Page 55 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 42

CORPORATE GOVERNANCE REPORT

Interested Person Transactions

The Board of the Trustee-Manager has established an internal control system to ensure that all future Interested Person Transactions are undertaken on normal commercial terms and will not be prejudicial to the interests of the Unitholders. For the purposes of Rule 907 of the SGX-ST Listing Manual, other than the transactions voted on by the former shareholders of China Real Estate Opportunities Ltd, as disclosed in the TCT Introductory Document. Interested Person Transactions for the Financial Period ended 31 December 2010 are disclosed on Note 28, page 82 of the Annual Report.

Risk Management

The Trustee-Manager reviews the business and operational activities of TCT to identify areas of significant business risks as well as take appropriate measures to control and mitigate the risks. All significant control policies and procedures are reviewed and any significant matters are highlighted to the Audit Committee and the Board. Financial risk management is highlighted in Note 26, pages 78 to 81.

Use of Private Placement Proceeds for the Financial Period ended 31 December 2010

An amount of S$26.7 million was raised by way of offer and placement of new units in TCT in December 2010 and the units were admitted to trading on the SGX-ST on 23 December 2010. To date, the placement proceeds have not been utilised in FY 2010. However, a payment of US$12,021,398 was made to the vendor of Central Avenue Mall, Qingdao on 4 January 2011. The balance of the placement proceeds will be utilised for the Qingdao acquisition on settlement in March 2011.