Good corporate governance is characterised by responsible interaction between the owners, the Board of Directors and its management, viewed in both a short and longer term, value creation perspective.

Shareholders, employees, customers, suppliers, lenders, public authorities and society in general should be able to trust that a business is being run properly and that governing bodies are sufficiently independent in order to perform their functions.

Corporate governance deals with issues and principles related to the distribution of roles between the governing bodies of a company and the responsibility and authority assigned to each of those bodies.

Proper attention must be given to the various roles and function of a Board of Directors to both foster proper controls, but at the same time encourage the business to assume risks and manage risks by encouraging innovation and entrepreneurship; all with the aim to enhance shareholder values.

Proper attention must also be given to the characteristics of the Company participating in the global shipping community where speed of decision making and in execution over time has been a core competitive advantage. This document outlines key principles and guidelines for the governance of I.M. Skaugen.

These principles and guidelines are approved by the Board of Directors and are to be reviewed annually or more often if deemed necessary.