The Manager is a subsidiary of CapitaLand Limited (CL) which holds a significant unitholding interest
in Ascott Reit. CL is a long-term real estate developer and investor and has strong inherent interests
in the performance of Ascott Reit. CL’s retention of a significant unitholding interest in Ascott Reit
ensures its commitment to Ascott Reit and aligns its interests with other Unitholders. The Manager’s
association with CL provides the following benefits, amongst other things, to Ascott Reit:
(a) stable pipeline of property assets through CL’s development activities;
(b) wider and better access to banking and capital markets on favourable terms;
(c) fund raising and treasury support; and
(d) access to a bench of experienced management talent.
OUR CORPORATE GOVERNANCE CULTURE
The Manager aspires to the highest standards of corporate conduct as guided by the Principles of
the Code of Corporate Governance 2012 (Code). The Manager believes in developing and
maintaining sound and transparent policies and practices to meet the specific business needs of
Ascott Reit and to provide a firm foundation for a trusted and respected business enterprise. The
Manager remains focused on complying with the substance and spirit of the Principles of the Code
while achieving operational excellence and delivering Ascott Reit’s long-term strategic objectives.
The Manager has received accolades from the investment community for excellence in corporate
governance. More details can be found in the Investor Relations section on page 52 of the Annual
Report.
This report sets out the corporate governance practices for financial year (FY) 2014 with reference
to the Code. Where there are deviations from the principles and guidelines of the Code, an
explanation has been provided within this report.
(A) BOARD MATTERS
The Board’s Conduct of Affairs
Principle 1:
Every company should be headed by an effective Board to lead and control the company. The
Board is collectively responsible for the long-term success of the company. The Board works
with Management to achieve this objective and Management remains accountable to the Board.
The Manager is led by a board of Directors (Board) comprising a majority of non-executive
independent Directors. Each Director brings to the Board skills, experience, insights and sound
judgement, which together with his strategic networking relationships, serve to further the interests
of Ascott Reit. At all times, the Directors are collectively and individually obliged to act honestly and
with diligence, and consider the best interests of Unitholders.
The Board oversees the affairs of the Manager, in furtherance of the Manager’s primary responsibility
to manage the assets and liabilities of Ascott Reit for the benefit of Unitholders. The Board appoints
the Chief Executive Officer (CEO), who, assisted by the management team of the Manager
(Management), is responsible for the day-to-day management and overall operation of Ascott Reit’s
business.
The Board provides leadership to the Management, sets strategic directions and oversees the
management of Ascott Reit. 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
Corporate Governance
28 | Ascott Residence Trust Annual Report 2014
