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Note 22 Related party transactions


We purchased and sold goods and services to various related parties in which we hold a 50 percent or less equity interest (investment in associates and joint ventures). Such transactions were conducted at arm’s length with terms comparable to transactions with third parties. In 2009, a significant related party transaction was a €218 million gas supply (2008: €258 million) by the company to Delesto, a joint venture of AkzoNobel and Essent. Delesto transforms gas into steam and electricity. The steam is used in our production processes and the electricity is sold to the market.

We have contracts with several pension funds, for which the financial impact is disclosed in note 17.

  • At year-end 2009, AkzoNobel had a loan to the AkzoNobel Pension Fund in the Netherlands of €90 million (2008: €89 million). In recognition of a funding deficit at the ICI Pension Fund in the UK, the company has agreed to make top-up contributions of £175 million in the years 2010 and 2011 and of £195 million in each year from 2012 to 2017.
  • A subsidiary of the company, Imperial Chemicals Industries Limited has provided an asset-backed guarantee, via another wholly owned subsidiary, ICI Receivables Funding Ltd (ICI RF), specifically incorporated to provide the guarantee, for £250 million to support its commitment for the ICI Pension Fund (also see note 17). The guarantee is backed by the cash balances of ICI RF of €224 million and the remainder by means of letters of credit.
  • In recognition of a funding deficit at the Akzo Nobel (CPS) Pension Scheme in the UK, the company has agreed to make top-up contributions of £60 million in the years 2010 and 2011 and of £75 million in each year from 2012 to 2018. In addition, contributions of at least £25m will be paid each year from the escrow account (see notes 12 and 17) until 2017 or the earlier date on which the escrow account is exhausted.
  • In recognition of a funding deficit at the ICI Specialty Chemicals Fund in the UK, the company has agreed to make top-up contributions of £11 million in the years 2010 and 2011 and of £5 million in each year from 2012 to 2017.

We consider the members of the Board of Management and the Supervisory Board to be the key management personnel as defined in IAS 24 “Related parties”. For details on their remuneration, as well as on shares and options held, see note 23. In the ordinary course of business, we have transactions with various organizations with which certain of the members of the Supervisory Board or Board of Management are associated, but no related party transactions were effected in 2009. Likewise, there have not been any transactions with members of the Supervisory Board or Board of Management, any other senior management personnel or any family member of such persons. Also no loans have been extended to members of the Supervisory Board or Board of Management, any other senior management personnel or any family member of such persons.

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