The fall out from the K-REIT’s handling of the OFC purchase continues. There are a lot of debates on the blogosphere regarding the article published by Ms Teh previously. [Article here >>] The fact is that She wasn’t the first one raising this. Independent assessors have highlighted this and most recently CFA Institute have an article titled Asia-Pacific REITs – Building Trust through Better REIT Governance. In that article it highlights some key recommendations:

1. REIT Management to be internally managed rather than outsourced
2. Independent board of directors subject to election and removal by unit holders
3. Annual General meetings for REITs to afford unitholders opportunity to meet and query REIT management.
4. Approval by Independent unit holders of related party transactions.
5. A limit on majority unit holder positions of 50% of the issued units, to better align interests and preserve minority unit holder tax pass-through benefits.

You can read the ......