Corporate Governance Report
(Cont’d)
s 2ELATED 0ARTY 4RANSACTIONS EITHER INDIVIDUALLY OR AGGREGATED DURING THE SAME lNANCIAL YEAR EQUAL TO OR EXCEEDING
OF THE VALUE OF ,-)2 4RUST S NET TANGIBLE ASSETS NET ASSET WILL BE REVIEWED AND APPROVED PRIOR TO SUCH
transactions being entered into, on the basis described in the preceding paragraph, by the ARC which may,
as it deems fit, request advice on the transactions from independent sources or advisers, including obtaining
VALUATIONS FROM INDEPENDENT PROFESSIONAL VALUERS &URTHER UNDER THE ,ISTING -ANUAL AND THE 0ROPERTY &UNDS !PPENDIX
SUCH TRANSACTIONS WOULD HAVE TO BE APPROVED BY THE 5NITHOLDERS AT A MEETING OF 5NITHOLDERS AND
s AGGREGATE VALUE OF 2ELATED 0ARTY 4RANSACTIONS ENTERED INTO DURING THE lNANCIAL YEAR UNDER REVIEW WILL BE DISCLOSED IN
the Annual Report.
For Related Party Transactions entered into or to be entered into by the Trustee (as trustee of LMIR Trust), the Trustee will
review that contract to satisfy itself that such transactions contemplated therein are on normal commercial terms, are not
PREJUDICIAL TO THE INTERESTS OF ,-)2 4RUST AND THE 5NITHOLDERS AND WILL ENSURE THAT IT COMPLIES WITH REQUIREMENTS RELATING TO
interested party transactions and to interested person transactions as well as such other guidelines relating to interested
PERSON TRANSACTIONS AS MAY FROM TIME TO TIME BE PRESCRIBED BY THE 3'8 34 OR OTHER RELEVANT 2ECOGNISED 3TOCK %XCHANGE TO
apply to the real estate investment trust.
Role of the ARC for Related Party Transactions
All Related Party Transactions will be subjected to regular periodic reviews by the ARC. The Manager’s internal control
procedures are intended to ensure that Related Party Transactions are conducted on an arm’s length basis and on normal
COMMERCIAL TERMS AND ARE NOT PREJUDICIAL TO THE INTEREST OF 5NITHOLDERS
The Manager will maintain a register to record all Related Party Transactions (and the bases, including any quotations
from unrelated third parties and independent valuations obtained to support such bases, on which they are entered into)
which are entered into by LMIR Trust. The Manager will incorporate into its internal audit plan a review of all Related Party
Transactions entered into by LMIR Trust. The ARC shall review the internal audit reports to ascertain that the guidelines
and procedures established to monitor Related Party Transactions have been complied with. In addition, the Trustee will
ALSO HAVE THE RIGHT TO REVIEW SUCH AUDIT REPORTS TO ASCERTAIN THAT THE 0ROPERTY &UNDS !PPENDIX HAVE BEEN COMPLIED WITH
The ARC will periodically review all Related Party Transactions to ensure compliance with the Manager’s internal control
PROCEDURES AND WITH THE RELEVANT PROVISIONS OF THE 0ROPERTY &UNDS 'UIDELINES AND OR THE ,ISTING -ANUAL 4HE REVIEW WILL
INCLUDE THE EXAMINATION OF THE NATURE OF THE TRANSACTIONS AND ITS SUPPORTING DOCUMENTS OR SUCH OTHER DATA DEEMED NECESSARY
by the ARC.
)F A MEMBER OF THE !2# HAS AN INTEREST IN A TRANSACTION HE SHE IS REQUIRED TO ABSTAIN FROM PARTICIPATING IN THE REVIEW AND
approval process in relation to that transaction.
50
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
