Investing Wisdom Series 9: Richard Chandler Corporation’s Principles of Good Corporate Governance

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Richard Fred Chandler is a New Zealand born billionaire businessman. He is chairman of the Clermont Group, a Singapore-based business group that invests in public and private companies across a range of industries, including energy, financial services, consumer, and healthcare. Chandler “has a reputation for buying struggling companies and successfully rebuilding them,” according to Australian Broadcasting Corporation News. He also has been known to “take a business approach to philanthropy. His personal net worth ~USD 3.2 Billion.

Richard’s principles of Good Corporate Governance:

  1. Shareholders are owners, with the attendant rights and responsibilities of ownership

  2. Companies should have a democratic capital structure which enshrines the principle of “one share equals one vote.” Shareholders are responsible for electing the board of directors who in turn appoint the company’s management

  3. The board of directors and management are accountable to shareholders for the capital entrusted to them and for their financial and ethical actions

  4. Management’s role is to maximize long-term shareholder value through the productive use of capital and resources in an ethical and socially responsible manner

  5. Management has a Corporate Social Responsibility to respect and nurture the physical, economic, moral, social and regulatory environment within which it operates

  6. Capital is a valuable resource which must be prudently managed. When management cannot deploy capital productively in the business, it should be returned to shareholders for reinvestment

  7. Commerce and capital are based on trust. Capital will naturally flow to markets where there is a fair and impartial application of just laws. The government has a responsibility to create trust-based capital markets which protect investor property rights through the rule of law being applied without discrimination as to race, nationality, religion, gender or affiliation

  8. Prosperity is possible if all market participants work together. This requires responsible investors exercising proper oversight of management, ethical business leadership using capital and resources wisely, and independent regulators applying just laws fairly

 


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