The Audit Committee believes that the investigation, which used a team of independent professionals and involved the review of documents and interviews of various Perfect World personnel and third parties, has been extensive, thorough, and complete.Recommendations While the Allegations largely proved to be inaccurate, the Audit Committee recognized that certain aspects of Perfect World's corporate governance procedures could be improved. As a result, the Audit Committee recommended to the Board of Directors of Perfect World that the following measures be taken by the Company:
- Perfect World should include complete disclosure of the transactions involving Zhizhu and/or its shareholders on one hand and Perfect World and/or Mr. Chi on the other hand, in the Company's next annual report on Form 20-F.
- Perfect World's disinterested board members should formally waive any actual or potential conflicts of interest regarding transactions involving Zhizhu.
- Perfect World should consider engaging a reputable Sarbanes-Oxley Act consultant to review the Company's implementation of internal control policies and procedures relating to the identification, evaluation and monitoring of related party transactions, and provide any necessary training to the Company's personnel overseeing internal control and reporting functions in these areas.