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

The Manager and corporate governancetake action against a related party of the Manager shall not constitute a waiver of the Trustee’s right totake such action as it deems fit against such related party.RELATED PARTY TRANSACTIONSThe Manager’s internal control systemThe Manager will establish an internal control system to ensure that all future Related Party Transactions• will be undertaken on normal commercial terms; and• will not be prejudicial to the interests of LMIR Trust and the Unitholders.As a general rule, the Manager must demonstrate to its Audit Committee that such transactions satisfy theforegoing criteria, which may entail obtaining (where practicable) quotations from parties unrelated to theManager, or obtaining one or more valuations from independent professional valuers (in accordance withthe Property Funds Guidelines).The Manager will maintain a register to record all Related Party Transactions which are entered into byLMIR Trust and the bases, including any quotations from unrelated parties and independent valuationsobtained to support such bases, on which they are entered into.The Manager will also incorporate into its internal audit plan a review of all Related Party Transactionsentered into by LMIR Trust. The Audit Committee shall review the internal audit reports at least twice a yearto ascertain that the guidelines and procedures established to monitor Related Party Transactions havebeen complied with. In addition, the Trustee will also have the right to review such audit reports to ascertainthat the Property Funds Guidelines have been complied with. Furthermore, the following procedures willbe undertaken:• transactions (either individually or as part of a series or if aggregated with other transactions involvingthe same related party during the same financial year) equal to or exceeding S$100,000 in value butbelow 3.0% of the value of LMIR Trust’s net tangible assets will be subject to review by the AuditCommittee at regular intervals;• transactions (either individually or as part of a series or if aggregated with other transactions involvingthe same related party during the same financial year) equal to or exceeding 3.0% but below 5.0% of thevalue of LMIR Trust’s net tangible assets will be subject to the review and prior approval of the AuditCommittee. Such approval shall only be given if the transactions are on normal commercial terms andare consistent with similar types of transactions made by the Trustee with third parties which areunrelated to the Manager; and• transactions (either individually or as part of a series or if aggregated with other transactions involvingthe same related party during the same financial year) equal to or exceeding 5.0% of the value of LMIRTrust’s net tangible assets will be reviewed and approved prior to such transactions being entered into,on the basis described in the preceding paragraph, by the Audit Committee which may, as it deems fit,request advice on the transaction from independent sources or advisers, including the obtaining ofvaluations from independent professional valuers. Furthermore, under the Listing Manual and theProperty Funds Guidelines, such transactions would have to be approved by the Unitholders at ameeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed.Where matters concerning LMIR Trust relate to transactions entered into or to be entered into by theTrustee for and on behalf of LMIR Trust with a related party of the Manager (which would include relevantassociates thereof) or LMIR Trust, the Trustee is required to consider the terms of such transactions tosatisfy itself that such transactions are• conducted on normal commercial terms;• not prejudicial to the interests of LMIR Trust and the Unitholders; and• in accordance with all applicable requirements of the Property Funds Guidelines and/or the ListingManual relating to the transaction in question.204