HAREL MALLAC & CO. LTD. is committed to the highest standard of business integrity, transparency and professionalism in all its activities to ensure that the activities within the Company and the Group are managed ethically and responsibly to enhance business value for all stakeholders. The Company is fully committed to the best principles of corporate governance.

Corporate Governance Committee
Its terms of reference include the key areas that are the remit of a nomination and remuneration committee. Its main responsibilities include establishing a formal and transparent procedure for developing policy on executive and senior management remuneration, as well as determining specific remuneration packages for executive directors of the Company. This Committee also fixes the fees of the Company’s non-executive and independent nonexecutive directors. In addition it monitors the balance and effectiveness of the Board and approves the nomination and remuneration of the Company’s representatives on the Board of subsidiary companies.

Audit Committee
The role and responsibility of the Audit Committee is to assist the Board in discharging its duties relating to the safeguarding of assets, the operation of adequate systems and control processes, and the preparation of accurate financial reports and statements, in compliance with all applicable legal requirements and accounting standards. The Committee also caters for issues within the ambit of a risk-management committee and as such provides a forum for discussing business risks and control issues and for formulating relevant recommendations for consideration by the Board.

Strategic Committee
This Committee monitors the implementation of plans and
policies decided by the Board, gives advice to executives in periods between Board meetings and evaluates strategic plans and budgets proposed by executives for resentation to the Board.