Al-`Aqar Healthcare REIT Annual Report 2019

5. COMMITTEES In carrying its functions, the Board is supported by the Audit Committee, Executive Committee and Nomination and Remuneration Committee, all of which operate within defined terms of reference. These committees provide the appropriate checks and balances. 5.1 Audit Committee (AC) A. Membership i. The members of the AC shall be appointed by the Board and shall consist of not less than 3 members. ii. All members must be Non- Executive Directors. iii. All members should be financially literate and at least 1 member must be a member of the Malaysian Institute of Accountants (MIA) or have the relevant qualifications and experience as specified in the Bursa Malaysia Securities Main Market Listing Requirements. iv. The Chairman of the AC elected from amongst the AC members shall be an Independent Director. v. No alternate Director of the Board shall be appointed as a member of the AC. B. Purposes i. To ensure transparency, integrity and accountability in the Fund’s activities so as to safeguard the rights and interests of the unitholders; ii. To provide assistance to the Board in fulfilling its fiduciary responsibilities relating to corporate accounting and reporting practices; iii. To improve the Fund’s business efficiency, the quality of the account and audit function and strengthen public confidence in the Fund’s reported financial results; and iv. To maintain open lines of communication between the Board and Auditors. C. Duties and Responsibilities The objective of the AC is to assist the Board in fulfilling its fiduciary responsibilities relating to corporate governance, internal controls, financial and accounting records and policies as well as financial reporting practices of Al-`Aqar. The AC’s responsibilities include:- i. To review the quarterly and year-end financial statements of the Fund prior to the approval by the Board; ii. To provide an independent assessment of the adequacy and effectiveness of risk management functions; iii. To review the internal audit programme, the results of the internal audit undertaken and ensure that appropriate action is taken on any internal audit issues; iv. To review with external auditors the audit plan, scope of audit and audit reports; and v. To review any related party transactions and conflict of interest situation that may arise. D. Meetings A minimum of 4 meetings shall be planned during the financial year and the quorum for the meeting shall be 2 members. In the absence of the Chairman, the members present shall elect a chairman for the meeting from amongst the members present. Reports of the AC meeting shall be tabled by the AC’s Chairman at the Board of Directors meeting. 5.2 Executive Committee (EC) A. Membership i. The EC shall have at least 3 members, all of whom shall be Non-Executive Directors with the majority being Independent Directors. 05 ESSENCE OF CORPORATE GOVERNANCE 80