Page 85 - Stellar IAR2015

20. MANAGEMENT FEE (Continued)On 19 November 2015, shareholders of the Company resolved to amend the terms of the management agreement entered into between Stellar Capital and Manco, as follows:• Sliding scale management fee based on NAV reduced to 1% of NAV other than (i) cash, which will attract a fee of 0.25% , (ii) ownmanaged funds which will attract a fee of 1% less the charges levied by the funds into which such funds are invested, and (iii)third-party managed assets which will attract no management fee;• Performance fee reduced from 20% of NAV growth to 15% of NAVPS growth above a 10% hurdle rate. High-water-marks remain inplace;• Management agreement cancellation fees capped from 15% of NAV previously to 50 million ordinary shares of the Company; and • Term of the management agreement amended from 3 years to perpetual, subject to annual shareholder vote which may cancel themanagement agreement with a 51% majority at any annual general meeting of the Company’s shareholders.Group Company 20142014- 34 822 1 465 11 067 - 307 47 66121. IMPAIRMENTR’000Intangible assetsInvestments in Consolidated Subsidiaries (refer to note 6) Other nancial assets (refer to note 7)Loans to Consolidated Subsidiaries (refer to note 9) Trade receivables (refer to note 10)Vat receivable (refer to note 10)In the prior period, previous patents and trade names were fully impaired.20152015-- 402 - 771 -32 - 1 465 - 846 607-- 402 1 831 43 -1 1732 9502 276Upon classi cation of Chrystalpine Investments 9 (Pty) Ltd (incorporating Andrews Kit (Pty) Ltd) and Structured Connectivity Solutions (Pty) Ltd as a Disposal Group held for sale (refer to note 12), the fair value of the investment in the Consolidated Subsidiaries was estimated to be R100.1 million. An impairment of R34.8 million as recognised, being the di erence between the collective carrying value of the Disposal Group of R134.9 million and the estimated fair value of R100.1 million.Loans to Consolidated Subsidiaries impaired by R1.8 million in the current year (2014: R11.1 million) were subsequently written o upon disposal of the Consolidated Subsidiaries (refer to note 33) as the Company sold 100% of its shares and its claims against these Consolidated Subsidiaries.During the current year the loan to Sizwe Africa IT Group (Pty) Ltd (Sizwe) was impaired by a further R0.4 million (2014: R1.4m). The receivable is long-outstanding and the recoverable amount is estimated to be nil as there are no indications at present that the costs incurred on behalf of Sizwe will be recovered.During the current year long-outstanding trade receivables of R0.7 million in ConvergeNet SA (Pty) Ltd were no longer considered to be recoverable as these were long-outstanding. As a result these trade receivables were fully impaired. Long-outstanding trade receivables of R0.8 million in Navix Distribution (Pty) Ltd were impaired in the prior period.22. LOSS / (PROFIT) ON DISPOSAL OF CONSOLIDATED SUBSIDIARIESR’000Loss / (pro t) on disposal of Consolidated Subsidiaries (refer to note 33)Group Company 2014201418 06918 069During the year the Company disposed of its dormant Consolidated Subsidiaries, namely ConvergeNet SA (Pty) Ltd, Navix Distribution (Pty) Ltd, Northbound Communication Solutions (Pty) Ltd and Simat Management Company SA (Pty) Ltd, including the claims held by the Company against those Consolidated Subsidiaries in respect of shareholder loans.STELLAR CAPITAL PARTNERS | 81201513 935-2015(10)13 935-(10)