Sabana Shari'ah REIT

[specuvestor]

Confusion is part of the learning process.
 
In Singapore, RM (Reit Manager) is a Company (or corporation)
 
“At least half of the Manager’s board of directors must be independent directors if unitholders do not have the right to appoint the Manager’s directors.”
 
http://www.mas.gov.sg/news-and-publicati...arket.aspx
 
What is the point of giving right to unitholders to appoint members of BOD of the RM company?
 
If this right to appoint members of BOD is not given (or exercised), what is the intent of mandating that at least half the Manager’s BODs must be independent directors?
 
The purpose of ID in RM company is to protect interests of unitholders of the Reit which the RM manages, and not to protect shareholders’ interests of the RM company, IMO.
 
Technically speaking, since RM must be a separate company, internalization of RM means making the RM company wholly owned by unitholders – and there are more than one way to achieve this……………………. 
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The RM is a company own by shareholders and usually not the unitholders. My understanding is that unless the RM is majority owned by the Trust, the RM need to have 1/2 of the board as ID, to prevent conflict of interest with the sponsor, not so much to guard the interest of the unitholders per se.