Corporate Governance OUR ROLE We, as the manager of CLCT (Manager), set the strategic direction of CLCT and its subsidiaries (CLCT Group) and make recommendations to HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CLCT (Trustee), on any investment or divestment opportunities for CLCT and the enhancement of the assets of CLCT in accordance with the stated investment strategy for CLCT. The research, evaluation and analysis required for this purpose are coordinated and carried out by us as the Manager. As the Manager, we have general powers of management over the assets of CLCT. Our primary responsibility is to manage the assets and liabilities of CLCT for the benefit of the Unitholders. We do this with a focus on generating rental income and enhancing asset value over time so as to maximise returns from the investments, and ultimately the distributions and total returns, to Unitholders. Our other functions and responsibilities as the Manager include, but are not limited to: (a) using our best endeavours to conduct CLCT’s business in a proper and efficient manner; (b) preparing annual business plans for review by the directors of the Manager (Directors), including forecasts on revenue, net income, and capital expenditure, explanations on major variances to previous years’ financial results, written commentaries on key issues and underlying assumptions on rental rates, operating expenses and any other relevant assumptions; (c) ensuring compliance with relevant laws and regulations, including the Listing Manual of the Singapore Exchange Securities Trading Limited (SGX-ST) (Listing Manual), the Code on Collective Investment Schemes (CIS Code) issued by the Monetary Authority of Singapore (MAS) (including Appendix 6 of the CIS Code (Property Funds Appendix)), the Securities and Futures Act 2001 (SFA), written directions, notices, codes and other guidelines that MAS may issue from time to time, as well as the tax rulings issued by the Inland Revenue Authority of Singapore on the taxation of CLCT and Unitholders; (d) attending to all regular communications with Unitholders; and (e) supervising the property managers of CLCT which perform the day-to-day property management functions (including leasing, marketing, promotion, operations coordination and other property management activities) for CLCT’s properties. The Manager also considers sustainability issues (including environmental and social factors) as part of its responsibilities and has included some insights in the ‘Sustainability Management’ section on page 82 of the Annual Report. More detailed information on the Board Statement, material ESG factors, sustainability frameworks, policies, practices and performances, climate-related disclosures, stakeholders’ rights, and performance enhancing mechanisms for employee participation will be provided in the Integrated Sustainability Report 2024, which is scheduled for release in mid-April 2025. CLCT, constituted as a trust, is externally managed by the Manager. The Manager appoints experienced and wellqualified personnel to run its day-to-day operations. The Manager was appointed in accordance with the terms of the OUR GOVERNANCE FRAMEWORK BOARD OF DIRECTORS 10 DIRECTORS1 (6 INDEPENDENT DIRECTORS AND 4 NON-INDEPENDENT DIRECTORS) AUDIT AND RISK COMMITTEE 5 Independent Directors EXECUTIVE COMMITTEE 4 Non-Independent Directors 2 Independent Directors and 1 Non-Independent Director NOMINATING AND REMUNERATION COMMITTEE 1 As at the date of this Annual Report. 53 Annual Report 2024
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