158
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
28
MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS
(a) Key management personnel remuneration
Remuneration for key management personnel of the Group, including amounts paid to certain of the Company's directors, chief executive and the highest paid employees as disclosed in notes 7 and 8 respectively, is as follows:
Short-term employee benefits Post-employment benefits
2018
HK$'000
2017
HK$'000
6,491
5,857
123
115
6,614
5,972
Total remuneration is included in "staff costs” (see note 5(a)).
(b) Other material related party and connected transactions
(i)
In 1999, the Group entered into a development agreement (the "Agreement") with Henderson Land Development Company Limited (“HLD”) and two wholly-owned subsidiaries of HLD ("HLD Sub 1" and "HLD Sub 2"), whereby HLD Sub 1 and HLD Sub 2 acquired the right to 50% of any proceeds from the future sale of the residential portion of the redevelopment of Metro Harbour View, Kowloon Inland Lot No. 11127 (the "MHV Property") for a consideration of HK$1,500,000,000.
As part of the Agreement, HLD Sub 1 and HLD Sub 2 agreed to reimburse the Group 50% of its development expenditures relating to the residential portion of the MHV Property. At 31 December 2018, an amount of HK$286,000 (2017: HK$276,000) remained unpaid and was included in trade and
other receivables.
In February 2017, the Group entered into a deed of novation (the “Deed of Novation") with HLD, HLD Sub 1 and HLD Sub 2 pursuant to which HLD Sub 1 transferred and assigned unto HLD Sub 2, and HLD Sub 2 took and assumed all of the rights and obligations of the HLD Sub 1 under the Agreement subject to the terms and conditions as stated in the Deed of Novation. The Deed of Novation was supplemental to the Agreement.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018
#
Page 160Page 161