In accordance with the provisions in article 420 of the Companies Code, the Audit Board is competent to exercise supervisory functions of the Company’s business in four critical areas: (i) supervision of corporate activity, (ii) control of the company’s financial information, (iii) monitoring of internal systems of risk management, control and internal audit and (iv) receiving (and dealing with) complaints of irregularities.
According to the law and article 19 of the articles of association, the powers of the Audit Board include: proposing to the General Meeting the appointment of the statutory auditor or company of auditors; appointing or dismissing the company's external auditors; permanently monitoring its activity and that of its subsidiaries; observing the relationship with different governing bodies; as well as giving an opinion on the internal auditing procedures or on issues that are raised about accounting practices followed by the company.
The Audit Board must also ensure the existence of an independent external auditor at Galp Energia, chosen from internationally renowned auditing companies, which should, without prejudice to the powers of the Audit Board and of the Statutory Auditor, check the books and other annual accounting documents of Galp Energia, whereby the Audit Board is the first to receive information from the external auditor.
The Audit Board shall meet at least every quarter and report to the Board of Directors and to the General Meeting on the supervision and checking that has been carried out.
The Audit Board can only meet and deliberate validly in the presence of a majority of its members, and the respective resolutions must be approved by a majority of the votes cast.
The rules on the operation and organisation of the Audit Board are defined in the Regulation of this organ, which can be found here.