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27. Related party transactions

The Group's related parties include the subsidiaries, the members of the Board of Directors and the Management Board, the CEO and the close family members of the preceding persons, as well as those entities in which these people have control. According to the Finnish Securities Markets Act, a controlled entity is an entity in which a shareholder, a member or another person exercises the control referred to in the Act. The company considers the management to include members of the Boars of Directors, the CEO and the other members of the Management Board.



The company considers the management to include members of the Boars of Directors, the CEO and the other members of the Management Board.


EUR 1,000 2018 2017





Compensation to management

Salaries, fees and other short-term employee benefits -965 -1,636
Compensation to management total -965 -1,636





Salaries and fees
Padma Ravichander, CEO

-465 -413





Members of the Board of Directors:
Harri Koponen, Chairman of the Board

-116 -63
Neil Macleod, Vice Chairman of the Board 24.9.2018-


Jyoti Desai 24.9.2018-



Pentti Heikkinen

-74 -39
Conrad Neil Phoenix 24.9.2018-



Priyesh Ranjan 24.9.2018-



Christer Sumelius

-65 -31
Matti Jaakola, 2015 - 3.9.2018

-61 -31
Pirjo Pakkanen, 9.5.2016 - 3.6.2017


-22










The pension benefits of the CEO and members of Board of Directors are determined by the Finnish Employees Pensions Act (TyEl). The obligatory pension expenses for the CEO were EUR 0 (0) thousand and for the mebers of the Board of Directors totally EUR 63 (39) thousand. The pension expenses are presented per person in note 4 of the parent company. The retiment age of the CEO is determined by the employee pension law. CEO or the other members of the Management Board and the Board of Directors have no additional pension arrangements.

The period of notice of the CEO’s contract is 6 months from the time of resignation and from 0 to 6 months’ period of notice from the company, at the company’s discretion. Salary is paid for the period of notice and, in the case of notice given by the company, an additional compensation equal to 12 months’ salary will be paid. The company can terminate the contract of the CEO with immediate effect, without a separate compensation, if the CEO has materially breached his CEO contract, convicted guilty to a crime or otherwise caused substantial damage to the company. In case new owner will acquire over 50 % of the company's outstanding shares, or over 50 % of company's assets are moved to a new owner, the CEO has a right to terminate contract with three months notice period and is entitled to an additional compensation equal to six months salary.










The relationships between the Group's parent company and subsidiaries on 31 December 2018:
Company name Nature of company activities Domicile Group's ownership % Group's share of voting rights %





Tecnotree Oyj (parent) Operative parent company Finland

Tecnotree Services Oy Dormant company Finland 100 100
Tecnotree Convergence (Middle East) FZ-LLC Sales company The United Arab Emirates 100 100
Tecnotree Ltd Product development and managment Ireland 100 100
Tecnotree Sistemas de Telecommunicacao Ltda Sales company Brazil 100 100
Tecnotree Argentina SRL * Sales company Argentina 100 100
Tecnotree (M) Sdn Bhd Sales company Malaysia 100 100
Tecnotree Nigeria Ltd Sales company Nigeria 100 100
Tecnotree France SARL Sales company France 100 100
Lifetree Cyberworks Pvt. Ltd Holding company India 100 100
Tecnotree Convergence Ltd Product development, delivery and management company India 99.83 99.83
Dehrekat Zindagi LLC Service and sale company Iran 100.00 100.00
Lifetree Convergence Pty Ltd Dormant company South-Africa 99.83 99.83
Lifetree Convergence (Nigeria) Ltd Dormant company Nigeria 94.84 94.84





The parent company has branch offices in the United Arab Emirates and in Peru.