MECHANISMS TO PREVENT AND SOLVE CONFLICTS OF INTEREST
The directors should attempt to identify and avoid situations involving conflicts of interest wherever possible.
In case of a conflict that could not have been prevented, because of the inevitability of such due to its circumstances, the director or directors affected must immediately communicate the conflict to the Board of Directors, who will resolve it.
Directors affected by a conflict of interest must abstain from voting within the Company Board, committee, or meeting with which they are involved, except in such cases as permitted by law.
Conflicts of interest emanating from transactions with related parties must be in strict compliance with Law 18.046 of Public Corporations, pertinent to Title XVI.
Conflicts of interest must be resolved by the Board of Directors taking into account the following principles:
- In case a conflict of interest arises between one or more Directors and Aguas Metropolitanas, the interest of the latter should always be favored.
- Directors shall adjust their actions to the provisions of the current legislation regarding the stock market that relate to the specific field of activity of the Company, in particular Law 18.045 of the stock market, Law 18.046 on Public Corporations, the Regulations for Public Corporations, and the current regulations issued by the Superintendency.
- Directors must also adjust their actions to the provisions stated on the Manual for Handling Information of Interest to the Market, approved by the Board of Aguas Andinas on March 2010, or whichever is currently in force.