Learning Center
Master corporate governance analysis and make better investment decisions. Free educational resources for New Zealand investors.
Guides & Tutorials
What is Good Governance?
5 min read
Learn the fundamentals of corporate governance and why it matters for your investments.
Understanding Board Independence
4 min read
Why independent directors matter and how to identify conflicts of interest.
Reading Insider Trading Signals
6 min read
What director share transactions tell you about company prospects.
How to Read Director Profiles
Video (8 min)
Evaluate director experience, tenure, and board commitments.
Understanding Shareholder Voting
5 min read
Why AGM votes matter and how to interpret voting patterns.
Governance Red Flags
7 min read
Warning signs that indicate poor governance practices.
Governance Glossary
Quick reference guide for corporate governance and investing terms used throughout NZXplorer.
Alpha
The excess return of an investment relative to a benchmark index. Positive alpha indicates outperformance.
Example: If a stock returns 15% while the NZX 50 returns 10%, it has generated 5% alpha.
Board Independence
The percentage of board directors who are independent (no material relationship with the company beyond their directorship).
Example: A board with 6 independent directors out of 8 total has 75% independence.
Governance Score
A 0-100 rating measuring board quality, independence, shareholder support, and pay practices. Higher scores indicate lower governance risk.
Example: Scores 70+ = Good governance, 50-69 = Fair, <50 = Poor
Insider Trading
Share transactions by company directors and executives. Legal when properly disclosed, but timing and volume can signal insider views.
Example: Multiple directors selling shares may indicate concerns about future performance.
Overboarding
When a director serves on too many boards (typically >4-5) to effectively fulfill duties.
Example: A director on 7 boards may lack time for proper oversight of each company.
Resolution
A proposal voted on by shareholders at an AGM, such as director elections or remuneration policies.
Example: Resolution 3: To re-elect Jane Smith as director
Shareholder Support
The percentage of votes "for" a resolution at an AGM. Low support (<80%) indicates shareholder concerns.
Example: A director receiving only 65% support may face performance or independence issues.
Substantial Holder
An investor or entity holding 5% or more of a company's voting rights. Must be disclosed publicly.
Example: ACC holding 8% of Contact Energy makes it a substantial holder.
Tenure
How long a director has served on the board. Very long tenure (>10 years) may reduce independence.
Example: A director with 15 years tenure may be too close to management.
Whale Tracker
Tool tracking large shareholders (institutional investors and funds) and their shareholding changes.
Example: When a major fund increases its stake, it often signals confidence.
Video Tutorials Coming Soon
We're creating video walkthroughs showing you exactly how to:
- •Analyze a company's governance score and what each metric means
- •Use the Whale Tracker to follow institutional investors
- •Interpret director share transactions and insider signals
- •Compare companies side-by-side for investment decisions