The management of the company is organized according to single layer governance system. (Board of Directors). In the name of the shareholders, the Board of Directors supervises the management of the company’s business operations. The Board acts as the highest body in reaching decisions, with exception of the issues that are under authority of the Assembly of shareholders. The members of the Board of Directors are elected by the Assembly of shareholders. These are individuals who possess high integrity, truly understand the business and protect the interests of shareholders. The mandate of the Board’s members is 4 years without limitation of the right of reelection. The Board of Directors in TOBACCO consists of 4 members, as of which 3 are non-executive and 1 is executive. The executive member of the Board is the Chief Executive Officer (CEO) of the Company. As of non-executive members, 2 are independent. The regular structure of the Board of Directors consists of members that are experts in the area of law, finances and issues specific for the company’s business.

The Board has formed a Committee for finances whereas it has a role to monitor the financial operations of the Company, to execute evaluation of the financial activities, the policies and the strategy, mergers and acquisitions, the financing and the structure of the company’s capital and its associates. For the needs of the Board, the Committee prepares reports and recommendations related to these issues.

The Board has established a Department for internal audit that is acting with independent function and through analyzing and assessment executes evaluation of the adequacy and effectiveness of the systems of internal control, risks management and the performances of the Company. The goal is to support the Board and the management in the effective fulfillment of their obligations by providing them with analysis, assessments, recommendations, advices and information of activities that are under the authority of the internal audit, simultaneously promoting effective control and stable business practice.

In 2010, with collaboration of IFC (International Finance Corporation) the project for implementation of good practices of corporative management was realized, all in accordance with the latest world trends. This project as well as other activities already realized and still to be realized by TOBACCO brings additional values for the current and future investors.