Each Steadfast REIT operates under the direction of a board of directors, whose members are accountable to the respective REIT and its stockholders as fiduciaries.
The board of directors is responsible for the management and control of each REIT’s affairs. Each REIT has retained Steadfast Apartment Advisor, LLC to manage day-to-day affairs and to research, identify, review and make investments in and dispositions of assets consistent with each REIT’s respective investment objectives and strategies—subject to the board of directors’ direction, oversight and approval. The advisor performs its duties and responsibilities as the fiduciary pursuant to an advisory agreement.
All members of the audit committee are “independent” as defined by our charter and the New York Stock Exchange and have significant financial and/or accounting experience. The audit committee assists our board of directors in overseeing and monitoring (1) the systems of our internal accounting and financial controls; (2) our financial reporting processes; (3) the independence, objectivity and qualification of our independent auditors; (4) the annual audit of our financial statements; and (5) our accounting policies and disclosures.
The board of directors delegates to the investment committee certain responsibilities with respect to investment in specific investments proposed by the advisor, and the authority to review investment policies and procedures on an ongoing basis. The investment committee must at all times be comprised of at least three members, a majority of whom must be independent directors.