2007 - April
2007 - April
2007 - April
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3.0<br />
Information on the company’s activities<br />
3.6.3. Legal risks<br />
The legal policy, notably in terms of corporate law, stock<br />
markets, tax optimization and monitoring, is overseen by the<br />
APRIL GROUP Legal Affairs and Risk Division.<br />
The legal developments impacting our business are specifically<br />
tracked by companies’ operational legal departments.<br />
In accordance with regulations, the operational activities<br />
of Group companies are covered by a broker civil liability<br />
policy, extended to include banking and financial prospecting<br />
activities. In addition, a specific civil liability policy has been<br />
taken out on franchiser activities.<br />
The legal departments in the various Group companies are<br />
responsible for constantly checking the suitability of coverage<br />
in view of changes in their companies’ activities.<br />
As far as intellectual property-related risks are concerned,<br />
and further to the inventory of brands and internet domain<br />
names drawn up in 2005, further work has been carried out<br />
on registrations and filings both in France and at international<br />
level.<br />
BREAKDOWN OF PROVISIONS<br />
(In thousand euros)<br />
Dec 31st, 2006<br />
Most filings are centralized with service providers that have<br />
been referenced by APRIL GROUP in order to ensure the most<br />
effective protection possible. Administrative follow-up is<br />
centralized by the Group Legal Affairs and Risks Division.<br />
Legal disputes<br />
Provisions have been booked for any significant disputes<br />
based on the best possible estimates in view of the elements<br />
available at the close of accounts.<br />
To the best of the issuer’s knowledge, there are no other<br />
legal disputes that could have a significant impact on the<br />
Group’s financial position, assets, business or results.<br />
Provisions for contingencies and losses<br />
Changes in<br />
scope<br />
Increase Decrease Dec 31st, <strong>2007</strong><br />
Provisions for disputes 3,021 -5 696 -621 3,091<br />
Provisions for pensions 3,996 1,138 518 -125 5,527<br />
Other provisions for contingencies<br />
and losses<br />
8,430 255 2,252 -5,278 5,659<br />
The main actuarial assumptions retained as Group standards<br />
for determining provisions for retirement benefits are as<br />
follows:<br />
Discount rate: 4 %<br />
Rate of increase in salaries: 2%<br />
Rate of inflation: 2%<br />
The reduction in other provisions for contingencies and losses<br />
reflects the relocation processes carried out for several Group<br />
companies. Provisions for disputes primarily correspond to<br />
disputes linked to the operational activities of APRIL GROUP<br />
companies, none of which represent a significant amount on<br />
their own.<br />
3.6.4. Industrial and environmental risks<br />
On account of the nature of its activity (insurance services),<br />
the Group is not concerned by such risks.<br />
3.6.5. Insurance and risk coverage<br />
Specific insurance programs have been put in place for the<br />
needs of APRIL GROUP companies. The types of policies<br />
concerned are as follows:<br />
Civil liability for executives<br />
Broker professional liability,<br />
Franchiser professional liability<br />
Financial guarantee,<br />
Universal IT risks,<br />
Universal office risks<br />
Supplementary health and personal protection.<br />
TOTAL PROVISIONS FOR<br />
CONTINGENCIES AND LOSSES<br />
15,447 1,388 3,466 -6,024 14,277<br />
30<br />
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