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(05-12-2023, 05:16 PM)r0n Wrote: https://www.businesstimes.com.sg/compani...nalisation
It is now clear that whatever Quarz previously said about the trust deed isn't true already...
The full letter from the committee.
I do disagree with some of the points below because external managers of S-REITs are NOT fully entrenched, as they can be voted off with simple majority, and replaced with ANOTHER external manager. So there is accountability, there is recourse.
Sabana unitholders respectfully urge MAS and SGX RegCo to safeguard the fundamental key pillar of investor protection by providing clear guidance on the Trustee's position on internalization and whether the sponsor is prohibited to vote in a resolution where it is a related party (as the vote will directly affect its fee income)
6. About 80% of sponsors and their concert/related parties hold ~21% or more unitholdings in the S-REITs they manage. If the sponsor and their concert parties are permitted to vote in an extraordinary resolution to amend the Trust Deed to effect internalization (if any) despite them being interested in the matter as it would directly impact their fee income, it is clear that they would vote against this resolution.
7. Due to the impossibly high threshold to pass this resolution if they vote (requires more than 80% of all remaining unitholders to both turn up and vote for the resolutions), this will mean that the removal of the external manager by unitholders and Internalization is effectively impossible. There is essentially no fundamental pillar of protection for unitholders.
8. If this is so, it will send a shocking signal to all investors: External managers of S-REITs are fully "entrenched" however bad their performance is, with zero accountability and no recourse for unitholders. This will represent a severe regression in corporate governance standards and unitholder protection in S-REITs to a level which is substantially below international norms and will consequently make the entire sector 'uninvestable'.
https://www.prnewswire.com/apac/news-rel...06569.html