EC World REIT - Annual Report 2016

EC World Real Estate Investment Trust ANNUAL REPORT 2016

(b) The NRC will review the suitability of any candidates put forward by any Director for appointment and re-

appointment, having regard to the skills required and the skills represented on the Board and whether a

candidate’s skills, knowledge and experience will complement the existing Board and whether he has sufficient

time available to commit to his responsibilities as a Director, and whether he is a fit and proper person for the

office in accordance with the Guidelines on Fit and Proper criteria issued by MAS (which require the candidate to

be, among other things, competent, honest, to have integrity and be financially sound).

(d) No member of the Board will be involved in any decision of the Board relating to his own appointment, re-

appointment or assessment of independence.

(e) The performance of the Board, Board Committees and Directors will be reviewed annually.

(f)

The NRC will proactively address any issues identified in the board performance evaluation.

The adopted process takes into account the requirements in the Code that the composition of the Board, including

the selection of candidates for new appointments to the Board as part of the Board’s renewal process, be determined

using the following principles:

(a) the Board should comprise Directors with a broad range of commercial experience, including expertise in funds

management, the property industry, banking and legal fields; and

(b) at least one-third of the Board should comprise IDs. Where, among other things, the Chairman of the Board is not

an ID, at least half of the Board should comprise IDs.

Since at least half of the Board comprises IDs, the Manager will not voluntarily subject the appointment or re-

appointment of directors to voting by Unitholders. The Board intends to continue with the principle that at least half of

the Board shall comprise IDs.

In reviewing its Board composition, the NRC and Board will also consider the guidelines that an ID should serve for no

more than a maximum of two three-year terms and any extension of his appointment after he has served for six years

could be on a yearly basis up to a period of nine years (inclusive of the initial two three-year terms served).

A Director with multiple directorships is expected to ensure that sufficient attention can be and is given to the affairs

of the Manager in managing the assets and liabilities of ECW for the benefit of Unitholders. All Directors had confirmed

that they were able to devote sufficient time and attention to the affairs of the Manager in managing the assets and

liabilities of ECW for the benefit of Unitholders. Taking into account also the attendance records of the Directors at

meetings of the Board and Board committees during FY2016 on the next page, the NRC is of the view that the current

commitments of each of its Directors are reasonable and each of the Directors is able to and has been adequately

carrying out his duties. In consultation with the NRC, the Board has prescribed that its IDs may not hold more than six

directorships in other public listed companies and its executive Directors not more than two directorships other than

the one they are serving.