Corporate governance refers to the system of rules, practices and processes by which a business sets out how it will be directed and controlled. Corporate governance is about setting the “tone from the top” that encourages an environment of integrity, transparency, accountability and independent oversight.
INTEGRITY
Trustees are merely the stewards of the Trust assets for Investors and are expected to act in the best interest of the Investors at all times. Through the appointment of Trustees with extensive industry experience and multiple financial and professional designations, such as CPAs, CFAs, MBAs, P.Eng and ICD.D, the Trust is demonstrating its commitment to ensuring the professional integrity of the Trustees and management for the benefit of Investors. In addition, the Trust has set out clear guidelines that the Asset Manager is required to follow when assessing and deploying assets on behalf of the Trust.
TRANSPARENCY
The Trust will provide Investors with regular communications from the management team detailing the successes and challenges that the Trust is facing. These communications will include, where appropriate, information on marketing efforts and financial updates. The Trust will also ensure that Investors are provided with annual audited financials and reasonable access to the NAV of their units.
ACCOUNTABILITY
The Trust has been organized so as to promote alignment between the Trustees, the Asset Manager and Investors. This is accomplished by the prioritization of the return of capital and the implementation of an annual hurdle rate of 7% that must be achieved prior to the Asset Manager receiving any performance compensation at exit. In addition, Investors have the ability to remove the Asset Manager for cause in order to ensure accountability for performance and the execution of the business plan.
INDEPENDENT OVERSIGHT
The Trust’s Board currently includes two Independent Trustees who are required to provide unanimous approval of any Conflict of Interest matters. In addition, the Trust’s Board includes two Trustees that hold their ICD.D designations from the Institute of Corporate Directors, an organization committed to corporate governance practices of the highest standards.
