The Manager should provide the Board with complete, adequate and timely information through regular updates on financial
RESULTS MARKET TRENDS AND BUSINESS DEVELOPMENTS PRIOR TO ANY "OARD MEETINGS AND OR WHEN NECESSARY
As the Manager’s policy, the Directors are furnished a copy of the board papers at least five days prior to the Board meeting in
order to give them ample time to prepare for the Board meeting. This will enable them to peruse the contents of the reports
and papers to be presented during the Board meeting and provide an opportunity for relevant questions and discussions.
Proposals on certain corporate undertakings are likewise provided to the Directors prior to the Board meeting set for this
purpose.
The Board has separate and independent access to senior management and the Company Secretary at all times and vice
versa. The Company Secretary attends to corporate secretarial administration matters and attends all Board meetings and
provides relevant and complete information to the Directors timely when requested.
More importantly, the Manager provides timely, adequate and complete information to the Board relating to the Board affairs
and matters requiring its decision or approval. Reports such as but not limited to operations and financial performance of
the Trust are likewise provided. Prompt communication to the Directors (other than Board meeting) is made through several
mediums such as electronic email, teleconferencing and video conference.
4HE "OARD ALSO HAS ACCESS TO INDEPENDENT PROFESSIONAL ADVICE WHERE APPROPRIATE 4HE !2# ALSO MEETS THE EXTERNAL AND INTERNAL
auditors separately at least once a year, without the presence of the Management, in order to have unrestricted access to
any information that the Directors may need or require.
Principle 11: “The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits. The Board should likewise comment on the adequacy and effectiveness
of the internal controls and whether it has received assurance from CEO and CFO that the financial records
have been properly maintained and regarding the effectiveness of the company’s risk management and internal
control.”
INTERNAL AUDIT
4HE INTERNAL AUDIT FUNCTION OF THE -ANAGER IS OUTSOURCED TO +0-' 3ERVICES 0TE ,TD 4HE INTERNAL AUDITORS REPORT DIRECTLY TO
the ARC. The ARC is of the view that the internal auditors have adequate resources to perform their functions.
The Manager has put in place a system of internal controls of procedures and processes to safeguard LMIR Trust’s assets and
5NITHOLDERS INTEREST AS WELL AS TO MANAGE RISKS
"ASED ON THE REPORTS OF THE AUDITORS THE "OARD WITH THE CONCURRENCE OF THE !2# IS OF THE VIEW THAT THE EXISTING INTERNAL
controls are adequate and effective to address the financial, operational, compliance and information technology and risk
management systems of the business.
MANAGEMENT OF BUSINESS RISK
Effective risk management is a fundamental part of LMIR Trust’s business strategy. Recognising and managing risk is central
TO THE BUSINESS AND TO PROTECTING 5NITHOLDERS INTERESTS AND VALUE ,-)2 4RUST OPERATES WITHIN OVERALL GUIDELINES AND SPECIlC
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.
4HE "OARD REVIEWS THE BUSINESS RISKS OF ,-)2 4RUST EXAMINES LIABILITY MANAGEMENT AND ACTS UPON ANY COMMENTS FROM THE
auditors of 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.
Corporate Governance Report
(Cont’d)
47
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
