Download Full Report - Ascendas REIT

A-REIT is externally managed by the Manager and accordingly, it has no direct-hired employee. The Manager appoints
experienced and well-qualified management to handle its day-to-day operations. All directors and employees of the
Manager are remunerated by the Manager, not A-REIT.
On 1 August 2008, a new licensing regime for REIT managers was put in place. A person conducting real estate
investment trust management activities is now required to hold a capital markets services (“CMS”) licence pursuant
to the SFA and to comply with the conditions of such licence. On 17 December 2008, the Manager obtained a CMS
licence from the MAS to conduct REIT management activities.
Board Of Directors
The Board of Directors of the Manager (the “Board’’) oversees the management (the “Management”) and the
corporate governance of the Manager including establishing goals for management and monitoring the achievement
of these goals. All Board members participate in matters relating to corporate governance, business operations and
risks, financial performance and the nomination and appointment of directors. The Board has established an oversight
framework for the Manager and A-REIT, including a system of internal control and a business risk management
process.
The Board meets regularly, at least once every quarter, to discuss and review the strategies and policies of A-REIT,
including any significant acquisitions and disposals, the annual budget, the financial performance of the Manager and
A-REIT against a previously approved budget and to approve the release of the quarterly and full year results. The
Board also reviews the risks to the assets of A-REIT, examines liabilities management and acts upon comments from the
auditors of A-REIT. When necessary, additional Board meetings are held to address significant transactions or issues.
The Board has adopted a set of internal controls which sets out approval limits for capital expenditure, investments and
divestments, conduct of bank transactions and cheque signatories, amongst others. Appropriate authorities have been
delegated to the Management to facilitate operational efficiency.
Changes to regulations, policies and financial reporting standards are monitored closely. Where the changes have
significant impact on A-REIT and its disclosure obligations, the directors are briefed either during Board meetings, at
specially-convened sessions or via circulation of Board papers.
Composition of the Board
The Board presently consists of eight members, six of whom are independent directors as at 31 May 2010. The Chairman
and Deputy Chairman of the Board are Mr David Wong Cheong Fook and Ms Chong Siak Ching respectively. The
composition of the Board is determined using the following principles:
1. the Chairman of the Board should be a non-executive director;
2. the Board should comprise directors with a broad range of commercial experience including expertise in funds
management and the property industry; and
3. one-third, with a minimum two, of the Board members should be independent directors.
8th Annual Report FY09/10
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