Corporate Governance

Grand City Properties is wholly committed to stringent standards of ethical behavior and transparency throughout its operations. Its core values of integrity, respect, performance, accountability, and sustainability apply to customers, business partners, and employees alike. These values also form the foundation for the corporate governance structures GCP has implemented to ensure its commitment is upheld.

Sustainable development is a decisive factor for success in the property market, and market-leading corporate governance is a tool for achieving this. Comprehensive compliance is a core tenet of GCP’s risk reduction philosophy. Annual assessments of internal and external compliance risks are used to tailor the company’s management of environmental issues, workplace health and safety topics, and the potential for corruption.

Where our value creation chain is concerned, awareness of our partners’ business practices and contractual commitments to sustainability standards foster comprehensive transparency. The upholding of standards of decent work and respect for human rights are non-negotiable components of GCP’s business premise. Our concrete policies, two-person-assurance structures, and other commitments are presented in our Sustainability Report.

 

More in-depth information on our corporate governance strategy can be found in the Corporate Responsibility Report

Annual General Meeting

The Annual General Meeting takes place on the last Wednesday in the month of June.

Board of Directors

The Company is administered by a Board of Directors, which is vested with the powers to perform and manage in the Company’s best interest.

The Board of Directors represents the shareholders as a whole and makes decisions solely on the Company’s best interest and independently of any conflict of interest. The Board of Directors and senior management regularly evaluate the effective fulfillment of their remit and compliance with strong corporate governance rules. This evaluation is also performed by the Audit Committee and the Risk Committee.

The members of the Board of Directors are elected by the general meeting of the shareholders for a term not exceeding six years and are eligible for re-election. The directors may be dismissed with or without any cause at any time and at the sole discretion of the general meeting of the shareholders. At Grand City Properties S.A., the Board of Directors currently consists of a total of three members, of which two are independent, and resolves on matters on the basis of a simple majority, in accordance with the articles of incorporation. The Board of Directors chooses amongst the directors a chairperson who shall have a casting vote.

More information on "Management"

Internal controls and risk management system

The Company closely monitors and manages potential risks and sets appropriate measures in order to mitigate the occurrence of possible failures to a minimum. The risk management is led by the Risk Committee, which constructs the risk management structure, organization, and processes. The Risk Committee monitors the effectiveness of risk management functions throughout the organization, ensures that infrastructure, resources, and systems are in place for risk management and are adequate to maintain a satisfactory level of risk management discipline. The Company categorizes the risk management systems into two main categories; internal risk mitigation and external risk mitigation.

Internal controls are constructed from four main elements:

Risk assessment – set by the Risk Committee and guided by an ongoing analysis of the organizational structure and by identifying potential weaknesses.

Control discipline – based on the organizational structure and supported by employee and management commitments. The discipline is erected on the foundations of integrity and ethical values.

Control features – the Company sets physical controls, compliance checks, and verifications such as cross-departmental checks. Grand City Properties S.A. puts strong emphasis on separation of duties, as approval and payments are done by at least two separate parties. Payment verification is cross-checked and confirmed with budget and contract. Any payment exceeding a certain set threshold amount requires additional approval by the head of the department as a condition for payment.

Monitoring procedures – the Company monitors and tests unusual entries, mainly through a detailed monthly actual vs.-budget analysis and checks. Strong and sustainable control and organizational systems reduce the probability of errors and mistakes significantly. The management sees high importance in constantly improving all measures, adjusting to market changes and organizational dynamics.

As ordinary course of business, the Company is exposed to various external risks. The Risk Committee is constantly determining whether the infrastructure, resources, and systems are in place and adequate to maintain a satisfactory level of risk. The potential risks and exposures are related, inter alia, to volatility of interest risks, liquidity risks, credit risk, regulatory and legal risks, collection and tenant deficiencies, the need for unexpected capital investments, and market downturn risk.

Grand City Properties S.A. sets direct and specific guidelines and boundaries to mitigate and address each risk, hedging and reducing to a minimum the occurrence of failure or potential default.

Shareholders' rights

The Company respects the rights of all shareholders and ensures that they receive equal treatment. All shareholders have equal voting rights and all corporate publications are transmitted through general publication channels as well as on a specific section on its website. The Company discloses its share ownership and additionally discloses any shareholder structure above 5% when the respective shareholder informs the Company accordingly.

The shareholders of Grand City Properties S.A. exercise their voting rights at the Annual General Meeting of the shareholders, whereby each share is granted one vote. The Annual General Meeting of the shareholders takes place on the last Wednesday of the month of June at 11:00 a.m. at the registered office of the Company, or at such other place as may be specified in the notice of the meeting. If such day is a legal holiday, the Annual General Meeting of the shareholders shall be held on the following business day. At the Annual General Meeting of the shareholders the Board of Directors presents, among others, the management report as well as the statutory and consolidated financial statements to the shareholders.

The Annual General Meeting resolves, among others, on the statutory and consolidated financial statements of Grand City Properties S.A., the allocation of the statutory financial results, the appointment of the approved independent auditor, and the discharge to the (re-)election of the members of the Board of Directors. The convening notice for the Annual General Meeting of the shareholders contains the agenda and is publicly announced twice, with a minimum interval of eight days, and eight days before the meeting in the Mémorial, in a Luxembourg newspaper, and on the Company‘s website.

Bremen
Bremen
Halle
Halle
Berlin
Berlin
Cologne
Cologne
Leipzig
Leipzig