The promotion of good corporate governance values underlies the organisation's decisions and actions. The Board of Directors of Harel Mallac & Co. Ltd is committed to the attainment and maintenance of high standards of corporate governance incorporating the principles of openness, integrity and accountability throughout the Group. With regard to key areas of reference the board of Directors has nominated and empowered a number of committees; and approved in 2006 a Code of Ethics.

Corporate Governance Committee
Consists of three independent directors and the Company's chairman who acts as chairperson. Its main attributions are to monitor the balance and effectiveness of the Board as well as establish a formal and transparent policy and procedure for the remuneration of directors, executives and senior management.

Audit Committee
Consists of three non-executive directors, with a majority of independent directors. Its role and responsibility is to assist the Board in discharging its duties relating to the safeguarding of assets, the operation of adequate systems, control and international reporting processes as well as risk issues management. Pertaining to the latter, a Risk Management Procedures Manual - the cornerstone of an efficient internal control system has been adopted in early 2006 by the Board who also regularly addresses and evaluates business, financial, regulatory, compliance and reputational risks.

Strategic and Corporate Advisory Committee
is exclusively made up of non-executive directors. It monitors the implementation of plans and policies decided by the Board, provides advisory services to executives and evaluates their strategic plans and budgets.