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Ascott Residence Trust
Annual Report 2015
Corporate Governance
Dealings with Interested Persons
Review Procedures for Interested Person Transactions
The Manager has established internal control procedures to ensure that all Interested Person Transactions
are undertaken on an arm’s length basis and on normal commercial terms, which are generally no more
favourable than those extended to unrelated third parties, and are not prejudicial to the interests of Ascott Reit
and Unitholders. In respect of such transactions, the Manager would have to demonstrate to the AC that such
transactions are undertaken on normal commercial terms and are not prejudicial to the interests of Ascott Reit
and Unitholders which may include obtaining (where practicable) third party quotations or obtaining valuations
from independent valuers (in accordance with applicable provisions of the Listing Manual and the Property Funds
Appendix). The internal control procedures also ensure compliance with Chapter 9 of the Listing Manual and the
Property Funds Appendix.
In particular, the procedures in place include the following:
Interested Person Transactions
1
Approving Authority,
Procedures and Disclosure
Transaction
2
which:
(a) is below 3.0% of Ascott Reit’s latest audited net tangible assets/net asset
value; or
(b) when aggregated with other transactions
2
with the same Interested
Person in the same financial year is below 3.0% of Ascott Reit’s latest
audited net tangible assets/net asset value
• Regular periodic reviews by
Audit Committee
Transaction
2
which:
(a) is equal to or exceeds 3.0% of Ascott Reit’s latest audited net tangible
assets/net asset value; or
(b) when aggregated with other transactions
2
with the same Interested
Person in the same financial year is equal to or exceeds 3.0% of Ascott
Reit’s latest audited net tangible assets/net asset value
• Audit Committee
• Immediate announcement
Transaction
2
which:
(a) is equal to or exceeds 5.0% of Ascott Reit’s latest audited net tangible
assets/net asset value; or
(b) when aggregated with other transactions
2,3
with the same Interested
Person in the same financial year is equal to or exceeds 5.0% of Ascott
Reit’s latest audited net tangible assets/net asset value
• Audit Committee
• Immediate announcement
• Unitholders
3
Notes:
1
This table does not include the procedures applicable to interested person transactions falling under the exceptions set out in Rules 915 and
916 of the Listing Manual.
2
Any transaction of less than S$100,000 in value is disregarded.
3
In relation to approval by Unitholders for transactions that equal to or exceed 5.0% of Ascott Reit’s latest audited net tangible assets/net asset
value (whether singly or aggregated), any transaction which has been approved by Unitholders, or is the subject of aggregation with another
transaction that has been approved by Unitholders, need not be included in any subsequent aggregation.
