REITs to hold AGMs from 2010

All Real Estate Investment Trusts (REITs) will have to hold an AGM by 31 Dec 2010 under revisions introduced by the MAS.

The Monetary Authority of Singapore issued the requirement that come into effect in January next year, under a revised Property Funds Appendix for REITs.

It states that REITs must hold Annual General Meetings (AGMs) not more than 15 months from the last preceding AGM, a move said the MAS, that would enhance corporate governance for REITs and allows REIT managers to be more accountable to unitholders.

The timing of the AGM, which are in line with the Singapore Stock Exchange’s rule on the timing of AGMs for other listed issuers, means that going forward REITs will have to hold their AGMs within 4 months from their financial year end.

The MAS also also revised the Appendix to make it easier for REIT managers to seek authorisation for a new REIT since they are now subject to the capital markets services licensing regime.

According to a MAS news release, the revisions took into account feedback from public consultations held in May 2009 and discussions with REIT players.

Source : Channel NewsAsia – 11 Nov 2009

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