IBERSOL | Integrated Management Report 2022

CORPORATE GOVERNANCE REPORT a)They are carried out within the scope of the current activity of the Com- pany (considering that the Company is a Management Company of Social Participations, subject to the legal regime of Law Decree no. 495/88 of 30 December) or the respective Subsidiary; and b) Are concluded under normal market conditions (not subject to any spe- cial terms and conditions, atypical or that are not normal and current practice in the market) and, with respect to Transactions with Directors, that no special benefits are granted to the director contracting party. Transactions that comply with the requirements of these subparagraphs a) and b) should, for the purposes of this Procedure, be considered “ Current Activity Transactions ”. 3.4. Failure to grant credit to members of the Board of Directors The Company is prohibited from entering into, and the Board of Directors, or the Executive Committee is also prohibited from approving or entering into any Transactions with Directors in which the Company (or a company that is in a controlling or group relationship with the Company) directly or indirectly grant loans or credit to any member of the Board of Directors (including the members of the Executive Committee) or provide guaran- tees for obligations contracted by them, and it is also prohibited to provide advances of remuneration exceeding one month. 4. INTERNAL REGISTRATION AND REVIEW BY THE FISCAL COUNCIL 4.1. All Related Party Transactions must be notified to the Statutory Audit Committee by the Board of Directors, and the Board of Directors must ensure that the Company Secretary keeps a record of all transactions together with all relevant supporting documentation. 4.2. The Board of Directors, or the Executive Committee, must send to the Statutory Audit Committee, at least on a semi-annual basis, a list of Transactions with Related Parties that have been carried out since the last communication, together with supporting documentation and information, namely the elements referred to in points 7.2 a) to d) - this Procedure should start counting from the entry into force of Law 50/2020, of 25 August. 4.3. After receiving the elements referred to in point 4.2, the Audit Committee shall review all documentation and verify that the referred Transactions with 370