Al-`Aqar Healthcare REIT Annual Report 2020

Governance Structure 89 The Committee also reviewed and deliberated on four frameworks relating to compliance and internal controls and recommended to the Board the implementation of the frameworks and policies put forward by the Management, listed as below: No Frameworks & Policy Date of Meeting 1 Anti-Bribery & Corruption Policy and Whistle Blowing Policy 13 May 2020 2 Internal Control Policy 18 November 2020 3 Compliance Framework & Policy 18 November 2020 4 Limits of Authority 18 November 2020 5 Enterprise Risk Management Framework 18 November 2020 Review of Related Party Transactions (“RPT”) and Recurrent RPT of a Revenue or Trading Nature (“RRPT”) & Conflict of Interest Situations (a) Reviewed, on a quarterly basis, the RRPT entered into by Al-`Aqar with related parties to ensure that internal policies and procedures governing RRPT are adhered to, and disclosure requirements of the Main LR are observed, listed as below: • Carried out in compliance with the REIT Guidelines and the Trust Deed; • Carried out on an arms’ length basis and under normal commercial terms; • Carried out in the best interest of the Unitholders; • Abstention from voting at Board Meetings for interested parties; • Adequately disclose to the unitholders via Bursa Announcements, Quarterly Reports and Annual Report; and • Approved by the Trustee. (b) Received updates on the directorships and shareholdings held by the Directors of the Company and persons connected with them in accordance with Section 221 of the Companies Act, 2016 on a quarterly basis. These disclosures enabled an assessment of the potential or actual conflicts of interest which may arise in relation to RPT or RRPT. All Directors are required to provide declaration letters of their interest(s) and disclosures of conflict of interest situation(s) on an annual basis, and all declarations are documented and kept in the statutory records of the Manager. The Committee took note that there were no management conflict of interest situations for operational matters (including any transaction, procedure or course of conduct) as reported by the Chief Executive Officer. Annual Report Reviewed the BARC Report, and Statement on Risk Management and Internal Control before recommending these to the Board of Directors for approval for inclusion in 2020 Annual Report. Board Audit and Risk Committee Report