MAS Consults on Proposal to Hold Mandatory AGMs for REITS

Singapore, 26 May 2009...The Monetary Authority of Singapore (MAS) has released a consultation paper on a proposal to amend the Property Fund Guidelines to mandate that REITs hold Annual General Meetings (AGMs).

2   The proposed amended guidelines will apply to all REITs which are regulated as Collective Investment Schemes (CIS) in Singapore.  Under the proposal, REITs will be required to hold AGMs once every calendar year and not more than 15 months from the last preceding AGM, with effect from 1 January 2010. This means all REITs will have held an AGM by 31 Dec 2010. In line with SGX’s rule on the timing of AGMs for other listed issuers, REITs will have to hold their AGMs within 4 months from their financial year end.

3   MAS has considered the following merits in mandating AGMs for REITs:

(i)  Mandatory AGMs will enhance corporate governance for REITs by providing an important channel for communication between REIT managers and unitholders, and for REIT managers to be more accountable to unitholders. 

(ii)  AGMs will provide a regular opportunity for REIT managers to seek general mandates from unitholders for issuance of new units and thus accord greater flexibility for equity raising.

4   MAS invites interested parties to give their views and comments on the proposals contained in the Consultation Paper by 26 June 2009. (Click here to view the consultation paper)

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