The Chubb Corporate Governance Code is a set of:
Principles
- Fundamental rules of ethical behavior
Prescribed applications
- Standards requiring mandatory compliance (or public disclosure in the event of non-compliance)
Best practices
- Desirable practical standards recommended for optimal governance
Where countries within the Asia Pacific region are branch operations and not subsidiaries, and prudential/regulatory authorities do not require the formation of Boards and Audit committees, Chubb’s policy is to form Executive Boards of Management and Executive Audit Committees. The operation, roles and responsibilities of these formal committees of management are generally in line with Boards and Audit Committees.
While it may not be practical to have a majority of independent members, there must be a degree of independence in the composition of each committee.
Thus the overall corporate governance approach is consistent throughout the region, irrespective of the legal structure that may exist in each country. This group corporate governance code is subject to the constitution (or equivalent document) of each individual Chubb entity and to the legalization, regulatory requirements and guidelines prevalent in the jurisdiction where it operates. If there is a conflict between the group corporate governance code and either the Chubb entity's constitution or the local legalization, regulations or guidelines governing such entities, then the group corporate governance policy shall not apply to the extent of such conflict.
The Seven Key Principles of Chubb Corporate Governance are:
- Independence
- Integrity
- Proper oversight
- Accountability
- Strong internal controls
- Transparency
- Deterrence
