F.32. Off-balance sheet items
F.32.1. Commitments
As at 31 December 2015 the Group had no significant contractual commitments for future minimum lease payments of non-cancellable operating leases except for those disclosed in Note F.24.
F.32.2. Other contingencies
F.32.2.1. Legal
As at the release date of the financial statements, there was a legal case concerning the decision of the general meeting of the Parent company in 2005 approving a squeeze-out of minority shareholders and consideration paid on the squeeze-out pending. Based on legal analyses carried out by external legal counsel, management of the Company believes that this case does not rise any contingent future liabilities for the Company.
F.32.2.2. Guarantees
When negotiating terms and conditions in respect of acquisition of real estate properties the Group receives guarantees given by the seller of the property. The guarantees usually refer to ownership rights and potential claims raised against owner of the property.
F.32.2.3. Pledged assets and collaterals
As at 31 December 2015, the Group has pledged approximately CZK 3,470 million of assets as collateral. In particular, this amount has been pledged against loans, which have been recognized essentially in the context of the Group’s real estate activities. The outstanding balance of the loans as at 31 December 2015 is CZK 1,165 million.
Furthermore, the Group has received financial assets as collaterall for approximately CZK 5,425 million, in particular for transactions in bonds and loans.
F.32.2.4. Participation in nuclear pool
As a member of the Czech Nuclear Pool, the Company is jointly and severally liable for the obligations of the pool. This means that, in the event that one or more of the other members are unable to meet their obligations to the pool, the Parent Company would take over the uncovered part of this liability, pro-rata to its own net retention used for the contracts in question. The management does not consider the risk of another member being unable to meet its obligations to the pool to be material to the financial position of the Group.
The potential liability of the Group for any given insured risk is contractually capped at twice the Parent Company’s net retention for that risk.
The subscribed net retention is as follows:
| (CZK million) | 2015 | 2014 |
|---|---|---|
| Liability (w/o D&O liability) | 148 | 148 |
| D&O liability only | 18 | 18 |
| FLEXA extended coverage of nuclear Risks plus BI | 576 | 576 |
| Transportation risk | 115 | 115 |
| Engineering and “all risk” cover | 288 | 288 |
| Total | 1,145 | 1,145 |
F.32.2.5. Membership in the Czech Insurance Bureau
As a member of the Czech Insurance Bureau (“the Bureau”) related to MTPL insurance, the Group is committed to guarantee the MTPL liabilities of the Bureau. For this purpose, the Group makes contributions to the guarantee fund of the Bureau based on the calculations of the Bureau.
In the event of a fellow member of the Bureau being unable to meet its liabilities arising from MTPL due to insolvency, the Group may be required to make additional contributions to the guarantee fund. The management does not believe the risk of this occurring to be material to the financial position of the Group.