| Miscellaneous | |
| * Asterisks denote mandatory information | |
| Name of Announcer * | THE ISRAEL ELECTRIC CORPORATION LTD. |
| Company Registration No. | 520000472 |
| Announcement submitted on behalf of | THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS |
| Announcement is submitted with respect to * | THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS |
| Announcement is submitted by * | Shai Elmalech |
| Designation * | Adv. |
| Date & Time of Broacast | 24-May-2012 21:16:12 |
| Announcement No. | 00153 |
| Price Sensitivity | No |
| >> Announcement Details | |
| The details of the announcement start here ... |
| Announcement Title * | Immediate report |
| Description | The Company's Board of Directors, in its meeting on May 24, 2012, reached the following decision, which does not require the approval of the general meeting on the decision date: Increase the minimum required number of directors in the Board of Directors, who have accounting and financial qualifications, to five directors at any given time. The reasons for the decision are: In the opinion of the Board of Directors, defining a minimum number of five directors who have accounting and financial qualifications will enable the Board of Directors to execute its duties in accordance with the law and the Company's incorporation documents, especially regarding the performance of its duty to review the financial condition of the Company and its responsibility for preparing and approving the financial statements; and will ensure qualitative discussion and audit of financial and accounting issues in the meetings of the Board of Directors and its committees. The decision of the Board of Directors is based on the following considerations: a. Type and complexity of the accounting and financial subjects related to the activity of the Company and to the preparation of its financial statements, in view of the type and volume of its operations, the range of risks to which the Company is exposed and the internal and external audits, including the Internal Audit and the audit of the external auditor, the wide scope of regulation to which the Company is subjected, including the accounting and financial subjects, being a public and a Government company subjected to the supervision of different regulatory parties. b. Especially the existence of the following subjects, which have an increasing weight in the activity of the Company and its financial reporting processes in recent years: - Preparing the financial statements according to a unique hybrid IFRS, customized to the Company and the expected transition to reporting in accordance with the full IFRS requirements. - Treatment and presentation mode of the actuarial liability of the Company. - Applying stricter SOX rules than rules applied by the majority of companies in Israel; and - The structure of the financial debt of the Company. c. Reinforce the principles of corporate rule applied to the directors of the Company in performing their duties and subject them to stricter obligations, along with tightening the rules related to preparing and approving the financial statements in reporting corporations. d. The minimum number of five directors who have accounting and financial qualifications corresponds to the accepted norms in other companies with similar or even higher size, volume of activity and financial and accounting complexity than the Company. |
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