AL-SALAM REIT ANNUAL REPORT 2017

96 AL-SALĀM REIT ANNUAL REPORT 2017 The Board of Directors of the Manager (the Board) recognises the value of good corporate governance and prioritises in ensuring that high standards of corporate governance is upheld and practised with the ultimate objective of protecting and enhancing Unitholders’ value and protecting the interests of all stakeholders. The Board is committed to ensure the continuity of good corporate governance practice that will add value to the business and affairs of the Manager. The Manager has been guided by the measures set out in the Guidelines on Real Estate Investment Trust issued by the Securities Commission (REIT Guidelines), the Listing Requirements of Bursa Malaysia (Listing Requirements) and the principles and guidance of the new Malaysian Code on Corporate Governance 2017. THE MANAGER’S ROLE In accordance with the Trust Deed, the Manager is appointed to manage the assets and administer the Fund. Its primary objective is to provide the Unitholders with long term and stable income distributions with the potential of sustainable growth as well as to enhance the net asset value of Al-Salām REIT’s units. The Manager has been issued a Capital Markets Services License (CMSL) by the Securities Commission (SC) on 27 June 2013 as required under the new licensing regime for REIT Managers which took effect from 28 December 2012. Two of the Board members, namely Wan Azman bin Ismail and Yusaini bin Sidek as well as two of the employees, namely Shahril Zairis bin Ramli and Suhaimi bin Saad have been issued with a Capital Markets Services Representatives License (CMSRL). Al-Salām REIT is externally managed by the Manager and as such, it has no employees. The Manager has appointed experienced and qualified personnel to handle its day-to-day operations. All Directors and employees of the Manager are remunerated by the Manager and not by Al-Salām REIT. The Manager is required to ensure that the business and operations of Al-Salām REIT are carried and conducted in a proper, diligent and efficient manner, and in accordance with the acceptable business practices in the real estate investment trust industry in Malaysia. Subject to the provisions of the Trust Deed, the Manager has full and complete control in managing the Fund (including all assets and liabilities of Al-Salām REIT) for the benefits of the Unitholders. The Manager’s main functions, amongst others, are as follows: • Investment Strategy Formulate and implement Al-Salām REIT’s investment strategy. • Acquisition and Divestment Make recommendations and coordinate with the Trustee and implement the acquisition of new assets and divestment of Al-Salām REIT’s existing investments. CORPORATE GOVERNANCE STATEMENT