AL-SALAM REIT ANNUAL REPORT 2020

86 AL-SALĀM REIT INTRODUCTION The Board is pleased to present the Corporate Governance (CG) Statement of the Manager for the financial year ended 31 December 2020. This CG Statement is prepared pursuant to the Bursa Malaysia Securities Berhad Main Market Listing Requirements (Listing Requirements). The Board has been guided by the Malaysian Code on Corporate Governance 2017 (MCCG) in its implementation of CG practices while ensuring compliance with the Listing Requirements and the Companies Act 2016 in addition to monitoring developments in industry practice and other relevant regulations and other statutory requirements, best practices and guidelines as below: • M ain Market Listing Requirements of Bursa Malaysia Securities Berhad; • The Guidelines for Listed Real Estate Investment Trusts; and • Bursa Malaysia Corporate Governance Guide – 3rd Edition The CG Statement provides a summary of the Manager’s CG practices during the financial year, with reference to the following 3 principles, intended outcomes and practices of the MCCG, having considered the Company’s structure, processes, business environment and industry practices: • Principle A: Board leadership and effectiveness; • Principle B: Effective audit and risk management; and • P rinciple C: Integrity in corporate reporting and meaningful relationship with stakeholders. This CG Statement should be read together with other statements in this Annual Report such as the Statement on Risk Management and Internal Control and the Board Audit and Risk Committee (BARC) Report. In its deliberation and review of the CG Statement, the Board is satisfied that the practices set out in the MCCG, in all material respects, have been applied to achieve the intended outcomes for the financial year under review, unless otherwise mentioned in this CG Statement. PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS BOARD RESPONSIBILITIES The Manager is led by its Board of Directors that has full and effective control over the business undertakings from setting the overall strategic direction, allocating resources to the Management team to achieve the direction as well as oversee, scrutinise and monitor the Management to ensure that all actions and decisions made are consistent with the achievement of the Fund’s short-term and long-term plans. The Board retains effective control over important policies and processes such as internal controls, risk management, governance and compliance. The Board also assumes the responsibilities of reviewing, approving, adopting and monitoring the implementation of the annual strategic and business plan for the Fund and the Group as a whole. In discharging its responsibilities to meet the Fund’s objectives and plans, the Board: • T ogether with the senior Management team foster a healthy corporate governance culture which is founded on the principles of transparency, integrity and objectivity; • E nsure that the senior Management has the necessary skills and experience; • E nsure that the Company has in place an effective communication channel with stakeholders; and • E nsure that there is a sound framework on corporate reporting, including financial and non-financial reporting. The Board also delegated certain of its responsibilities to the following Board Committees, which operate within clearly defined Terms of Reference of respective Committees:- • Board Audit and Risk Committee; • Board Investment Committee; and • Nomination and Remuneration Committee. Chairman of the Board The Manager is led by a Chairman, Dato’ Hj. Mohd Redza Shah Bin Abdul Wahid. The Chairman provides leadership during Board meetings and acts as the conduit amongst the Board members that sparks discussions and debates which ultimately results in Board decisions. He also promotes a culture of openness and encourages active participation and allowing dissenting views to be freely expressed. Additionally, he ensures that all decisions are taken on a sound and well-informed basis, including by ensuring that all strategic and critical issues are considered by the Board. CORPORATE GOVERNANCE STATEMENT