Published — June 8, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: PROPERTY MANAGER UNDER THE REAL ESTATE INVESTMENT TRUST (REIT) ACT OF 2009
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To maintain the quality of management of the REIT and afford better protection to REIT investors, the Securities and Exchange Commission (Commission), or the concerned regulatory agency, shall prescribe or pass upon and review the qualifications of individuals elected or appointed as directors or officers of the REIT, REIT fund managers, REIT property managers, distributors and other REIT participants and disqualify those found unfit.
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The appropriate regulatory agency may disqualify, suspend or remove any director or officer who commits or omits an act which renders him unfit for the position.
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In determining whether an individual is fit and proper to hold the position, regard shall be given to his integrity, experience, education, training and competence.
To maintain the quality of management of the REIT and afford better protection to REIT investors, the Securities and Exchange Commission (Commission), or the concerned regulatory agency, shall prescribe or pass upon and review the qualifications of individuals elected or appointed as directors or officers of the REIT, REIT fund managers, REIT property managers, distributors and other REIT participants and disqualify those found unfit. The appropriate regulatory agency may disqualify, suspend or remove any director or officer who commits or omits an act which renders him unfit for the position. In determining whether an individual is fit and proper to hold the position, regard shall be given to his integrity, experience, education, training and competence.
Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of2009 (R.A. No. 9856) provides for the persons who shall not be allowed to serve or act as director or officer or consultant of any REIT, to wit:
The following persons shall in no case be allowed to serve or act as director or officer or consultant of any REIT, REIT fund manager, or REIT property manager:
- Any person convicted of any crime involving any security or financial product;
- Any person convicted of an offense involving fraud or embezzlement, theft, estafa or other fraudulent acts or transactions;
- Any person who, by reason of any misconduct, is enjoined by order, judgment, or decree by any court, quasi-judicial body or administrative agency of competent jurisdiction from acting as a director, officer, employee, consultant, or agent occupying any fiduciary position;
- Any person found by the appropriate regulatory agency to have violated, or aided, abetted, counseled, commanded, induced, or procured the violation of this Act, the Revised Corporation Code, the General Banking Law, the Insurance Code, the Securities Regulation Code, or any related laws and any rules, regulations or orders thereunder;
- Any person judicially declared to be insolvent, or incapacitated to contract; and
- Any person found guilty by a foreign court, regulatory authority or government agency of the acts or violations. A conviction in the first instance shall be considered sufficient ground for disqualification.
Applicants shall submit the pertinent clearances relative thereto.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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