Published — May 23, 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: REQUIREMENTS UNDER REAL ESTATE INVESTMENT TRUST (REIT)
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Real Estate Investment Trust (REIT) shall have all of the powers of a corporation under the Revised Corporation Code.
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One of the functions of the REIT is to ensure that the financial and economic aspects of the REIT are professionally managed in the interest of the shareholders and creditors.
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REIT shall not perform quasi-banking functions without the requisite license issued by the Bangko Sentral ng Pilipinas.
The Real Estate Investment Trust (REIT) shall have all of the powers of a corporation under the Revised Corporation Code, and shall perform all of the functions of a corporation, except those expressly delegated to the Fund Manager and to the Property Manager.
Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of 2009 (R.A. No. 9856) says:
The Functions of REIT are as follows:
- appoint a Fund Manager, a Property Manager and a Property Valuer;
- ensure that the financial and economic aspects of the REIT are professionally managed in the interest of the shareholders and creditors;
- formulate the annual investment strategy and policy of the REIT in accordance with the REIT Plan;
- determine the annual borrowing limit of the REIT, in accordance with the REIT Plan;
- determine the acquisition and disposition plan of real estate properties in accordance with the investment objective indicated in the REIT Plan;
- implement appropriate policies and conduct due diligence reviews such that investments are made only after careful and diligent investigations by the REIT;
- formulate dividend payment schedules of the REIT;
- maintain or cause to be maintained proper books and records of the REIT and cause the preparation of the REIT’s financial statements;
- ensure that all documents in relation to the REIT (excluding documents containing commercially sensitive information) are made available for inspection by the shareholders and creditors of the REIT in the Philippines, during normal office hours, at the place of business of the REIT and ensure that copies of such documents are available upon request by any shareholder or creditor upon payment of a reasonable fee;
- ensure compliance with any applicable laws, rules, codes or guidelines issued by governmental departments, regulatory bodies, exchanges or any other relevant organizations regarding the activities of the REIT or its administration; and
- maintain and implement investor relations procedures whether online or otherwise to handle queries and complaints.
In no case shall the REIT perform quasi-banking functions without the requisite license issued by the Bangko Sentral ng Pilipinas.
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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