Al-`Aqar Healthcare REIT Annual Report 2019

Corporate Governance Statement The Board of Directors of the Manager recognises the value of good corporate governance and ensure 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 is guided by the measures set out in the Guidelines on Listed Real Estate Investment Trust issued by the Securities Commission (Listed REIT Guidelines), the Listing Requirements of Bursa Malaysia (Listing Requirements) and the principles and guidance of the Malaysian Code on Corporate Governance 2017. THE MANAGER’S ROLE In accordance with the 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-`Aqar’s units. The Manager has been issued a Capital Markets Services License (CMSL) by the Securities Commission (SC) on 27 June 2013. 2 of the Board members, namely: 1. WanAzmanbinIsmail (eCMSRL/B7253/2017) 2. Yusaini bin Sidek (CMSRL/B3780/2013) as well as 2 of the employees, namely 1. Shahril ZairisbinRamli (CMSRL/B3781/2013) 2. Suhaimi bin Saad (CMSRL/B3782/2013) have respectively been issued with a Capital Markets Services Representatives License (CMSRL). Al-`Aqar 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- `Aqar. The Manager is required to ensure that the business and operations of Al-`Aqar 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 Deed, the Manager has full and complete control in managing the Fund (including all assets and liabilities of Al-`Aqar) for the benefits of the unitholders. The Manager’s main functions, amongst others, are as follows:- • Investment Strategy Formulate and implement Al-`Aqar’s investment strategy. • Acquisition and Divestment Make recommendations and coordinate with the Trustee and implement the acquisition of new assets and divestment of Al-`Aqar’s existing investments. • Asset Management Supervise and oversee the management of Al-`Aqar’s properties including procurement of service providers to carry out specified activities, including but not limited to onsite property management, property maintenance, rent collection and arrears control. The Manager is also responsible for developing a business plan in the short, medium and long term with a view to maximising the income of Al-`Aqar. • Risk Management Determine the level of risk tolerance and actively identify, assess and monitor the principal risks of Al-`Aqar and ensuring the implementation of appropriate risk management framework to mitigate and manage these risks. • Financing Formulate plans for equity and debt financing for Al-`Aqar’s funding requirements with the objective of optimising the capital structure and cost of capital. • Accounting Records Keep books and prepare or cause to be prepared accounts and annual reports, including annual budget for Al-`Aqar. Al-`Aqar Healthcare REIT 05 ESSENCE OF CORPORATE GOVERNANCE 85