Rules for the change of the auditor of financial reports
Appointment and replacement of the Company’s auditor is the responsibility of the Company’s Board of Directors which receives and acts on recommendations received from the Audit Committee. The Company has an Audit Committee whose responsibilities include among others evaluation of, and recommendations for the replacement of external auditors of the Company, including ensuring the fulfillment of related disclosure requirements.
As a company regulated by Canadian law, the Company is bound by the legal requirements of National Instrument 51-102, Continuous Disclosure Obligations, which regulate among others the rules of disclosure of information on replacement of the auditor by the Company.
Apart from those rules, the Company does not have any other rules for the replacement of its auditor.
It should be noted that it is not the practice in Canada for companies with shares listed on public stock exchanges to change external auditors every five to seven years; auditors of public companies in Canada are required by the Canadian Institute of Chartered Accountant’s independence requirements to rotate the audit partner responsible for each engagement every five years.