Corporate governance relates to the activities of the Company's board of directors who are elected by and are accountable to the shareholders, and takes into account the role of management who are employed by Brookfield Real Estate Services Manager Limited (the “Manager”) and charged with the ongoing management of the Company.
Brookfield Real Estate Services Inc.’s Board of Directors encourages sound corporate governance practices that are designed to promote the well-being and ongoing development of the Company, while having the Company’s best interests as its number one objective.
The Board is of the view that the Company's corporate governance policies and practices are comprehensive and consistent with the guidelines for improved corporate governance in Canada as adopted by Canadian Securities Administrators. The Company continues to assess its governance practices and disclosure in relation to evolving Canadian and U.S. guidelines.
The Company’s governance policy includes charters for the Board and for its Standing Committees, the Audit and Governance Committees. The Board believes that Board Committees assist the effective functioning of the Company’s Board of Directors and help ensure that the views of Independent Directors are effectively represented. Only Independent Directors sit on the Board’s Committees.
The Audit Committee’s primary responsibility is to ensure the integrity of the Company’s financial reporting, risk management and internal controls. The Audit Committee has unrestricted access to the Manager’s employees and the Company’s records. In addition, the Audit Committee has direct communication with the Company’s internal and external auditors in order to discuss audit-related matters.
The Governance Committee’s primary responsibility is to review the Manager’s performance, develop the Company’s approach to governance issues, recommend potential Director candidates for nomination to the Board and to review the composition and effectiveness of the Board and the contribution of its Directors periodically. The Governance Committee considers many factors before recommending potential Director candidates for nomination to the board, such as required skill sets that will ensure the Board runs effectively, the size of the Board and the diversity of the Board members.
The Company does not have a written policy or stated target regarding the identification and nomination of female Directors. The Company does recognize the importance of gender diversity on the board as evidenced by the significant representation of female Board members. Specifically, 40 per cent of all Directors, 50 per cent of Independent Directors and 67 per cent of the members of both the Audit and Governance Committee are women.
For more information, please refer to the full text of Brookfield Real Estate Services Inc.’s current Corporate Governance Policy.