Holdco – Christchurch Style

21 Nov

Due to some councillors not running for re-election Christchurch City Holding Limited will have new appointed members from the council.  This snippet I found of interest:

CCHL has four councillor directors and four independents and is the only company in the CCHL group on which councillors sit. The seven trading companies have independent directors.

That would mitigate the behind the scenes dirty deals being done by elected members.

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3 Responses to “Holdco – Christchurch Style”

  1. Philip T November 21, 2013 at 12:21 pm #

    That makes a lot more sense than what happens with Holdco. In effect council is saying their Holdco is nothing more than a small group of delegated councillors who overview their trading companies. The trading companies by having independent directors give the separation that leads to good governance. Will it happen down here. Elder is far to attached to the public teat to give up any money so no things wont change. Also it is so useful politically for some people to be able to gather others under their wing such as the mayor. Nothing like a bribe wrapped in semi legal directorship fees to get people onside

    • Kylie November 21, 2013 at 12:57 pm #

      I always thought the holding company arrangement was to help with the independence of the subsidiaries and to ensure that things were done at arms length. ICC are defeating the whole purpose of a holding company I feel….unless it was set up to fatten wallets and minimise transparency.

  2. Philip T November 21, 2013 at 1:05 pm #

    Yes would have thought the same. In reality they could just have a council sub committee acting instead of a holding company but maybe legal reasons for having an actual entity.
    The whole set up is incestuous but that’s what happens when they try to keep everything in the family

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