Council, 7 September 2006.

Christchurch City Holdings Limited chair succession planning policy

Introduction

(This policy is specifically for the CCHL Board Chair)

In line with best practice, and following development of CCHL's director appointment policy, this policy has been developed and is presented to the Council for consideration and adoption.

The policy follows, to a large extent, CCHL policies for subsidiary companies.


Rationale for a succession plan

To provide for:

  • Smooth transition through a planned approach.
  • Knowledgeable leadership of the board in the event of planned or unexpected retirement of the incumbent Chairperson.
  • Recognition that the term of any chairperson in that role is limited.
  • A Chairperson's desire to step down at any time, knowing that there is a person who is prepared to take over the role.
  • Appointment of a new Chairperson who should generally have knowledge of the 

Principles

  • Directors would generally not be reappointed for more than three (3 year) terms on a board.
  • A person appointed as Chair in their third term may be appointed for a maximum of six years as Chairperson unless in exceptional circumstances as agreed by the shareholder[s].
  • CCHL and Council will generally consider the need for a potential successor as they make each director appointment.
  • The selection process for all CCHL members including the Chair is the prerogative of CCC under the appointment policy.

Process

The Council Appointments Committee (refer Council Policy on Appointment and Remuneration of Directors [PDF, 244 KB]) will work through succession planning for the Chair of CCHL using the following process:

  • Ensure that planning starts at least one year before planned retirement;
  • Discuss with current Chairperson their views on the date of their retirement and who would be a good successor;
  • Compose a list of required skillsets for the position following discussion (as appropriate) with the Chairperson and individual Board members and ascertain whether there is any obvious leader amongst the existing board;
  • Agree a timeframe of the new appointment allowing a bedding-in time of at least one year if the newly proposed Chairperson is new to the Board;
  • Interview/discussions with the preferred candidate to ascertain their availability for the Chairperson role;
  • Preliminary discussions will not guarantee appointment but give an indication that all things being equal, they will be the next 

General skillsets required

  • Able to maintain the trust of the Council;
  • Able to maintain [a] close, but independent, working relationship with [the] CEO;
  • Ability to harness the collective skills of the Board and executive team to achieve the business objectives and maintain the confidence of the shareholders;
  • Ability to encourage all directors to have full participation in Board deliberations;
  • Ability to lead Board evaluation process;
  • Ability to demonstrate leadership and good interpersonal skills;
  • Ability to efficiently conduct Board meetings;
  • Ensure timeliness and relevance of information to the Board;
  • Ability to be the spokesperson for the company;
  • Integrity and credibility within the business community;
  • Ability to retain the confidence of the 'city' and able to build relationships within the city's networks.