The Board of Directors is ultimately responsible for ensuring satisfactory control of risk management, reporting, financial accounting and similar issues as well as that the company's financial reports are produced in accordance with legislation and applicable accounting standards. In order to support the execution of the Board’s supervisory role in audit issues, at the annual general meeting, held 20 May 2010, it was resolved that the Company shall have an Audit Committee. This committee reports to the Board and its decision-making is restricted to specific areas. The audit committee shall consist of up to three members with one board member acting as chairman for the committee.
At the annual general meeting, held 20 May 2010, it was also resolved that the Company shall have an Operational Committee, consisting of up to three members and one board member acting as chairman for the committee. This committee reports to the Board and its decision-making is restricted to specific areas.
The audit committee shall function as the primary communication channel between the board and the Company’s auditors and shall be responsible for the preparation of the board’s work to assure the quality of the Company’s financial reporting. The audit committee has a particular responsibility to review and bring any problems with the internal control of financial reporting to the Board of Directors’ attention. Potential reported shortcomings are followed up by management and the audit committee.
The audit committee shall address any critical accounting issues and review the financial reports issued by the Company. Among other the following issues and reports shall be considered:
– matters of internal control and application of relevant accounting principles and laws.
– discuss any uncertainties in presented values, changes in estimates and appraisals.
– significant events after the reporting period.
– address any established irregularities.
– the Company’s annual report and the interim reports which are prepared four times annually shall be reviewed.
– discuss any other issues than the above that might affect the quality of the Company’s reporting.
The audit committee meets with the Company’s auditors on a continuous basis (at minimum once a year) to keep informed of the direction and extent of the audit. The audit committee and the auditors shall also discuss the coordination between internal control and external audit and the auditors’ views on potential risks to the Company’s quality of reporting.
– The audit committee shall set the guidelines for what other services than audit the Company may procure from the auditors.
– The audit committee shall on an annual basis in connection with the end of the financial year, evaluate the performance by the Company’s auditors. They shall inform the nomination committee of the result of the valuation, to be considered when they nominate auditors for the AGM.
– Assist the nomination committee in the process of nominating auditors and remuneration for the auditors.
– The audit committee shall review the annual and interim reports and make recommendations on these to the Board of Directors.
The role of the operational committee is to make suitable investment recommendations and review the budget and operations in the operating units on a regular basis. These recommendations must at all times be in line with the overall strategy of the Company as decided by the Board of Directors.