Extract
[...] The communication of irregularities does not take place with a magistrate but with the audit committee of the controlled entity. This plays a very important role due to its independence from the company's management. According to professional standards, the CPA must ensure that the audit committee has been properly informed of any legal text ignorance by the management. The audit committee's skills lead it to work with management representatives (in principle, the general management, the financial management) and the statutory auditors. [...]
[...] de Larosière, The High-level group on financial supervision in the EU, Report February 2009, pt 110 OECD, Corporate Governance and the Financial Crisis: Key Findings and Main Messages, June 2009 Publication of the 2009 report on corporate governance and internal control - Commentary by Jean-François BIARD, Banking and Financial Law Review n° May 2010, comm. 107 The right to evidence may justify a proportionate infringement on banking secrecy, Cass. com. 24-5-2018 n° 17-27.969 Banque populaire Alsace-Lorraine-Champagne P., 04/07/2018 AFFAIRES Contentieux 4. Texts (codified articles and non-codified recommendations) Articles L 823-19 and L 823-20 of the Commercial Code Former article R. 225-29 of the Commercial Code « Recommendations on Corporate Governance AFEP MEDEF Code, Corporate Governance Code of Listed Companies, revised version in June 2013, https://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/atoms/files/22803_code_afep_medef_juin_20131.pdf 5. Jurisprudence Cass. [...]
[...] In this case, the working group recommends entrusting the chairmanship of this board to the person designated as competent and independent. It should be noted that the AMF working group's report is in line with Community guidelines. Thus, Article paragraph point f of Directive 2003/71/EC refers to: "small and medium-sized enterprises (SMEs): companies that, according to their last published annual or consolidated accounts, present at least two of the following three characteristics: an average number of employees of less than 250 people throughout the financial year, a total balance sheet not exceeding EUR 43,000,000 and a net annual turnover not exceeding EUR 50,000,000". [...]
[...] Thus, we will address the key points of the missions entrusted to the audit committee then the regulatory framework governing the action of this committee as well as the identified limits ( [...]
[...] Its main role is to control the reliability and clarity of the financial information provided by the company. While the French regulator seems to have taken full measure of the importance of promoting the independence of audit committees, notably with a quorum of independent directors in the committees, and the nomination of at least one independent member within the committee, many limits still seem to exist, notably the transition to IFRS standards and its impact on audit fees, as well as the upgrading of skills and efficiency of the newly appointed audit committees, whether it is their expertise, their networks and informal relationships within the sector. [...]
