Annual Report - EDP

: corporate governance :III.18. Rotation of theexternal auditorIn March 2012, the General and SupervisoryBoard understood that, given the rigorousevaluation of independence and quality of workperformed by KPMG, conducted by FinancialMatters Committee/Audit Committee, as wellas the consideration of the conditions ofindependence of the statutory auditor and theexternal auditor and the benefits and costsassociated with its replacement, the maintenanceof KPMG showed itself founded in terms ofsafeguarding the interest of the EDP and itsshareholders, without prejudice to the eventualrealization during the triennium 2012-2014,an invitation tender for the provision of auditservices external, in line with recommendationIII.1.3. of 2010 CMVM Regulation.The Directive No. 2006/43/EC, transposedinto national law by Decree-Law No. 224/2008has established the need for rotation of thepartner responsible for the orientation or directimplementation of the statutory accounts at the endof seven years from the date of its appointment.In this context, at the General Meeting held onApril 17, 2012, KPMG, represented by Vítor Manuelda Cunha Ribeirinho, was elected the statutoryauditor to exercise functions on the 2012-2014triennium, adopting, recommendation III.1.3. ofCMVM Regulation.In parallel, and regarding the rotation of theExternal Auditor, KMPG remains as the externalAuditor of EDP, having Vítor Manuel da CunaRibeirinho as “partner” in charge of KPMG’s auditreplacing Jean-éric Gaign as partner responsiblefor guidance and direct execution on statutory auditof the EDP group, which represents the adoption ofthe recommendation III.1.3. of CMVM Regulation.However, during the year 2012, the General andSupervisory Board has delegated the FinancialMatters Committee/Audit Committee monitorthis issue and the Commission has presented aproposal to maintain the current statutory auditorand the external auditor by the end of 2013, whichwill allow the General and Supervisory Boardcurrently in office obtain a deeper understandingof their business, performance and independence.Simultaneously will allow the General andSupervisory Board that will be elected for thetriennium 2015-2017 period to have a broaderrelationship with the statutory auditor and theexternal auditor that will be elected/hired to theperiod 2014-2016, with no need for renewal orrealization of any tender, when the start of theirfunctions.146A World Full Of Energy