LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

The Manager and corporate governanceA list of the present and past directorships of each Executive Officer of the Manager over the last five yearspreceding the Latest Practicable Date is set out in “Appendix H—List of Present and Past PrincipalDirectorships of Directors and Executive Officers”.Roles and responsibilities of the ManagerThe Manager has general powers of management over the assets of LMIR Trust. The Manager’s mainresponsibility is to manage LMIR Trust’s assets and liabilities for the benefit of Unitholders.The Manager will set the strategic direction of LMIR Trust and give recommendations to the Trustee on theacquisition, divestment or enhancement of assets of LMIR Trust in accordance with its stated investmentstrategy.The Manager has covenanted in the Trust Deed to use its best endeavours to• carry on and conduct its business in a proper and efficient manner;• ensure that LMIR Trust’s operations are carried on and conducted in a proper and efficient manner; and• conduct all transactions with or for LMIR Trust at arm’s length and on normal commercial terms.Furthermore, the Manager will prepare property plans on a regular basis, which may contain proposalsand forecasts on net income, capital expenditure, sales and valuations, explanations of major variances toprevious forecasts, written commentary on key issues and any relevant assumptions. The purpose ofthese plans is to explain the performance of LMIR Trust’s properties.The Manager will also be responsible for ensuring compliance with the applicable provisions of the SFAand all other relevant legislation, the Listing Manual, the CIS Code (including the Property FundsGuidelines), the Trust Deed, any tax ruling and all relevant contracts. The Manager will be responsiblefor all regular communications with Unitholders.The Manager may require the Trustee to borrow on behalf of LMIR Trust (upon such terms and conditionsas the Manager deems fit, including the charging or mortgaging of all or any part of the DepositedProperty) whenever the Manager considers, among other things, that such borrowings are necessary ordesirable in order to enable LMIR Trust to meet any liabilities or to finance the acquisition of any property.However, the Manager must not direct the Trustee to incur a borrowing if to do so would mean that LMIRTrust’s total borrowings and deferred payments exceed 35.0% of the value of its Deposited Property at thetime the borrowing is incurred, taking into account deferred payments (including deferred payments forassets whether to be settled in cash or in Units). The Property Funds Guidelines allow a REIT to borrowmore than 35.0% of the value of its Deposited Property (up to a maximum of 60.0%) only if a credit ratingfrom Fitch Inc., Moody’s or Standard & Poor’s is obtained and disclosed to the public.In the absence of fraud, negligence, wilful default or breach of the Trust Deed by the Manager, it shall notincur any liability by reason of any error of law or any matter or thing done or suffered to be done or omittedto be done by it in good faith under the Trust Deed. In addition, the Manager shall be entitled, for thepurpose of indemnity against any actions, costs, claims, damages, expenses or demands to which it maybe put as Manager, to have recourse to the Deposited Property or any part thereof save where such action,cost, claim, damage, expense or demand is occasioned by the fraud, negligence, wilful default or breach ofthe Trust Deed by the Manager. The Manager may, in managing LMIR Trust and in carrying out andperforming its duties and obligations under the Trust Deed, with the written consent of the Trustee, appointsuch person to exercise any or all of its powers and discretions and to perform all or any of its obligationsunder the Trust Deed, provided always that the Manager shall be liable for all acts and omissions of suchpersons as if such acts and omissions were its own.196