(A) BOARD MATTERS THE BOARD’S CONDUCT OF AFFAIRS Principle 1 The company is headed by an effective Board which is collectively responsible and works with Management for the long-term success of the company. The Board, which comprises a majority of Independent Directors (IDs), is collectively responsible for the overall corporate governance of the Manager, including establishing goals for management and monitoring the achievement of these goals. The Board also sets the values and ethical standards of MUST. The Board seeks to ensure that the Manager manages MUST’s assets and liabilities for the benefit and in the best interests of Unitholders. All Board members participate in matters relating to corporate governance, business operations and risks, financial performance, and the nomination and review of the Directors. Role The key roles of the Board are to: • guide the corporate strategy and directions of the Manager; • ensure that senior management discharges business leadership and demonstrates the highest quality of management skills with integrity and enterprise; and • oversee the proper conduct of the Manager. MFC Code of Business Conduct and Ethics The Manager has adopted the MFC Code of Business Conduct and Ethics. It affirms MUST’s commitment to ethical conduct and its practice of complying with all applicable laws and avoiding potential or actual conflicts of interest, underscoring MUST’s dedication as well as to setting the appropriate tone from the top and desired organisation culture, to ensure proper accountability. All Directors and employees of the Manager are subject to this code and must complete an annual training and certification of compliance with the code. The MFC Code of Business Conduct and Ethics is available at https://www. manulifeusreit.sg/about#policy_procedure. Board Committees Two Board Committees, namely the Audit and Risk Committee (ARC) and Nominating and Remuneration Committee (NRC), have been constituted with written terms of reference to assist the Board in discharging its responsibilities and may decide on matters within their terms of reference and applicable limits of authority. The terms of reference of the respective Board Committees set out their compositions, authorities and duties, including reporting back to the Board. All terms of reference are reviewed and updated as and when necessary to ensure their continued relevance. Notwithstanding the delegation of authority to the Board Committees, the ultimate responsibility for decision-making and oversight rests with the Board as a whole. The composition of the ARC and NRC, the terms of reference, and a summary of each committee’s activities, are disclosed in the subsequent sections of this corporate governance report. Each of these Board Committees operates under delegated authority from the Board, with the Board retaining overall oversight. The Board may form other Board Committees as dictated by business imperatives. Membership of the various Board Committees is managed to ensure an equitable distribution of responsibilities among Board members, to maximise the effectiveness of the Board and to foster active participation and contribution from Board members. Diversity of experience and appropriate skills are considered in the composition of the respective Board Committees. Internal Limits of Authority The Manager has also adopted a set of internal controls which establishes financial approval limits for capital expenditure, investments, divestments, bank borrowings and issuance of debt instruments. Apart from matters that specifically require the Board’s approval, the Board delegates authority for transactions below those limits to the Board Committees and management. Approval sub-limits are also provided at management level to optimise operational efficiency. ANNUAL REPORT 2024 | 113
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