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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
financial reporting targets and sets out the
accounting policies that will be maintained in
accordance with the relevant statutory provisions.
The SCI clarifies 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 TGHmust provide to
the Shareholder. A full description of the SCI can be
found on the TGHwebsite.
On an annual basis, TGH and Te Arataura conduct a
joint strategic planning session. Both the TGHBoard
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 treasurymanagement, financial services,
propertymanagement and people support services.
The provision of such services by TGH to the
Shareholder creates cost efficiencies and cohesion.
The Board of TGH is committed to ensuring that
themembers ofWaikato-Tainui, through the
tribal parliament, are kept abreast of the ongoing
performance of the company. This is prescribed in
the Charter. TGH’s financial results are presented
to the Shareholder’s executive on amonthly 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 spanmany
generations. The vision and strategy of TGH is
consistent with this long termview. Projects are
forecast well in advance of turning the first sod. This
is achieved through a concerted and ongoing strategy
setting process which utilises financial 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 daymeeting with the TGHBoard 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. Te Arataura attends day
two. This is a useful opportunity for the Shareholder
governors 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
respectively.
Audit committee
All members of the TGHBoard are members of the
Audit Committee. The Audit Committee Charter
is incorporated in the Board Charter. The Audit
Committee has continual oversight for financial
reporting, audit functions, riskmanagement and
internal controls. More specifically, the Audit
Committee’s objectives include
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Oversight for reporting of financial information;
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Application of accounting policies;
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Financial management;
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Internal control systems;
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Riskmanagement systems;
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Business policies and practices;
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Protection of the Group’s assets; and
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Compliance with applicable laws, regulations,
standards and financial disclosure best practice
guidelines.
During the year, one meeting was dedicated to Audit
Committee business for the purpose of approving
the annual financial statements. All other Audit
Committee business was addressed at regular Board
meetings.
