Opinion on the naming of the Consultant when the Technical Committee might appoint it.
Evaluating senior managers’ performance.
Bringing recommendations on the reports that the Technical Committee might have to request to the Consultant and Trustee.
Bringing recommendations to the Technical Committee for the removal of the external audit.
Bringing opinions on distributions that exceed 95% of the financial period.
Recommending on transactions with any related party.
A majority of favorable votes from Independent Members is required on any transaction with a related party or any transaction representing more than 5% of the Trust’s Estate.
Presenting market assessments and recommendations to the TC, as appropriate.
Requesting and obtaining independent experts opinions on relevant matters.
Conflict Of Interest Mitigation Mechanisms
A related-party transaction is presented to the Practices Committee.
100% independent Practices Committee, analyzes the related-party acquisition.
A mandatory fairness opinion and independent appraisal are required before the Practices Committee issues an opinion and recommends the transaction.
The Practices Committee, based on its analysis, issues an opinion and a recommendation to the Technical Committee about the related-party acquisition.
For the acquisition to be completed:
- Approval by the majority of the Technical Committee and
- The favorable vote by the majority of Independent Members of the Technical Committee are needed.
If either of these requirements are not met, the acquisition is discarded.
Commitments and Related-Party Agreement
Whenever the controlling families sell a Real Estate asset, FUNO has the first right to buy it.
Whenever the controlling families wish to acquire an asset, it must be first offered to FUNO.
There is a commitment from the controlling families to transfer all their Real Estate 1 for lease to FUNO.
1 Excludes residential and non-leased real estate.