Shareholder Relations
TGH has an active relationship with its sole
Shareholder, Waikato-Tainui Te Kauhanganui
Incorporated. A Statement of Corporate Intent (SCI)
formally documents the necessary understanding
that must exist between TGH and its Shareholder and
is a living representation of the expectations of each
party. Although some of its provisions apply for several
years, the SCI is revised annually.
The SCI sets out TGH’s key objectives, guiding
principle and values. It highlights the importance
of the company’s brand and reputation, provides
fnancial reporting targets and sets out the accounting
policies that will be maintained in accordance with
the relevant statutory provisions. The SCI clarifes the
requirements of the dividend policy. It also requires
Shareholder approval should any capital expenditure,
acquisition or divestment occur that exceeds 30%
of the total assets of the parent entity. Finally, the SCI
outlines the necessary information that TGH must
provide to the Shareholder. A full description of the
SCI can be found on the TGH website.
On an annual basis, TGH and the Shareholder conduct
a joint strategic planning session. Both the TGH Board
and the Shareholder Board fundamentally agree that a
close working relationship should be nurtured to draw
on each other’s respective commercial and social
expertise to progress strategic initiatives.
TGH also provides its Shareholder with corporate
services through a service level agreement which
includes treasury management, fnancial services,
property management and people support services.
The provision of such services by TGH to the
Shareholder creates cost effciencies and cohesion.
The Board of TGH is committed to ensuring
that the members of Waikato-Tainui, through the
tribal parliament, are kept abreast of the ongoing
performance of the company. This is prescribed in the
Charter. TGH’s fnancial results are presented to the
Shareholder’s executive on a monthly basis and to the
tribal parliament every quarter. This is an opportunity
to increase awareness and receive feedback on TGH’s
development projects and its operational performance.
Setting Strategy
The aspirations of Waikato-Tainui span many
generations. The vision and strategy of TGH is
consistent with this long term view. Projects are forecast
well in advance of turning the frst sod. This is achieved
through a concerted and ongoing strategy setting
process which utilises fnancial modeling and business
intelligence tools. At a minimum, TGH maintains a
15 year outlook which recognises the completion of
existing projects (i.e. what we know for sure), and the
initiation of new ones (i.e. unchartered territory).
This process of strategy setting culminates with an
annual, two day meeting with the TGH Board and
senior management. Day one is an opportunity for
senior management to present the strategy, and for
the Board to challenge the proposed direction and
offer guidance where appropriate. The second day
incorporates the Shareholder executive, Te Arataura.
This is a useful opportunity for the Shareholder
representatives to observe the alignment of TGH’s
aspirations, with those of the Shareholder, as stipulated
in the SCI.
Stakeholder Interests
Whilst the Shareholder relationship is paramount,
TGH’s relationships with wider stakeholders,
including the community, customers and suppliers
are considered on
nd
espectively..
TGH’s Communications Policy ensures that a
consistent and credible approach is applied to
communication with all stakeholders.
Audit Committee
All members of the TGH Board are members of the
Audit Committee. The Audit Committee Charter
is incorporated in the Board Charter. The Audit
Committee has continual oversight and responsibility
for fnancial reporting, audit functions, risk
management and internal controls. More specifcally,
the Audit Committee’s objectives include:
Reporting of fnancial information;
•
Application of accounting policies;
•
Financial management;
•
Internal control systems;
•
Risk management systems;
•
Business policies and practices;
•
Protection of the Group’s assets; and
•
Compliance with applicable laws, regulations,
•
standards and fnancial disclosure best practice
guidelines.
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