The name ‘Yara’ represents a good harvest and a good year

Yara's financial compliance

Yara faced several unique challenges after it was spun off from Norsk Hydro and established as a separate company on March 25, 2004. It benefited from already having been part of a professional system at Hydro, with high standards of corporate governance. Yara nonetheless had to set up its own practices to ensure compliance with a wide variety of industry and financial standards.

Yara’s compliance practices also needed to be specifically adapted to its new role as the world's largest and most global fertilizer company. Yara began complying with the Norwegian Code of Practice for Corporate Governance, for example, in 2005.

This code (published December 7, 2004) includes requirements in addition to those mandated by law. Following are the main features of that practice:

Scope of business

The scope of Yara's business is defined in its Articles of Association and presented in the Report of the Board of Directors, along with the company’s goals and strategies.

Yara is listed on the Oslo Stock Exchange and is subject to Norwegian securities legislation. The reporting follows the standards of Norwegian GAAP for 2004, but has followed the new international standards IFRS since 2005.

Equity level

Yara has an equity level adapted to the goals, strategy and risk of the company. The dividend policy should enable a predictable payout over the years.

New equity capital will only be sought when defined opportunities arise. The board is authorized to buy back up to 5 percent of the company's shares.

Read more about Yara's share buy-back program.

Shareholder rights

All Yara shareholders have equal rights, and there is only one class of shares. There are no restrictions on the purchase or sale of shares.

Communication with the market

Communication with the financial market is based on principles of openness and equal treatment of all shareholders.

Yara's web site contains an updated financial calendar and a large amount of other investor-related information. In 2004 Yara was awarded the Information and English certificate of the Oslo Stock Exchange testifying that Yara complies with a set of information requirements beyond a defined minimum standard.

Yara's board receives regular updates from management as to how the company is perceived by the financial market. The perception at the end of 2008 was positive, with Yara scoring highest in a survey of how 10 large Norwegian companies communicated financial information.

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