Governance Expert Says REITs Engaging More with Shareholders

Jim Hanks, a partner at Venable LLP, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Hanks noted that more than 80 percent of REITs are formed under Maryland law. Some of the benefits of incorporating in Maryland include: the absence of a franchise tax; the ability for directors to increase the authorized stock without a shareholder vote; the ability for directors to reverse-split the stock without a stockholder vote; and, a stable statute concerning the duties of a director.