Annual Report - EDP

: corporate governance :STATEMENT OF COMPLIANCERecommendationAdoptionStatusCommentsDescriptionin the ReportIII.1.3 The companies shall promote the rotation of the auditor at the end of two or three terms,according to them being of four or three years respectively. Their maintenance after this periodshall be reasoned in a specific opinion from the supervisory body which consider expressly theconditions of the auditor’s independence and the advantages and costs of his/her substitution.AdoptedIII.18.III.1.4 The external auditor shall, within its competencies, verify the application of remunerationpolicies and systems, the efficiency and the functioning of internal control mechanisms andreport any deficiencies to the company’s supervisory body.AdoptedIII.17.III.1.5 The company shall not give to the external auditor, or any other entities in a relationof participation with that auditor or that are part of the same network, any services other thanauditing. If the engagement of such services is required – which must be approved by thesupervisory body and explained in its annual report on Corporate Governance – they shouldnot account for more than 30% of the total value of services provided to the company.AdoptedIII.17.IV. CONFLICTS OF INTERESTIV.1 RELATIONS WITH SHAREHOLDERSIV.1. The company’s businesses with shareholders with a qualified stake, or with entities withany relation with those shareholders shall be performed in normal market conditions,as set forth in article 20th of the Securities Code.IV.1.2. The business of significant relevance with shareholders of a qualified stake, or withentities with any relation to those shareholders, shall be submitted to prior opinion of theSupervisory Board, as set forth in article 20th of the Securities Code. This body shall establishthe necessary procedures and criteria for the definition of the relevant level of significanceof these businesses and the further terms of their intervention.AdoptedIII.11.III.12AdoptedIII.11.III.12.III.13.0.3. Overall assessment of the degree of adoptionof the recommendations of the Corporate Governance CodeEDP adopts all the recommendations contained in the aforementioned “Corporate Governance Code” that apply to it, except for RecommendationsI.3.3 and I.6.1 of such code, which are not adopted for the reasons given in section 0.2.EDP suggests consulting the “EDP Corporate Governance Manual”(“Corporate Governance Manual”) for a broader reflection on therecommendations contained in the “Corporate Governance Code”. This manual is available to shareholders and the general public at the EDPwebsite (www.edp.pt).0.4. Divergence from the recommendations of the CMVM CorporateGovernance CodeThe explanation of the CMVM recommendations that are not adopted with or that EDP considers do not apply to it, the reasons for those positionsand other relevant observations, as well as an indication of the section of this report where the description can be found, are listed in the tableof section 0.2.94A World Full Of Energy