ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
93. Basis for remuneration of trustee and REIT manager
Edition: 2023-10-06 · In force
93. Basis for remuneration of trustee and REIT manager
(1)The basis of calculating the fees and the fees payable from time to time shall be specified in the—(b)reports prepared from time to time.(2)The fees payable to the REIT manager and the trustee shall, despite the provisions of the scheme documents, be fair, reasonable and based on the—(a)roles, duties and responsibilities of the REIT manager or the trustee;(b)interests of the REIT securities holders;(c)nature of the real estate investment trust;(d)extent of the services provided by the REIT manager or trustee;(e)size and composition of the assets of the fund;(f)success, in the case of a REIT manager, in meeting the investment objectives; and(g)need to protect, in the case of a trustee, the interests of REIT securities holders.(3)Where the trustee is of the opinion that any proposed material increase in fees or change in the method of calculating the fees charged by the REIT manager is not fair and reasonable, the trustee shall convene a meeting of the REIT securities holders.(4)The trustee shall, at a meeting convened under paragraph (3), require the REIT manager to justify any increase in fee charged by the REIT manager or the basis of calculation.(5)The REIT manager shall not, where the trustee calls a meeting under paragraph (3), ffect an increase or change the basis of calculating its fees unless agreed to by an ordinary resolution of the REIT securities holders.(6)Despite any provision in the scheme documents, a REIT manager which is removed or dismissed for cause shall not be entitled to—(a)any additional fee other than that otherwise payable on an annual or accrued basis up until the time of the removal or dismissal; or(b)claim any penalty in respect of the dismissal, removal or otherwise ceasing to act.