CapitaLand Integrated Commercial Trust - Annual Report 2021

ADDITIONAL INFORMATION Executive Committee In addition to the AC and NRC, the Board has also established an EC. The EC oversees the day-to-day activities of the Manager and that of CICT, on behalf of the Board. The EC is guided by its terms of reference, in particular, the EC: (a) approves specific budgets for capital expenditure on development projects, acquisitions and enhancements/ upgrading of properties within its approved financial limits; (b) reviews management reports and operating budgets; and (c) awards contracts for development projects. The members of the EC also meet informally during the course of the year. 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 CICT 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 CICT 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 S$100,000 and above per transaction (which singly, or when aggregated with other transactions 2 with the same Interested Person in the same financial year is less than 3.0% of CICT’s latest audited net tangible assets/net asset value) • Management • Audit Committee Transaction 2 which: (a) is equal to or exceeds 3.0% of CICT’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 CICT’s latest audited net tangible assets/net asset value • Management • Audit Committee • Immediate Announcement Transaction 2 which: (a) is equal to or exceeds 5.0% of CICT’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 CICT’s latest audited net tangible assets/net asset value • Management • Audit Committee • Immediate Announcement • Unitholders 3 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 are equal to or exceed 5.0% of CICT’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. Annual Report 2021 197 Corporate Governance