Resignations at council investment company suggest 'all is far from well', mayoral hopeful says

Thursday, 8 September 2022

Christchurch City Holdings Ltd chief executive Tim Boyd has quit and will leave in December.

Three resignations in a fortnight at Christchurch City Council’s investment company suggests “all is far from well”, says mayoral candidate David Meates.

Christchurch City Holdings Limited (CCHL) chief executive Tim Boyd has quit over “differences of opinion” with the board, the company has announced to the NZX.

Boyd has only been in the role since March, and his resignation comes just weeks after the board chairperson and a director of the company quit.

“It has become apparent that Tim [Boyd] and the board of CCHL have differences of opinion,” the NZX announcement said.

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David Meates says the resignations suggest “all is far from well with CCHL”.

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Lyttelton Port is just one major asset overseen by the Christchurch City Council’s investment company, CCHL.

It did not explain what the differences of opinion were.

Barry Bragg is one of two directors who have now been appointed to the board.

CCHL is wholly owned by Christchurch City Council and is responsible for overseeing businesses owned by ratepayers, such as Lyttelton Port, lines company Orion and Christchurch Airport. The chief executive role has traditionally had a salary of about $350,000.

“To have a chair, CEO and a key director abruptly resigning and at short notice, suggests that all is far from well with CCHL,” Meates said in a Facebook post.

He said the looming local body election was important for ensuring the future CCHL board “has the appropriate skills and governance competencies in place”.

Jeremy Smith announced he was resigning as CCHL chairperson in late August. Cr James Gough quit as a director hours later.

“It is important that we do not end up with knee-jerk reactions to the current crisis.”

CCHL did not answer questions on Thursday and provided the following statement: “CCHL has made a statement to the NZX and has no further comment at this time as the resignation of Tim Boyd is an employment matter.”

Despite Boyd continuing until December, an interim chief executive, Paul Silk, has been appointed. Silk is a former director of Ngāi Tahu Holdings and has been parachuted in to CCHL.

CCHL said Silk has previously worked closely with the company to provide “commercial advice on a range of major infrastructure projects”.

Christchurch Airport, pictured, is one of the companies overseen by Christchurch City Holdings Ltd.

Boyd took the reins of CCHL in March, replacing Paul Munro, who had been the chief executive for five years.

Last month, BusinessDesk revealed an investigation took place in July relating to communication between Boyd and the CCHL board.

The investigation concluded no action was warranted, CCHL previously said in a statement.

Boyd is the third high-profile figure to leave CCHL in the past month.

In late August, CCHL board chairman Jeremy Smith resigned. The company said it was because re-opened borders meant his “business travel requirements” no longer enabled him to meet “the commitments of the role”.

Just hours after Smith’s announcement, director James Gough – who is a city councillor – resigned, effectively immediately.

CCHL was set up in 1993 to act as a commercial and investment arm of the council. The company is intended to create a non-political buffer between the council and its eight companies.

On Thursday, the city council decided behind closed doors to add two more directors to the CCHL board.

They are Barry Bragg, chairperson of the company delivering Christchurch’s Te Kaha stadium project, and public sector auditing expert Michael Rondel.

Current director Alex Skinner has been appointed interim chairperson.