Independent Non-Executive Directors in real estate
Current state and future outlook
Most European stock markets now require company boards to include Independent Non-Executive Directors (INED), and in some cases, the Directors must comprise a majority of the board.
The position for fund structures is much less clear. In Luxembourg, where so many funds are based, real estate structures are not subject to these requirements. Nonetheless, CSSF, the regulator, is definitely encouraging the appointment of non-executives in Luxembourg , and their appointment is considered to be best practice, so their occurrence is becoming increasingly widespread, but, as yet, by no means universal. This seems to be the case in most other European jurisdictions.
REflexions issue 8 - October 2018
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.