GOVERNANCE


Related Party Transactions

Related party transactions (RPTs) are conducted on an arm’s length basis and in a manner that ensures fairness to the company’s best interest, and no less favorable than those generally available to non-related parties under the same or similar circumstances. We require directors and key management personnel to inhibit themselves from participating in discussions on a particular agenda when they are conflicted.

All directors and employees of CHI and its subsidiaries are required to promptly disclose any business and family related transactions to the company and/or its subsidiaries to ensure that potential conflicts of interest are immediately brought to the attention of management. The company also prohibits the grant of loans to directors.

Should there be any related party transaction, it is identified, reviewed, and approved by the Related Party Transactions Review Committee. Material or significant related party transactions will have to be endorsed to the Board for approval. The Board may, at its option, also require that a related party transaction that has been approved be also submitted to the stockholders for consideration and ratification. In 2017, no RPTs were classified as financial assistance to entities other than wholly owned subsidiary companies.

Resolution of Disputes

CHI abides by Republic Act No. 9285, otherwise known as the Alternative Dispute Resolution Act of 2004, as a way to settle disputes without resorting to excessive litigation. The company has a team that handles investor relations to ensure constant engagement with its shareholders. This sets up an avenue to receive feedback, complaints, and queries from shareholders and assures their active participation with regard to activities and policies of the company.