OREANDA-NEWS. December 14, 2012. The Latvenergo AS Audit Committee, established to improve corporate governance and to trade the company’s securities on the regulated market, has commenced its activities. The duties of the committee include supervising preparation of the capital company’s financial reports and internal control systems, thereby enhancing corporate transparency.

In preparation for issuing Latvenergo AS notes and as part of the overall development of good corporate governance, an Audit Committee of the company is established. In accordance with the Financial Instrument Market Law, a capital company whose securities are traded on the regulated market is to establish an Audit Committee that supervises preparation of the company’s financial reports and consolidated financial reports and ensures the efficiency of the capital company’s internal control and risk management system, among other tasks.

An essential condition for the establishment of the Audit Committee is professional, comprehensive, and transparent adherence to the member selection process. Therefore, the process of forming the Audit Committee was supervised and handled by the Republic of Latvia Ministry of Economics, which assigned candidate research and selection to a top management personnel selection company, Amrop Baltics, ensuring independent and professional evaluation. The company evaluated more than 20 potential candidates with the appropriate management and professional experience in Latvia as well as the Baltics and Scandinavian countries, with a nomination committee interviewing candidates who had passed the primary selection process. The nomination committee consisted of representatives of the Ministry of Economics and the State Treasury, whereby compliance with the principles of good governance was ensured.

“Development of corporate governance, promoting corporate transparency and trust, is one of the most important strategic goals for the development of Latvenergo AS. High standards of management, which include the operation of the Audit Committee, are a prerequisite for the company’s operations on the securities markets, it shapes the group’s reputation and establishes trust among investors,” notes Latvenergo AS Management Board member Zane Kotane.

Strict requirements were set for the selection of Audit Committee members, in particular, financial audit experience, whereby highly qualified and independent professionals are targeted. As a Baltic-scale company issuing securities, Latvenergo AS values the requirements of the international investor environment and compliance with them. Torben Pedersen, Svens Dinsdorfs, and Inita Hane have been elected as members of the Audit Committee.

Torben Pedersen has international experience, having worked for the international audit company Deloitte, and is familiar with the specifics of the investor environment for large companies. He has also served on the board of the Danish Chamber of Commerce in Lithuania.

Svens Dinsdorfs has been the Financial Director and a board member at Elko Grupa since 2006, successfully issuing Elko notes. He previously worked as the Financial Director of Sirowa Group and was employed at Air Baltic from 1998 to 2004.

Inita Hane is the Financial Director of SIA Prime Holding and was previously a senior manager at SIA Price Waterhouse Coopers. She has also audited Latvenergo AS and is therefore acquainted with the company’s operational principles.