ITEM 1. Draft resolution:

Transcription

1 ITEM 1 Adopting of a resolution on the appointment of a registered auditor for the carrying out of the independent financial audit of the Annual Financial Statements of the Company for the year 2017 According to Art. 16 of the Regulation (EU) No 537/2014 of the European Parliament and the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC (the Regulation ) for the appointment of statutory auditors or audit firms by public-interest entities, the audit committee shall submit a recommendation to the supervisory body of the audited entity for the appointment of statutory auditor. According to Art. 16, Par. 3 of the Regulation the recommendation of the audit committee shall be prepared following a selection procedure organised by the audited entity. The recommendation shall be justified and contain at least two choices for the audit engagement and the audit committee shall express a justified preference for one of them. The proposal to the General Meeting of the Shareholders for appointment of registered auditor shall include the recommendation and preference made by the audit committee. If the proposal departs from the preference of the audit committee, the proposal shall justify the reasons for not following the recommendation of the Audit Committee. The commission appointed by CEZ Electro Bulgaria AD (the Company ) for selection of statutory auditor ranked the participants in the selection procedure. In its final report the commission presented the selection criteria and submitted to the Audit Committee the offers for taking a resolution and making a recommendation. By means of in absentio decision dated the Audit Committee of the Company reviewed and accepted the price offers of AFA OOD and PriceWaterhouseCoopers Audit OOD as well as the ranking of the offers by the commission and validated its final report. Based on it, the Audit Committee prepared a recommendation to the Supervisory Board for appointing of statutory auditor of the annual financial statements of the Company for On its meeting held on the Supervisory Board reviewed the recommendation of the Audit Committee and took a resolution to propose to the General Meeting of the Shareholders for registered auditor for the performance of independent financial audit of the Annual Financial Statements of the Company for the year 2017 to be appointed audit firm AFA OOD. Draft resolution: The General Meeting, on the grounds of Art. 221, item 6 of the Law on Commerce and Art. 47, Par. 1, item 8 of the By-Laws of the Company and following the recommendation of the Audit Committee of the Company, appoints the specialized audit firm AFA OOD, Sofia, as the registered auditor for the carrying out of the independent financial audit of the Annual Financial Statements of the Company for the year Appendices: 1. Final Report of the Commission for Selection of Statutory Auditor 2. In-Absentio Minutes of Resolution of the Audit Committee No.31/ Recommendation of the Audit Committee for Appointment of Auditor 4. Minutes No. 57/ of the Supervisory Board of CEZ Electro Bulgaria AD CEZ Electro Bulgaria AD Correspondence address: Sofia 1748, 159 Tsarigradsko Shosse Blvd., phone: ; zaklienta@cez.bg; CEZ GROUP

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