Related Party Transactions Review
The Company and its subsidiaries, in their regular conduct of business, have entered into transactions with associates and other related parties principally consisting of advances and reimbursement of expenses, purchase and sale of real estate properties, construction contracts, development, management, underwriting, marketing, leasing, and administrative service agreements.
Sales and purchases of goods and services to and from related parties are made on an arm’s length basis and at current market prices at the time of the transactions.
Ayala Land has a Related Party Transaction Review Policy that aims to define related party relationships and transactions and to set out the guidelines, categories, and thresholds that will govern the review, approval, and ratification of these transactions by the Board of Directors or Shareholders, to ensure that related party relationships have been accounted for and disclosed in accordance with the International Accounting Standards (IAS) 24 on Related Party Disclosures.
In accordance with the Charter of the Board of Directors, the RPT Committee composed of three (3) independent, non executive directors are responsible to oversee and review the propriety of related party transactions and their required reporting disclosures.
All directors and employees of Ayala Land and its subsidiaries are required to promptly disclose any business and family-related transactions with the Corporation and/or its subsidiaries, to ensure that potential conflicts of interest are surfaced and brought to the attention of management.
All employees of the Corporation are also required to complete the mandatory form on “Business Interest/ Related Party Disclosure” in the month of January of each year. This is duly noted by the employee’s strategic business unit or group head, and submitted to the Human Resource Group which collates them in file and monitors compliance thereof.
To view the policy, click on the link below: