Econocom - 2019 Universal registration document

02 group overview

corporate governance

reviewing decisions taken at such times and, where appropriate, making its own recommendations; enquiring about the systems in place ▶ within the Company and its subsidiaries to ensure compliance with the main legal and regulatory requirements applicable to them; Internal Audit 3. reviewing and making recommendations ▶ on the proposals by the Executive Committee relating to the appointment or replacement of the head of Internal Audit as well as the annual budget allocated for its operation; taking note of the work programme of ▶ the head of Internal Audit and his reports; reviewing the effectiveness of the ▶ Internal Audit function, chiefly by analysing how management applies the findings and recommendations of Internal Audit; External Audit 4. formulating recommendations to the ▶ Board of Directors as to the appointment of the Company’s Statutory Auditor of the renewal of his term of office, the amount of his compensation and any mention of his ▶ independence, chiefly in light of the provisions set forth in the new Belgian Companies Code and the Royal Decree of 4 ژ April 2003; identifying the Statutory Auditor’s ▶ work programme and reports; periodically reviewing the ▶ effectiveness of the External Audit process and analysing how the Executive Committee follows up on any recommendations made by the Statutory Auditor; mission; ensuring Statutory Auditor

The Chairman of the Audit Committee is appointed by the Board of Directors. The Chairman of the Board of Directors cannot chair the Audit Committee. The term of office of a member of the Audit Committee ends at the same time as his term of office as Director. At 31 ژ December 2019, the Audit Committee consisted of Rafi Kouyoumdjian, Gaspard Dürrleman and Marie-Christine Levet. The Committee is chaired by Gaspard ژ Dürrleman. Role of the Audit Committee 5.1.2.2.3. The Audit Committee is responsible for the tasks described below: Financial reporting 1 monitoring the process of preparing ▶ financial information and ensuring its reliability, i.e. , the accuracy, completeness and consistency of the financial statements; discussing any material financial ▶ reporting issues with the members of the Executive Committee and with the Statutory Auditor. In particular, the Executive Committee informs the Audit Committee of the methods used to account for material and unusual transactions when several possible approaches exist, and of the existence and justification of activities carried out through special purpose vehicles; Internal control – risk management 2 understanding the risk management ▶ and control systems established by Econocom’s management, assessing whether the systems are appropriate and, where applicable, making recommendations to mitigate any material risks; ▶ investigations undertaken within the Company in response to alleged fraud or errors, or for any other reason: reviewing the results of any

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2019 annual report