Chemical Company of Malaysia Berhad Annual Report 2019

28. Related parties Identity of related parties For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control. Related parties may be individuals or other entities. Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group and certain members of senior management of the Group. The Group has related party relationship with its holding company, significant investors, subsidiaries, associate and key management personnel. Significant related party transactions Related party transactions have been entered into in the normal course of business under negotiated terms. The significant related party transactions of the Group and the Company, other than key management personnel compensation (see Note 29) are shown below. The balances related to the below transactions are shown in Notes 11 and 17.   Transaction value   year ended 2019 2018 Group Dividend income from a related party - 5 Proceeds from disposal of other investment - 59,156 Lease liability/Rental expense to holding company (1,150) (1,223) Income from IT services and IT shared cost charged to related companies 5,291 4,865 Management fee charged to related parties - 16 Consultancy fees to a firm of which a director is a member 15 - Rental income from an associate 282 322 Company Dividend income from a related party - 5 Dividend income from subsidiaries 18,879 21,496 Income from IT services and IT shared cost charged to related companies 5,291 4,865 Income from IT services and IT shared cost charged to subsidiaries 1,642 656 Management fee charged to subsidiaries 3,125 5,246 Management fee charged to related parties - 16 Proceeds from disposal of other investment - 59,156 Lease liability/Rental expense to holding company (1,150) (1,223) Rental income from subsidiaries - 1,439 Rental income from an associate 282 322 | Notes to the Financial Statements (continued) | 206 CHEMICAL COMPANY OF MALAYSIA BERHAD