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EC World Real Estate Investment Trust ANNUAL REPORT 2016
OUR CORPORATE GOVERNANCE CULTURE
The Manager aspires to the highest standards of corporate governance. The Manager is committed to ongoing
improvements in corporate governance practices. It has developed and, on an ongoing basis, maintains sound and
robust policies and practices to meet the specific business needs of ECW and to provide a firm foundation for a
trusted and respected business enterprise. The Manager shall comply with the substance and spirit of the principles of
the Code of Corporate Governance 2012 (the “Code”) where applicable, while achieving operational excellence and
delivering ECW’s long-term strategic objectives. The Board of Directors (the “Board”) is responsible for the Manager’s
corporate governance standards and policies, underscoring their importance to the Manager.
This report sets out the corporate governance practices for the financial year ended 31 December 2016 (“FY2016”) with
reference to the Code. Where there are deviations from the principles and guidelines of the Code, explanations are
provided within this Annual Report.
Our primary role as the manager of ECW (the “Manager”) is to establish the strategic direction of ECW in accordance
with its mandate and make recommendations to DBS Trustee Limited, in its capacity as trustee of ECW (the “Trustee”),
on any investment opportunities for ECW and the enhancement of the assets of ECW in accordance with the stated
investment strategy for ECW. The research, evaluation and analysis required for these purposes are coordinated and
carried out by us as the Manager.
As the Manager, we have general powers of management over the assets of ECW. Our primary responsibility is to
manage the assets and liabilities of ECW for the benefit of the unitholders of ECW (the “Unitholders”). We do this with
a focus on generating rental income and enhancing asset value over time so as to maximise the returns from the
investments, and ultimately the distributions and total returns to Unitholders.
(A) BOARD MATTERS
THE BOARD’S CONDUCT OF AFFAIRS
Principle 1:
An effective Board to lead and control ECW
The Board is collectively responsible for the long-term success of ECW. The Board works with the management team
of the Manager (“Management”) to achieve this and Management remains accountable to the Board.
The Board oversees the affairs of the Manager in furtherance of the Manager’s primary responsibility to manage the
assets and liabilities of ECW for the benefit of Unitholders. Apart from the Board’s statutory duites and responsibilities,
the Board provides leadership to the Management and sets the strategic vision, direction and long-term objectives
for ECW.
The Board establishes goals for Management and monitors the achievement of these goals. It ensures that proper and
effective controls are in place to assess and manage business risks and compliance with requirements under the Listing
Rules, the Property Funds Appendix, as well as any other applicable guidelines prescribed by the SGX-ST, MAS or other
relevant authorities, and applicable laws. It also sets the values, disclosure and transparency standards for ECW and
ensures that obligations to Unitholders and other stakeholders are understood and met.
The Board considers sustainability issues such as environmental and social factors as part of its strategic formulation
and identifies the key stakeholder groups and recognise that their perceptions affect ECW’s reputation.
The Board has put in place a set of internal controls wherein key matters are specifically reserved for approval by
the Board. To facilitate operational efficiency, approval of operational transactions below certain level is delegated to
Management.
Corporate
Governance