Tuesday, May 26, 2009

MAS consults on proposal to make AGMS mandatory for REITS

The Monetary Authority of Singapore (MAS) has released a consultation paper on a proposal to require real estate investment trusts (REITs) to hold annual general meetings (AGMs).

The proposal will affect all REITS which are regulated as Collective Investment Schemes in Singapore.

Potential changes include requiring REITS to hold AGMs every calendar year, with an interval not exceeding 15 months from the last AGM, and within four months of the end of their financial year.

The proposal will also require REIT managers to seek mandates from unit-holders for equity raising activities.

If approved, the proposal will take effect on 1 January, 2010.

The Singapore central bank said the aim is to enhance corporate governance and improve communication between REIT managers and stakeholders.

Interested parties have until June 26 to provide their input.

Source : Channel NewsAsia – 26 May 2009

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