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10 Insider administration

The transparency of the holdings of insiders and the publicity of trading increase trust in the securities markets. An effective ad- ministration of insider matters in a listed company requires that the administration is systematically and reliably organised.

Recommendation 52

Compliance with the Guidelines for Insiders issued by Helsinki Exchanges

The company shall comply with the Guidelines for Insiders issued by the Helsinki Exchanges and describe its essential insider administration procedures.

Compliance with the Guidelines for Insiders issued for listed companies by the Helsinki Exchanges harmonizes and improves the administration of companies’ insider matters. The informa- tion on the insider administration procedures permits the share- holders to evaluate the insider administration of the company.


11 External audit

The external auditor has an important role as a controlling body appointed by the shareholders. The external audits give shareholders an independent opinion of how the accounting, financial statements and administration of the company have been arranged.

Recommendation 53 Notification of prospective external auditors

A proposal for the election of external auditor prepared by the board or the audit committee shall be disclosed in the invitation to the general meeting. If the prospec- tive auditor has not been notified to the board, the candidacy shall be disclosed separately.

Since the election of the auditor is one of the most important decisions of the general meeting, the shareholders must be notified of the appointee in a timely manner before the meeting. The preparation for the election of the external auditor can be delegated to the audit committee.

Recommendation 54 External auditor’s fees; fees for non-audit services

The company shall report the fees of the external audi- tor during the financial year. If the external auditor has been paid fees for non-audit services, such fees shall be reported separately.

The information on the fees of the external auditor permits the shareholders to evaluate the activities of the auditor. Since the external auditor controls the company on behalf of the share- holders, the shareholders must be given information also on fees paid to the external auditor for non-audit services.

Companies belonging to the same group as the firm of external auditors, other companies belonging to the same chain of companies as well as companies controlled by the external auditor are equated with external auditors.

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