IBERSOL Annual Report and Consolidated Accounts 2017

Report on Corporate Governance II.2.3 The Audit Committee shall evaluate the external auditor on an annual basis and propose to the competent body its dismissal or termination of the contract as to the provision of their services when there is a valid basis for said dismissal. Adopted Part I Numbers 37.38. and 45. of this Corporate Gov- ernance Report. II.2.4 The Audit Committee shall evaluate the functioning of the internal control systems and risk management and propose adjustments as may be deemed necessary. Adopted Part I Numbers 38, 49, 50, 54 and 55 of this Corporate Governance Re- port. II.2.5 The Audit Committee, the General and the Supervisory Board and the Audit Committee decide on the work plans and resources concerning the internal audit services and services that ensure compliance with the rules applicable to the company (compliance services), and should be recipients of reports made by these services at least when it concerns matters related to accountability, identification or resolution of conflicts of interests and detection of potential illegalities. Adopted Part I Numbers 38, 49, 50, 54 and 55. of this Corporate Governance Re- port. II.3 REMUNERATION SETTINGS II.3.1 All members of Remuneration Committee or equivalent should be independent from the executive board members and include at least one member with knowledge and experience in matters of remuneration policy. Adopted Part I Numbers 67. and 68. of this Corpo- rate Governance Report. II.3.2 Any natural or legal person that provides or as provided services in the past three years, to any structure under the board of directors, the board of directors of the company itself or who as a current relationship with the company or consultant of the company, shall not be hired to assist the Remuneration Committee in the performance of their duties. This recommendation also applies to any natural or legal person that is related by employment contract or provision of services with the above. Adopted Part I Number 67. of this Corporate Gov- ernance Report. 188