Atari 2010 Annual Report Download - page 175

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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except where such powers are vested by law and the Internal Rules in the Board of directors and the shareholders’
meeting.
At each Board meeting, the chief executive officer reports on current trading and significant corporate developments.
However, the Internal Rules of the Board of directors specify that the Board of directors’ prior authorization is necessary
for the chief executive officer (or the other executive officers) to finalize and effect the following transactions:
• The formation of joint ventures or the acquisition of businesses for more than 750,000 Euros, the
acquisition of equity interests or businesses or the execution of joint-venture agreements whenever the
transaction involves more than 750,000 Euros;
• The sale or transfer of businesses or assets for more than 750,000 Euros, the disposal of any equity
interest or business involving more than 750,000 Euros;
• Mergers or merger plans concerning the Company or, as a general matter, all transactions involving the
transfer or sale of all or almost all of the Company’s assets;
• In the event of litigation, the signing of any agreement or negotiated settlement, or the acceptance of a
negotiated settlement, whenever the amount involved exceeds 750,000 Euros;
• The granting of security interests on the Company’s assets, whenever the secured obligation or the value
of the collateral exceeds 750,000 Euros;
• The signing of any licensing or IP agreement, whenever the amount involved exceeds 1 million Euros.
The Board of Directors approves the annual Budget and the multiannual game publishing plan. The Board of Directors
also approves any material change in the Budget or in the publishing plan during the year.
3. INTERNAL CONTROL
During fiscal year 2009/2010, the Group has been working on relying on the AMF internal control reference framework
and implementing guide for small and mid caps (“Cadre de reference du contrôle interne : Guide de mise en oeuvre pour
les valeurs moyennes et petites”). In October 2009, the Audit Committee, management of the Group and the auditors
met for a working session on Internal Control, first step towards the implementation of the AMF recommendations.
This report on internal control pertains to all of the entities controlled by the Company and consolidated by it.
1. Objectives of the Group’s internal control procedures;
2. Risk assessment procedures implemented by the Group;
3. Responsibility for internal control;
4. Internal control documents;
5. Assessment of the internal control of processes that have an impact on the accuracy of the financial information;
6. Summarized information on internal control procedures implemented by the Group;
7. Principles and rules governing the compensation and benefits of corporate officers.
(1) Objectives of the Group’s internal control procedures
Internal control is a process carried out by the Chief Executive Officer, management and the staff, under the authority of
the Board of Directors, aimed at obtaining reasonable assurances concerning the fulfillment of the following objectives:
• The proper operation of the Company's internal control procedures;
• The performance and effectiveness of operations;
• The consistency of financial transactions;
• Compliance with applicable laws and regulations.
One of the aims of the internal control system is to prevent and control risks to which the business is exposed and risks
of errors and fraud, in particular in the financial and accounting areas. As in the case of other oversight systems, it
cannot provide an absolute guarantee that all of those risks will be eliminated.
(2) Risk assessment procedures implemented by the Group
Internal control is based on risk assessment procedures performed by the management of operating entities and the
Group, in connection with annual review and budgeting processes. A Global Risk Assessment (“GRA”) project has been
initiated, to be completed in FY 2010/2011. The GRA is used to identify, assess and prioritize risk. The GRA conclusions