deputies shall be elected by the county councils of Rogaland, Hordaland, Aust- Agder og Vest-Agder as is stated in Article 3-3. - Sixteen members and eight deputies shall be elected by the primary capital certificate holders, cf. Article 3-4. - Ten members and five deputies shall be elected by the employees pursuant to Regulation no. 9386 of 23 December 1977. The members of the Supervisory Board shall be elected for a term of four years. The deputies elected by the depositors shall be elected for a term of one year. The deputies elected by the employees shall be elected for a term of two years. The deputies elected by the county councils and primary capital certificate holders shall be elected for a term of four years. Article 3-2 Election to the Supervisory Board by customers Each year depositors who have and have had a deposit of at least NOK 500 in the bank for the last six months shall elect two or three members, respectively, and five deputies, in accordance with the following distribution and in the following election districts: Number of Number of Election district members deputies Rogaland 7 3 Agder 2 1 Hordaland 1 1 2 Of the members elected by the depositors in the first election, at least one-fourth shall retire through the drawing of lots each year for the first three years, and thereafter those who have served the longest shall retire. The drawing of lots shall be performed for the Supervisory Board by the Nomination Committee. Only a person of age, as a personal depositor or as a representative for another depositor, may vote in the election. No one may cast more than two votes, one for their own deposits and one as a representative for another depositor. The election of members and deputies by the depositors shall take place on election days in accordance with rules stipulated pursuant to Section 8a, fifth paragraph of the Savings Banks Act. Article 3-3 Election to the Supervisory Board by the county councils Four members and four deputies shall be elected by the County Councils of Rogaland, Hordaland, Aust-Agder and Vest-Agder in accordance with the following distribution: Members Deputy members Rogaland 2 2 Hordaland 1 1 Aust-Agder and Vest-Agder* 1 1 * For Aust-Agder and Vest-Agder a member and deputy are elected every other time by the county councils of Aust-Agder and Vest-Agder. Article 3-4 Election to the Supervisory Board by the primary capital certificate holders The election of members and deputies by the primary capital certificate holders shall take place in accordance with the regulations of 7 December 2001 relating to primary capital certificates in savings banks, credit associations and mutual insurance companies. The primary capital certificate holders wishing to participate in the election in accordance with Article 3-1 shall notify the bank to this effect by the specific deadline stated in the notice, which shall not expire more than three days prior to the election date. Failure on the part of the certificate holder to notify the bank by the deadline may result in him/her being refused participation in the election. An announcement of the primary capital certificate holders' election shall be made in the newspapers, Stavanger Aftenblad, Fædrelandsvennen and Aftenposten. CHAPTER 4 CONTROL COMMITTEE Article 4-1 Every other year the Supervisory Board shall elect a Control Committee consisting of five members and two deputies. 3 At least one member and one deputy shall be elected from among the members of the Supervisory Board. One of the Control Committee members shall meet the requirements that apply to judges pursuant to Section 54, second paragraph of Act no. 5 of 13 August 1915 relating to the Courts of Law. The Supervisory Board shall elect the chair and deputy chair in separate elections. The Control Committee shall supervise the Savings Bank's operations in accordance with Section 13 of the Savings Banks Act and directives laid down by the Supervisory Board and approved by the Financial Supervisory Authority of Norway. CHAPTER 5 THE BOARD OF DIRECTORS Article 5-1 Composition of the Board of Directors The Board of Directors shall consist of six to eight elected members. The Supervisory Board shall elect the chair and deputy chair in separate elections. Three deputies shall be elected for members elected by the Supervisory Board. One deputy shall attend meetings permanently and have the right to speak. One member and two deputies shall be elected from among the employees. One of the deputies shall have the right to attend and speak at meetings. Only members of the Supervisory Board who have been elected by the employees have the right to make nominations for the employees' board member and deputies. All members shall be elected for a period of two years and all deputies for one year. Members and deputies may be re-elected, cf. however, Section 10.1. Article 5-2 Notice of meetings, resolutions and minutes The Board Chairman shall convene meetings of the Board of Directors as frequently as dictated by the operations of the Savings Bank or when requested by a board member. The Board of Directors has a quorum when more than half of the members are present. In order for a resolution to be valid, the majority of those present must vote in favour of it. The Board Chairman or member chairing the meeting shall have the casting vote in the event of a tie. The minutes of meetings of the Board of Directors shall be signed by those in attendance, who will share a common liability, unless some of them have recorded their protest in the minutes. Board members who are not present shall familiarise themselves with resolutions passed in their absence. 4 Article 5-3 Responsibilities and duties of the Board of Directors The Board of Directors shall manage the operations of the Savings Bank in accordance with the law, Articles of Association and further regulations issued by the Supervisory Board. The Board of Directors is responsible for safe and prudent management of all the funds controlled by the Savings Bank. The Board of Directors shall ensure that the operations of the Savings Bank are properly organised, and they are responsible for ensuring that the accounting and management of assets is subject to satisfactory control. The Board of Directors shall lay down the Savings Bank's regulations for granting loans and any other authorisations required for the bank's operations. It shall be evident from these regulations to what extent anyone other than the Board of Directors may grant loans, guarantees and discount commercial papers. The Board of Directors shall ensure that the bank has good internal control of fulfilment of the provisions that apply to the operations, including the bank's basic values and ethical guidelines. The Board Chairman or the Managing Director, or two of the Board of Directors' other members jointly, may represent the Savings Bank and bind the Savings Bank by their signatures. The Board of Directors may confer powers of procuration or special powers of attorney. The Board of Directors shall lay down directives for the Managing Director with special emphasis on tasks and responsibilities.
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