Notes to the Group financial statements | Note 43
for the year ended 31 December 2010
 
        December
2010
Rm
    December
2009
Rm
 
43.   RELATED PARTY TRANSACTIONS            
    Various transactions are entered into by the Company and its subsidiaries during the year with related parties.            
    The terms of these transactions are at arm’s length. Intra-group transactions are eliminated on consolidation.            
    Key management compensation            
    Salaries and other short-term employee benefits   17     15  
    Post-employment benefits   2     2  
    Other benefits   2     1  
    Bonuses   25     13  
    Share options       241  
    Total   46     271  

   

Loan to shareholder

Previously, certain legal claims were made against MTN Dubai and Scancom Limited (MTN Ghana) by two previous MTN Ghana shareholders; claiming beneficial title to a portion of the shares in MTN Ghana. As a result of this, an agreement was reached between M1 Limited (M1) and MTN Dubai that they will share the cost of settlement of these claims. During the prior year a loan was granted to M1 in respect of their share of these costs which was paid by MTN on their behalf.

This loan has fixed repayments and is interest free. The balance of this loan as at year-end is as follows

        December
2010
Rm
    December
2009
Rm
 
    Balance at beginning of year   150     208  
    Payments made to date   (52)     (52)  
    Effect of movement in exchange rates   (9)     (6)  
    Balance at end of year   89     150  

   

The loan has been accounted for accordingly in terms of IAS 39.

For details of transactions/balances between the Company and its related parties, refer to note 11 of the Company financial statements.

Subsidiaries and joint ventures

Details of investments in subsidiaries and joint ventures (note 36) are disclosed in Annexure 1 of the financial statements.

For details on the put option please refer to note 22.

Outstanding loans with Irancell are disclosed in note 13.

Associates

Details of investments in associates are disclosed in note 12 of the financial statements.

Directors

Details of directors’ remuneration are disclosed in note 5 of the Group financial statements as well as in the Directors’ Report under the heading “Details of emoluments and related payments”.

Shareholders

The principal shareholders of the Company are disclosed in the directors’ report under the heading “Shareholders’ interest”.