annual report grupo security - Banco Security

annual report 2007grupo securitypage 69The committee, whose functions are those set out in clause 50 bis of Law 18,046, met on five occasions during 2007and revised the following matters:• Revision of the report of the independent accountants addressed to the shareholders of Grupo Security and itssubsidiaries as of December 31, 2006.• Proposal of the external auditors and credit-rating agencies to the board.• Revision of the Group’s annual internal audit plan and its principal scope and focus.• Revision of the IFRS implementation plan in Grupo Security.• Periodic revision of operating, technological, compliance and credit risks arising from the integral risk managementimplemented by Grupo Security for each of its companies.• Revision of the principal audit findings in the different areas of business and companies of Grupo Security, andfollow-up of compliance with the commitments assumed for the resolution of auditing comments.• Take note of regulatory changes made by authorities.• Revision of the compensation and incentives system for the managers and senior executives of Grupo Security.• Revision of transactions between related and associate companies of Grupo Security.Regarding this last point, the Directors’ Committee has revised the principal transactions with persons and companiesduring 2007, taking into account that these are mainly advisory services and trading accounts with related companies.The Committee took due note of these transactions and that the related contracts have been agreed at marketprices and that they are generally related to the normal course of business, agreed services and trading accounts.The Committee has also checked that the transactions are not related by ownership to any director or authorizedsignatory, all the above in strict compliance with current legislation. For further information, please see Note 6 to theconsolidated financial statements.P R O P E R T I E S A N D A S S E T S G R U P O S E C U R I T YGrupo Security, as the parent company of subsidiary and associate companies, does not own properties, equipmentor other assets of a similar nature that are important for carrying out its activities and business. Its fixed assets as ofDecember 31, 2007 amounted to Ch$4,407 million.T R A D E M A R K S A N D P A T E N T SGrupo Security is the owner of the “Security” trademark in the class corresponding to the activities of the parent,subsidiaries and associates.