110
I LISI FINANCIALREPORT2013
INFORMATIONREGARDINGTHECOMPANYANDCORPORATEGOVERNANCE
7
2.3
|
THEAUDITCOMMITTEE
2.3.1Composition
TheAudit Committee is comprised of at least 3members and atmost
5 members, the majority of whom cannot be corporate officers. The
members of this Committee are Messrs. Eric André (independent
director),CyrilleViellardandChristianPeugeot.TheCommittee ischaired
byMr.EricAndré.
2.3.2Tasks
ThemaintasksoftheAuditCommitteeare:
- Reviewingthe financialstatements:
n
Reviewing the financial statements andensuring that theaccounting
methodsused toestablish the company’s consolidated financial and
corporatestatementsarerelevantandpermanent;
n
monitoringtheelaborationof financial information;
n
monitoring the effectiveness of the internal management and risk
managementsystems.
- Relationship between the Audit Committee and the statutory
auditors
In accordance with regulations, the auditors must submit to the
Committee:
• Theiroverallworkprogramandtherandomsurveystheyhavecarried
out;
n
The changes which they consider should be made to accounts or
accounting documents and their comments on the assessment
methodsused;
n
Any irregularitiesor inaccuraciestheyhavediscovered;
n
Theconclusionsresultingfromtheobservationsandcorrectionsmade
totheresults fortheperiodcomparedtothepreviousperiod.
- Monitoringoftheauditors' rulesof independenceandobjectivity:
TheCommitteemustmonitortheprocedureforselectingtheauditors
and submit to the Board of Directors a recommendation regarding
theauditorssuggested forappointmentby theGeneralMeeting.The
Committeeproposes theselectionprocedure to theBoard, including
whether it isnecessary to resort toa tender. It supervises theappeal
for tendersandapproves thespecificationsmanualand theselection
ofthebidders,ensuringtheselectionofthebestbidderratherthanof
the lowesttenderer.
2.3.3Operatingprocedures
TheCommitteemeetsprior to theBoardofDirectors’meetings thatare
heldtosetouttheannualorhalf-yearly financialstatements.
TheAuditorsare invitedtotakepart inthispreparatorymeeting.
The Audit Committee’s examination of the financial statements must
beaccompaniedbyanote from theAuditorshighlighting thekeypoints
not onlyof the results, but alsoof theaccountingmethods selected, as
wellasanote from thecompanydescribing itsexposure to risksandany
significantoff-balancesheetcommitments.
TheCommitteemet twice in 2013. It heard theAuditors report on the
performanceof their task andwas informedby the company’s Internal
Control Manager. Information relating to the consolidation perimeter
and to the off-balance sheet risks described in the appendix to the
consolidated financial statements was sent to the Audit Committee,
whichsubmittedareporton itsworktotheBoardofDirectors.
2.4
|
THECOMPENSATIONCOMMITTEE
2.4.1Composition
TheCompensationCommittee is comprisedof at least 3members and
atmost 5members, themajorityofwhomcannotbecorporateofficers.
Members of thisCommitteeareMs. LiseNobre (independent director),
Messrs. Thierry Peugeot andPatrickDaher (independent director). The
Committee ischairedbyMrs.LiseNobre.
Memberswhoarecorporateofficersdonottakepartinthevotewhenthe
Committeedeliberates on their own compensationor on any incentive
systems fromwhichtheymaybenefit.
2.4.2Tasks
TheCompensationCommittee is inchargeof:
n
Submitting thegeneral rulesof compensation to theBoard'sapproval
(fixed salaries and variable bonuses of all types) and checking the
annualapplicationoftheserules for:
a)ThemembersoftheGeneralManagementofLISIS.A. (Chairmanof
theBoardofDirectors,CEOandVicePresidents);
b)TheCEOsofthedivisionsofLISIS.A. ;
