IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 III.8 When the removal of board members is not due to serious breach of their duties nor to their unfitness for the normal exercise of their functions but is yet do on inadequate performance, the company shall be endowed with the adequate and necessary legal instruments so that any damages or compensation, beyond that witch is legally due, is unenforceable. Adopted In such situations the legal rules are applied. IV. AUDITING IV.1 The external auditor shall, within scope of its duties, verify the implementation of remuneration policies and systems of the corporate bodies as well as the efficiency and effectiveness of the internal control mechanisms and report any short comings to the supervisory body of the company. Adopted The external audi- tor reports on the audit work carried out during the year in the annual audit report. Part I, numbers 37 and 38 of this Cor- porate Governan- ce Report. IV.2 The company or any entity with which it maintains a control relationship shall not engage the external auditor or any entity with which it finds itself in a Group relationship or that incorporates the same network, for services other than audit services. If there are reasons for hiring such services - whichmust be approved by the Audit Committee and explained in its Annual Report on Corporate Governance - said should not exceed more than 30% of the total value of services rendered to the company. Adopted Part I Number 46 of this Corporate Governance Re- port. IV.3 Companies shall support auditor rotation after two or three terms whether four or three years, respectively. Its continuance beyond this period must be based on a specific opinion of the Audit Committee that explicitly considers the conditions of auditor’s independence and the benefits and costs of its replacement. Adopted Part I Numbers 44 and 45 of this Cor- porate Governan- ce Report. 191