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Notes to the Company Financial Statements

12. Related party transactions

Subsidiaries

The Company transacts and has outstanding balances with its subsidiaries. Amounts due from subsidiaries and amounts due to subsidiaries are disclosed on the face of the Company Balance Sheet.

These loans are generally unsecured and interest is calculated based on market rates. The Company has interest payable to subsidiaries during the year of 221m (2006: 149m) and interest receivable from subsidiaries during the year of 115m (2006: 61m). Management fees payable to subsidiaries in respect of centrally provided services amounted to 33m (2006: 33m). Dividends received from subsidiaries in 2007 were 74m (2006: 28m).

Key management personnel

Key management personnel are deemed to be the members of the board of directors of the Company. It is this board which has responsibility for planning, directing and controlling the activities of the Company. Key management personnel compensation is disclosed in the directors’ remuneration report of the Group.

There were no other material related party transactions.

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