IBERSOL | Annual Report 2020

CORPORATE GOVERNANCE REPORT 6.2. The Board of Directors (or the Executive Committee if within the scope of its delegated powers) - can approve a Transaction with Related Parties if: (i) the report issued by the Administrative Department of the Company confirms that the Transaction in question is a Current Activity Transaction and (ii) the value of the transaction is less than 2.5% of the Company’s con- solidated assets, here being considered all Transactions with the same Re- lated Party entered into during any 12-month period or during the same year, and which have not been subject to the public disclosure obligations foreseen under the terms of this Procedure in Point 7 below; 6.3. If the Board of Directors (or Executive Committee) approves the Trans- action with the Related Party pursuant to point 6.2. above, it must immedi- ately inform the Audit Committee of this resolution, pursuant to points 4.1. and 4.2. supra; 6.4. The prior opinion of the Audit Committee to be issued within a period not exceeding 10 working days, which may be greater or lesser, depend- ing on the complexity of the analysis and / or the urgency that may prove relevant - followed by a decision by the Board of Directors, will be neces- sary for approval of Related Party Transactions included or exempted under Point 5 above, that: a) They are not Current Activity Transactions; or b) Are equal to or exceed 2.5% of the Company’s consolidated assets. 5 6.5. Related Parties or their representatives may not be involved in the pro- cess of approving Related Party Transactions to which they are an inter- ested party. 7. PUBLIC DISCLOSURE OF RELATED PARTY TRANSACTIONS 7.1. The Board of Directors must ensure that the Company publicly discloses, at the latest until the moment when they are carried out, all Transactions with Related Parties that: (i) are not Current Activity Transactions and (ii) are car- ried out for an amount ( isolated or in conjunction with other Transactions carried out with the same Related Party in the previous 12 months and which have not been publicly disclosed under the terms of this Procedure) - equal to or greater than 2.5% of the Company’s Consolidated Assets. 5. If applicable, this amount must be aggregated with that of other transactions carried out between the same Related Party and the Company in the last 12 months that have not been publicly disclosed pursuant to paragraph 7.1. 294