Half of the Christchurch City Holdings Board abruptly resign following relationship collapse with city council

Phil Mauger was sent the letter of resignation. Photo / George Heard

Four directors of the company which holds more than $5 billion worth of Christchurch’s assets have resigned.

On behalf of the directing chair, Christchurch City Holdings Limited (CCHL) sent Mayor Phil Mauger their shock letter of resignation yesterday.

The resignations included independent directors Chris Day, Abby Foote (chair), Martin Goldfinch and David Hunt.

They said despite their best efforts, the relationship between CCHL and the council had broken down.

The council recently declined CCHL’s recommendation for a move to an active portfolio management model. Council members viewed the proposal as a step towards asset sales - and a move they believed did not prioritise the city’s growth.

Foote said the approach would have lifted dividend flow to the council by $450 million over the next 10 years. As well as enabling debt to be paid down and for capital to be invested in the city for its overall growth.

The council went on to request dividends from CCHL of $55m over the financial year of 2024/2025; $65m in the financial year of 2025/2026, and another $65m in the following financial year. These far exceeded what CCHL said they could sustainably provide.

Foote said they had since lost confidence in the council’s ability to “responsibly own core strategic infrastructure”.

Mauger has since responded to their resignation, saying: “I would like to thank chair Abby Foote and the departing directors for their contribution to CCHL. I wish them all well in their future endeavours. CCHL deputy chair Gill Cox will be the acting chair while the council moves to appoint a new chair. We look forward to continuing to work with the remaining members of the board and the new chair, who will move us forward in the direction set by the council.”

Foote said their differing approaches to risk and investment commitment was far too great.

Bridget Geisen and Gill Cox have confirmed they will continue as directors of CCHL together with the two councillor-appointed directors, Sara Templeton and Sam McDonald.