Governance

Governance

Auckland Regional Holdings is a statutory body, as well as a council-controlled organisation, formed under the Local Government (Auckland) Amendment Act 2004 (LGAAA04). Its governance structure empowers elected representatives of the Auckland Regional Council to appoint Directors to the Board of Auckland Regional Holdings with a balance of skills appropriate to:

Act in the long term interests and for the benefit of the Auckland region; and

Without limiting (a), manage its assets prudently.

The governance procedures gave the Board of Directors and staff the ability to pursue the objectives of the organisation within a strong framework of accountability.

Legislative Framework

Auckland Regional Holdings' structure and operating principles are largely determined by Part 2, Section 19 of the LGAAA04, as well as the Rules of Auckland Regional Holdings as set by the Auckland Regional Council.

The national legislation that governs Auckland Regional Holdings includes:

Local Government (Auckland) Amendment Act 2004

Local Government Act 2002 (principal Act)

Local Authorities (Members Interests) Act 1968

Local Government Official Information and Meetings Act 1987

Local Elections and Polls Act 1976.

Port Companies Act 1988

Income Tax Act 1994

Companies Act 1993

Auckland Regional Holdings is also subject to the commercial, environmental and human resource legislation that affects the operations of all organisations.

In addition, Auckland Regional Holdings' activities are governed by its Statement of Intent (SOI). The SOI is prepared by Auckland Regional Holdings annually for a three-year period, and is approved by the Auckland Regional Council to which it is accountable. The objectives and performance targets in this statement are reported against in this annual report under the 'Statements of Service Performance' section.

GOVERNANCE STRUCTURE

Auckland Regional Holdings has Board of Directors, is accountable to the Auckland Regional Council and has a small team of executive staff.

The roles of the Auckland Regional Council, the Board of Directors and the staff are briefly explained below.

Auckland Regional Council

The Auckland Regional Council appoints the Board of Directors, sets the Rules, and approves the Statement of Intent (SOI) of Auckland Regional Holdings.

Auckland Regional Council negotiates the content of the SOI with Auckland Regional Holdings and monitors its performance within the terms of the performance measures explained in that document.

The Board and staff of Auckland Regional Holdings have a responsibility to keep the Auckland Regional Council informed about its activities, and report to the Auckland Regional Council on a quarterly basis.

The Board of Directors

Part 2, Section 23 of the LGAAA04 governs the Board of Auckland Regional Holdings, as follows:

1. All decisions relating to the operation of Auckland Regional Holdings are to be made by or under the authority of the Board of Auckland Regional Holdings in accordance with the LGAAA04 and Auckland Regional Holdings' SOI;

2. The Board of Auckland Regional Holdings must ensure that Auckland Regional Holdings acts in a manner consistent with its objective;

3. The Board of Auckland Regional Holdings is accountable in accordance with the LGAAA04 and the principal Act for the performance of Auckland Regional Holdings of its functions; and

4. Auckland Regional Council, may by notice in the Gazette, make rules (not inconsistent with the LGAAA04 or any other enactment) specifying the number of Directors and the terms and conditions of their appointment, and the powers and procedure of the Board of Auckland Regional Holdings including, but not limited to, the quorum for board meetings and board committees.

Under the Rules of Auckland Regional Holdings, the number of Directors of the board will not be more than six nor less than four.

The Board of Auckland Regional Holdings has the following six Directors:

Judith Bassett (Chair)

Joce Jesson (Deputy Chair)

Emmet Hobbs

Peter Hubscher

Kerry Stotter (Chair of the Assurance and Risk Committee)

Paul Walbran

The Board of Auckland Regional Holdings is responsible for establishing policy, setting clear objectives and monitoring the business and affairs of Auckland Regional Holdings in accordance with sound business practice.

Generally, the functions of the Board are to:

Set strategic objectives, establish policy and approve major strategies;

Oversee processes for risk management, financial reporting and compliance and ensure they meet the standards of best practice;

Select and review the performance of the Chief Operating Officer and review succession planning; and

Appoint Directors to subsidiary companies.