Corporate Governance & Ethics



One of the aspects which have allowed our fast and efficient growth has been our good Corporate Governance practices.

ETHICS

Our Ethics and Conduct Code has been designed in adherence to the best practices code of the Mexican Stock Exchange, and it contains the governing policies, guidelines, and principles of personal and professional behavior even if it does not consider every situation. All the staff is bound to behave ethically and lawfully, and they are directly responsible for their actions.

BOARD OF DIRECTORS

The Board of Directors is composed of 11 designated members; six of them form a majority of independent members. The members of the board are experienced in areas such as finance, banking, production, manufacturing, and marketing of consumer products, exporting, promotion of financial and credit services, investment banking, etc.

The Board of Directors is responsible for establishing the general business strategy, monitoring the Company's steering, the performance of the main officers, approving internal control and auditing policies and guidelines, the relations with associated parties, accounting issues, information and communication with investors, and appointment and compensation of the senior management, among other duties. In order to perform its functions, the Board of Directors is supported by four committees: Audit, Corporate Practices, Executive and Credit, Risks and Treasury.

Audit Committee

It is in charge of reviewing and discussing the financial statements with the Company’s relevant areas and of recommending the approval of such to the Board of Directors, policy follow-up, the Company’s corporate procedures and bylaws, identifying any risks and opportunities, proposing the appointment of internationally recognized external auditors, validating the risks taken as per the policies on such matters, among other functions.

Corporate Practices Committee

It is responsible for reviewing and approving the Company’s general salaries and compensation policies; reviewing the profiles for the first two levels in the Company, as well as monitoring the salary and compensation market, reviewing and approving the salary and compensation package for the first and second level senior managers; reviewing and approving the operations with related parties and other significant operations, reviewing and approving the policies for the use of the Company’s patrimonial property by members and senior managers, among other functions. All the members of this committee are independent members.

Executive Committee

It is responsible for monitoring and solving any controversies arising in any other of the Company’s committees, reviewing and approving the annual budget and the general strategies per business, reviewing and approving the monthly and the comparative results versus the annual budget, reviewing and approving investment of over USD $500,000.00 or the equivalent amount in MXN Pesos, reviewing and approving long-term agreements involving amounts of over USD $200,000.00 per year or the equivalent amount in MXN Pesos, among other functions.

Credit, Risks and Treasury Committee

It is responsible for reviewing and monitoring the behavior of the Company’s credit portfolios, formulating and presenting proposals for provisions and reserves per business, establishing the ratio between the credit portfolio terms and the funding, as well as proposing and analyzing the funding procedures, reviewing and approving credit facilities, promoting and presenting operating risk policies for each business area, among other functions.

Audit Committee

It is in charge of reviewing and discussing the financial statements with the Company’s relevant areas and of recommending the approval of such to the Board of Directors, policy follow-up, the Company’s corporate procedures and bylaws, identifying any risks and opportunities, proposing the appointment of internationally recognized external auditors, validating the risks taken as per the policies on such matters, among other functions.

Corporate Practices Committee

It is responsible for reviewing and approving the Company’s general salaries and compensation policies; reviewing the profiles for the first two levels in the Company, as well as monitoring the salary and compensation market, reviewing and approving the salary and compensation package for the first and second level senior managers; reviewing and approving the operations with related parties and other significant operations, reviewing and approving the policies for the use of the Company’s patrimonial property by members and senior managers, among other functions. All the members of this committee are independent members.

Executive Committee

It is responsible for monitoring and solving any controversies arising in any other of the Company’s committees, reviewing and approving the annual budget and the general strategies per business, reviewing and approving the monthly and the comparative results versus the annual budget, reviewing and approving investment of over USD $500,000.00 or the equivalent amount in MXN Pesos, reviewing and approving long-term agreements involving amounts of over USD $200,000.00 per year or the equivalent amount in MXN Pesos, among other functions.

Credit, Risks and Treasury Committee

It is responsible for reviewing and monitoring the behavior of the Company’s credit portfolios, formulating and presenting proposals for provisions and reserves per business, establishing the ratio between the credit portfolio terms and the funding, as well as proposing and analyzing the funding procedures, reviewing and approving credit facilities, promoting and presenting operating risk policies for each business area, among other functions.

MAIN OFFICERS

CORPORATE CITIZENSHIP

In Crédito Real, we believe that our sector's healthy development, as well as that of society as a whole, requires the active involvement, promotion and encouragement of all. This is why we participate in several associations in order to stimulate our sector by means of the communication and the sharing of experiences and proposals.

The associations and institutions in which we participate are listed below:

·AMDEN (Asociación de empresas de Nomina)(payroll companies association)
·ProDesarrollo