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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2013 47
In addition, as part of its undertaking to the MAS, the Manager has undertaken that it will not deal in the Units during the period
commencing one month before the public announcement of LMIR Trust’s full year results and where applicable, property valuation,
and two weeks before the public announcement of LMIR Trust’s quarterly results and ending on the date of announcement of the
relevant results or, as the case may be, property valuation.
MANAGEMENT OF BUSINESS RISK
Efective risk management is a fundamental part of LMIR Trust’s business strategy. Recognising and managing risk is central to the
business and to protecting Unitholders’ interests and value. LMIR Trust operates within overall guidelines and specifc parameters
set by the Board. Each transaction is comprehensively analysed to understand the risks involved. Responsibility for managing risk
lies initially with the business unit concerned, working within the overall strategy outlined by the Board.
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LMIR Trust. In assessing business risk, the Board considers the economic environment and risk relevant to the property industry. The
Board reviews management reports and feasibility studies on individual development projects prior to approving major transactions.
Management meets regularly to review the operations of the Manager and LMIR Trust and to discuss any disclosure issues.
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to the Board that the fnancial records of LMIR Trust have been properly maintained and the fnancial statements give a true and
fair view of the operations and fnances and that an efective risk management and internal control system has been put in place.
DEALING WITH CONFLICT OF INTEREST
The Manager has instituted the following procedures to deal with potential conficts of interest issues, which the Manager may
encounter, in managing LMIR Trust:
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Directors, including at least one Independent Director;
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by the Sponsor and/or its subsidiaries to the Board to represent its/ their interest will abstain from voting. In such matters, the
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or its subsidiaries.
It is also provided in the Trust Deed that if the Manager is required to decide whether or not to take any action against any person
in relation to any breach of any agreement entered into by the Trustee for and on behalf of LMIR Trust with a related party of the
Manager, the Manager shall be obliged to consult a reputable law frm (acceptable to the Trustee) which shall provide legal advice
on the matter. If the said law frm is of the opinion that the Trustee has a prima facie case against the party allegedly in breach under
such agreement, the Manager shall be obliged to take appropriate action in relation to such agreement. The Directors shall have
a duty to ensure that the Manager so complies. Notwithstanding the foregoing, the Manager shall inform the Trustee as soon as
it becomes aware of any breach of any agreement entered into by the Trustee for and on behalf of LMIR Trust with a related party
of the Manager and the Trustee may take any action it deems necessary to protect the rights of Unitholders and/or which is in the
interest of Unitholders. Any decision by the Manager not to take action against a related party of the Manager shall not constitute
a waiver of the Trustee’s right to take such action as it deems ft against such related party.
CORPORATE GOVERNANCE REPORT (CONT’D)