CABO VERDE Law and Practice Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Júlio Martins Júnior and Manuel Esteves Albuquerque, Raposo Bernardo & Associados
7.2 Requirements for Directors Concerning Management Risk and Internal Controls The law establishes that members of the compa - ny’s management bodies must act with diligence and loyalty, in the interests of society, having taken into account the interests of partners and employees. The duty to act diligently includes, in particular, obtaining the necessary technical capacity and sufficient knowledge of the com - pany’s activities. Therefore, such a duty must be understood as also including the obligation of the company’s management to establish risk management poli - cies and internal control systems in the more general context of promoting the company’s interests and business activity.
transfers of the registered office, and changes to the share capital, among others aspects. In the event of failure to comply with the filing obligations, companies or their officers may be exposed to administrative fines. 7. Audit, Risk and Internal Controls 7.1 Appointment of External Auditors The appointment of an external auditor by the shareholders’ ordinary general meeting becomes mandatory if, at the end of the financial year, the company exceeds at least one of the following thresholds: • turnover exceeding CVE200 million (over GBP1.528 million); and • total net assets exceeding CVE15 million (GBP114,654.19). Auditors are subject to certain requirements regarding their independence, which prohibits them from having any personal, financial or pro - fessional relationships that are incompatible with the functions of an auditor. Companies issuing securities admitted to trad - ing on the stock exchange are also required to have an external auditor.
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