Crown Entities Act 2004

1: Title
This Act is the Crown Entities Act 2004.
2: Commencement
1: Section 201
2: The rest of this Act comes into force on 25 January 2005.
1: Preliminary provisions
3: Purpose
The purpose of this Act is to reform the law relating to Crown entities to provide a consistent framework for the establishment, governance, and operation of Crown entities and to clarify accountability relationships between Crown entities, their board members, their responsible Ministers on behalf of the Crown, and the House of Representatives, and, to that end,—
a: to provide for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy):
b: to clarify the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity:
c: to set out reporting and accountability requirements.
4: Application of Acts to Crown entities
1: The rules for the establishment, governance, operation, and accountability of Crown entities are set out in various Acts of Parliament as follows:
a: this Act applies generally to Crown entities:
b: a statutory entity is established by or under the entity's Act, and the entity's Act may supplement, or expressly modify or negate, the provisions of this Act for that entity and its Crown entity subsidiaries:
c: a Crown entity company is incorporated under the Companies Act 1993
d: other Acts (for example, some provisions of the Public Service Act 2020
2: This Act applies to a Crown entity, and prevails over the entity's Act, except to the extent that the entity's Act expressly provides otherwise.
3: Subsection (2) is subject to sections 5 6 Section 4(1)﻿(d) amended 7 August 2020 section 135 Public Service Act 2020
5: Application of this Act to school boards
1: Schedule 3
2: Otherwise this Act does not apply to school boards and their Crown entity subsidiaries. Section 5 replaced 1 August 2020 section 668 Education and Training Act 2020
6: Application of this Act to tertiary education institutions
1: The provisions set out in Part 1
1A: The provisions set out in Part 2 Te Pūkenga—New Zealand Institute of Skills and Technology
1B: For the purpose of applying the provisions referred to in subsection (1A), Te Pūkenga—New Zealand Institute of Skills and Technology
2: Otherwise this Act does not apply to tertiary education institutions and their Crown entity subsidiaries. Section 6(1) amended 1 August 2020 section 668 Education and Training Act 2020 Section 6(1) amended 1 April 2020 section 78(1) Education (Vocational Education and Training Reform) Amendment Act 2020 Section 6(1A) inserted 1 April 2020 section 78(1) Education (Vocational Education and Training Reform) Amendment Act 2020 Section 6(1A) amended 25 September 2020 clause 4(2) Education (Name Change for NZIST) Order 2020 Section 6(1A) amended 1 August 2020 section 668 Education and Training Act 2020 Section 6(1B) inserted 1 April 2020 section 78(1) Education (Vocational Education and Training Reform) Amendment Act 2020 Section 6(1B) amended 25 September 2020 clause 4(2) Education (Name Change for NZIST) Order 2020
7: Meaning of Crown entity and categories of Crown entities
1: In this Act, Crown entity
a: statutory entities: The following table is small in size and has 3 columns. Column 1 is headed What are they? Column 2 is headed Definition. Column 3 is headed Different types. What are they? Definition Different types These are bodies corporate that are established by or under an Act An entity or office named in Schedule 1 Crown agents Part 1 Autonomous Crown entities Part 2 Independent Crown entities Part 3
b: Crown entity companies: The following table is small in size and has 2 columns. Column 1 is headed What are they? Column 2 is headed Definition. What are they? Definition These are companies incorporated under the Companies Act 1993 A company named in Schedule 2
c: Crown entity subsidiaries: The following table is small in size and has 2 columns. Column 1 is headed What are they? Column 2 is headed Definition. What are they? Definition These are companies incorporated under the Companies Act 1993 A company that is—
a: a subsidiary of another Crown entity under sections 5 to 8
b: a multi-parent subsidiary of 2 or more Crown entities
d: school boards: The following table is small in size and has 2 columns. Column 1 is headed What are they? Column 2 is headed Definition. What are they? Definition These are boards that are bodies corporate constituted under the Education and Training Act 2020 A body that is a board constituted under subpart 5 section 196
e: tertiary education institutions: The following table is small in size and has 2 columns. Column 1 is headed What are they? Column 2 is headed Definition. What are they? Definition These are tertiary institutions (for example, universities, Te Pūkenga—New Zealand Institute of Skills and Technology Education and Training Act 2020 An institution established or continued under subparts 3 4
1A: Despite section 5(3)
2: The words in brackets in subsection (1) about the effect of the different types of statutory entities are intended only as a guide. Section 7(1)﻿(c) amended 18 July 2013 section 4(1) Crown Entities Amendment Act 2013 Section 7(1)﻿(d) replaced 1 August 2020 section 668 Education and Training Act 2020 Section 7(1)﻿(e) replaced 1 August 2020 section 668 Education and Training Act 2020 Section 7(1)﻿(e) amended 25 September 2020 clause 4(2) Education (Name Change for NZIST) Order 2020 Section 7(1A) inserted 18 July 2013 section 4(2) Crown Entities Amendment Act 2013
7A: Meaning of multi-parent subsidiary
1: A company is a multi-parent subsidiary sections 5 to 8
a: the company is not a subsidiary of any one Crown entity; but
b: if 2 or more Crown entities were treated as 1 entity (a combined entity
2: Despite section 5(3) Example
Crown entities A, B, and C each own 20% of the issued shares of Company Limited. The remaining issued shares of Company Limited are not owned by Crown entities. Because Crown entities A, B, and C collectively own more than half of the issued shares of Company Limited ( see Section 7A inserted 18 July 2013 section 5 Crown Entities Amendment Act 2013
8: Meaning of parent Crown entity
A Crown entity ( A parent Crown entity parent B
a: A is a statutory entity or Crown entity company or school board
b: B is a subsidiary of A, or a multi-parent subsidiary of A and 1 or more other Crown entities, under the definition of Crown entity subsidiaries in the second column of section 7(1)﻿(c) Section 8 replaced 18 July 2013 section 6 Crown Entities Amendment Act 2013 Section 8(a) amended 1 August 2020 section 668 Education and Training Act 2020
9: Power to amend Schedules 1 and 2
1: The Governor-General may, by Order in Council, amend Schedule 1 Schedule 2
a: add to Schedule 1
b: add to Schedule 2
c: omit the name of a Crown agent from Part 1
d: omit the name of an autonomous Crown entity from Part 2 Part 3
e: omit the name of an entity or company and substitute another name in recognition of a change in the entity's or company's name:
f: omit the name of an entity or company in recognition of the entity's dissolution or the company's removal from the register under the Companies Act 1993
g: remove the exemption for an entity or company from all or any of sections 161 162 163 164
h: exempt an entity or company from all or any of sections 161 162 163 164 165
2: An Order in Council cannot be made under this section in relation to a school board
3: An Order in Council cannot be made under this section to add a Crown entity subsidiary to Schedule 1 Schedule 2
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 9(1)﻿(g) inserted 30 November 2022 section 26 Statutes Amendment Act 2022 Section 9(1)﻿(h) inserted 30 November 2022 section 26 Statutes Amendment Act 2022 Section 9(2) amended 1 August 2020 section 668 Education and Training Act 2020 Section 9(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
10: Interpretation
1: In this Act, unless the context otherwise requires,— appoint
a: in relation to a member, appointment of the member in accordance with the method in section 28 Schedule 5
b: appointment by any other person, by election, by designation, by co-option, or by any other method in or under the entity's Act or constitution autonomous Crown entity Part 2 board
a: means, in relation to a statutory entity that has a board or other governing body under the entity's Act (by whatever name called), members of the entity's board who number not less than the required quorum acting together as a board; and
b: means, in relation to a statutory entity that does not have a board or other governing body under the entity's Act, persons who constitute the entity and who number not less than the required quorum acting together; and
c: means, in relation to a corporation sole, the person who is the sole member of that entity; and
d: in relation to a Crown entity company and Crown entity subsidiary, has the same meaning as in section 127
e: means, in relation to a school board
f: means, in relation to a tertiary education institution, the members of its Council who number not less than the required quorum acting together borrow section 136 class of outputs class section 136 committee clause 14 committee member Crown agent Part 1 Crown entity section 7(1) Crown entity company section 7(1)﻿(b) Crown entity group section 136 Crown entity subsidiary the second column of section 7(1)﻿(c) direction employee
a: includes the chief executive of a Crown entity (by whatever name called) other than for the process of determining terms and conditions in sections 97(i) 116
b: has, for the purposes of sections 120 to 125 section 126 entity's Act
a: in relation to a statutory entity,—
i: the Act by or under which the statutory entity is established; and
ii: if relevant, any other Act that expressly provides for the functions, powers, or duties of the entity (other than this Act); and
b: in relation to a Crown entity company, the Act (if any) that specifically provides for the formation or shareholding of the Crown entity company by Ministers or for its governance, operation, or accountability (but does not include a generic Act, like the Companies Act 1993
c: in relation to a Crown entity subsidiary, the entity's Act of its parent Crown entity; and
d: in relation to a school board or a tertiary education institution, the Education and Training Act 2020 excluded act or omission sections 120 to 126 section 126 fees framework financial year section 136 function
a: in relation to a statutory entity, has the meaning set out in section 14
b: in relation to any other Crown entity—
i: means a function (by whatever name called) to be performed by the Crown entity under the entity's Act or another Act; and
ii: includes any additional function given to the entity by a Minister under another Act in accordance with section 112
iii: includes, in relation to a Crown entity company or a Crown entity subsidiary, its rights, powers, duties, and obligations under its constitution and the Companies Act 1993 section 112
iv: includes, in relation to a Crown entity that does not have an entity's Act, any functions provided for in its statement of intent; and
v: includes any functions that are incidental and related to, or consequential on, its functions in subparagraphs (i) to (iv) generally accepted accounting practice section 136 independent Crown entity Part 3 interested interests section 62 member
a: means, in relation to a statutory entity that has a board or other governing body under the entity's Act, a person who occupies the position of member of the board of the entity (by whatever name called); and
b: means, in relation to a statutory entity that does not have a board or other governing body under the entity's Act, a person who is one of the persons who constitute that entity; and
c: means, in relation to a corporation sole, the person who is the sole member of that entity; and
d: means, in relation to a Crown entity company and Crown entity subsidiary, a director within the meaning of section 126(1)﻿(a)
e: means, in relation to a school board, a member of the board; and
f: means, in relation to a tertiary education institution, a member of its Council; and
g: has, for the purposes of sections 120 to 125 section 126
h: except to the extent that the entity's Act otherwise provides, includes any person appointed or elected under another Act as an alternate member, a deputy member, a co-opted member, a designate for a member, or an acting member Minister monitor section 27A 88A
a: a department (within the meaning of that term in the Public Finance Act 1989
b: another Crown entity multi-parent subsidiary section 7A natural person act section 24 output agreement section 170 outputs section 136 parent Crown entity parent section 8 responsible Minister
a: in relation to a Crown entity company, the Minister of Finance and the other shareholding Minister or Ministers; and
b: in relation to any other Crown entity (other than a Crown entity subsidiary or a tertiary education institution),—
i: a Minister who is expressly specified, in an Act or a warrant or with the authority of the Prime Minister, to be a Minister who is for the time being responsible for the exercise and performance of the functions, powers, and duties of a responsible Minister in relation to the entity; or
ii: if subparagraph (i) does not apply, a Minister who is for the time being responsible, under the authority of an Act or a warrant or with the authority of the Prime Minister, for the administration of the Act, or Part of the Act, by or under which the entity is established; and
c: in relation to a Crown entity subsidiary, a responsible Minister of the parent Crown entity of that Crown entity subsidiary school board section 7(1)﻿(d) shareholding Ministers section 79 statutorily independent function
a: the function must be carried out independently; or
b: Ministers of the Crown may not give directions statutory entity section 7(1)﻿(a) tertiary education institution section 7(1)﻿(e)
2: In this Act, unless the context otherwise requires, references to a person performing functions and exercising powers, or carrying out responsibilities, includes carrying out duties. Section 10(1) board amended 1 August 2020 section 668 Education and Training Act 2020 Section 10(1) Crown entity subsidiary replaced 18 July 2013 section 7(1) Crown Entities Amendment Act 2013 Section 10(1) entity’s Act replaced 1 August 2020 section 668 Education and Training Act 2020 Section 10(1) member replaced 1 August 2020 section 668 Education and Training Act 2020 Section 10(1) monitor inserted 18 July 2013 section 7(2) Crown Entities Amendment Act 2013 Section 10(1) multi-parent subsidiary replaced 18 July 2013 section 7(3) Crown Entities Amendment Act 2013 Section 10(1) parent Crown entity parent amended 18 July 2013 section 7(4) Crown Entities Amendment Act 2013 Section 10(1) school board inserted 1 August 2020 section 668 Education and Training Act 2020 Section 10(1) school board of trustees repealed 1 August 2020 section 668 Education and Training Act 2020
10A: Provisions affecting application of amendments to this Act
Schedule 1AAA see section 199A Section 10A inserted 18 July 2013 section 8 Crown Entities Amendment Act 2013
10B: Status of examples
1: An example used in this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.
2: If an example and a provision to which it relates are inconsistent, the provision prevails. Section 10B inserted 18 July 2013 section 8 Crown Entities Amendment Act 2013
11: Act binds the Crown
This Act binds the Crown.
12: Outline of main Crown entity provisions
1: Part 2 subpart 1 subpart 2 subpart 3
2: Part 3
a: what directions the Government can give to Crown entities:
b: to what extent members, employees, committee members, and office holders are immune from liability in legal proceedings or may be reimbursed for costs incurred in settling claims or in proceedings:
c: employees and compliance with the requirements of being a good employer and providing equal employment opportunities:
d: how Crown entities deal with third parties.
3: Part 4 financial products, borrowing
4: Part 5
5: Schedules 1 2
6: Schedules 3 4
7: Schedule 5
8: Subsections (1) to (7) are only a guide to the general scheme and effect of this Act. Section 12(3) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 12(6) amended 1 August 2020 section 668 Education and Training Act 2020
2: Establishment and governance of Crown entities
1: Statutory entities
Establishment of statutory entity
13: Establishment of statutory entity
A statutory entity is established by or under an Act other than this Act.
14: Functions
1: The functions of a statutory entity are—
a: the functions set out in the entity's Act; and
b: if the entity's Act gives the responsible Minister power to add functions, any other functions that the responsible Minister may direct the entity to perform in accordance with that Act and section 112
c: any functions that are incidental and related to, or consequential on, its functions set out in paragraphs (a) and (b).
2: In performing its functions, a statutory entity must act consistently with its objectives.
15: Status of statutory entity
A statutory entity—
a: is a body corporate; and
b: is accordingly a legal entity separate from its members, office holders, employees, and the Crown; and
c: continues in existence until it is dissolved by an Act.
16: Core things statutory entities can do
A statutory entity may do anything authorised by this Act or the entity's Act.
17: Other things statutory entities can do
1: A statutory entity may do anything that a natural person of full age and capacity may do.
2: Subsection (1) applies except as provided in this Act or another Act or rule of law.
18: Acts must be for purpose of functions
A statutory entity may do an act under section 16 section 17 Validity of acts
19: Acts in breach of statute are invalid
1: An act of a statutory entity is invalid, unless section 20
a: an act that is contrary to, or outside the authority of, an Act; or
b: an act that is done otherwise than for the purpose of performing its functions.
2: Subsection (1) does not limit any discretion of a court to grant relief in respect of a minor or technical breach.
20: Some natural person acts protected
1: Section 19
a: of an express restriction in an Act that makes the act contrary to, or outside the authority of, the Act; or
b: that the act is done otherwise than for the purpose of performing the entity's functions.
2: A person who relies on subsection (1) has the onus of proving that that person did not have, and ought not reasonably to have had, the knowledge referred to in that subsection.
3: A statutory entity must report, in its annual report, each transaction that the entity has performed in the year to which the report relates that was invalid under section 19
4: For the avoidance of doubt, this section does not affect any person's other remedies (for example, remedies in contract) under the general law.
21: Limits on protection of natural person acts
Section 20
a: section 60
b: the board of the statutory entity bringing an action against a member who voted for or otherwise authorised the act for breach of his or her individual duties as a member; or
c: a member who voted for or otherwise authorised the act being removed from office for breach of the individual duties of members or the collective duties of the board; or
d: an application, in accordance with the law, for judicial review; or
e: section 69
22: Acts that are not in best interests of statutory entity
It is irrelevant to the validity of an act that the act is not, or would not be, in the best interests of a statutory entity. 1993 No 105 s 17(3)
23: Dealings between statutory entities and other persons
1: A statutory entity may not assert against a person dealing with the entity that—
a: a person held out by the statutory entity to be a member, office holder, chief executive, employee, or agent of the statutory entity (as the case may be)—
i: has not been duly appointed in that capacity or has ceased to be appointed in that capacity; or
ii: does not have the authority to exercise a power which, given the nature of the statutory entity, a person appointed to that capacity customarily has authority to exercise; or
iii: does not have the authority to exercise a power that the statutory entity holds him or her out as having; or
b: a document issued on behalf of the entity by a member, office holder, chief executive, employee, or agent of the entity with actual or usual authority to issue the document is not valid or genuine.
2: However, a statutory entity may assert any of those matters if the person dealing with the statutory entity had, or ought reasonably to have had, knowledge of the matter.
3: Nothing in this section affects a person's right to apply, in accordance with the law, for judicial review. 1993 No 105 s 18
24: Interpretation
In sections 15 to 23 act do
a: to do an act; and
b: to have a capacity; and
c: to have or exercise a power, right, or privilege natural person act
a: means an act that a natural person of full age and capacity can do (whether or not the act is something that is also authorised by an Act); and
b: includes entry into a contract for, or relating to,—
i: acquisition of financial products or borrowing:
ii:
iii: the purchase, leasing, or sale of, or other dealings with, property:
iv: the employment, or engagement of the services, of a person person dealing
a: means the other party to the transaction, if the act of the statutory entity is a transaction; and
b: includes a person who has acquired property, rights, or interests from a statutory entity. Section 24 natural person act replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 24 natural person act repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Role and accountability of members
25: Board's role
1: The board is the governing body of a statutory entity, with the authority, in the entity's name, to exercise the powers and perform the functions of the entity.
2: All decisions relating to the operation of a statutory entity must be made by, or under the authority of, the board in accordance with this Act and the entity's Act.
26: Accountability of members to responsible Minister
1: Members of a statutory entity must comply with—
a: the board's collective duties (in sections 49 to 52
b: their individual duties as members (in sections 53 to 57
c: any directions applicable to the entity under subpart 1
2: Members are accountable to the responsible Minister for performing their duties as members. Responsible Minister's role
27: Responsible Minister's role
1: The role of the responsible Minister is to oversee and manage the Crown's interests in, and relationship with, a statutory entity and to exercise any statutory responsibilities given to the Minister, including functions
a: in relation to the appointment and removal of members under this subpart:
b: to determine the remuneration of some members under this Part:
c: in relation to the giving of directions to the entity under subpart 1
d: to review the operations and performance of the entity under subpart 3
e: to request information from the entity under subpart 3
f: to participate in the process of setting the entity's strategic direction and performance expectations and monitoring the entity's performance under Part 4
g: in relation to other matters in this Act or another Act.
2: This section does not limit another Minister's relationship with the statutory entity under any other authority.
3: Despite clause 5 subsection (4)
4: The responsible Minister may delegate the power in section 133 Section 27(1) amended 18 July 2013 section 9(1) Crown Entities Amendment Act 2013 Section 27(1)﻿(f) replaced 1 July 2014 section 43 Crown Entities Amendment Act 2013 Section 27(3) inserted 18 July 2013 section 9(2) Crown Entities Amendment Act 2013 Section 27(3) amended 7 August 2020 section 135 Public Service Act 2020 Section 27(4) inserted 18 July 2013 section 9(2) Crown Entities Amendment Act 2013 Monitor's role Heading inserted 18 July 2013 section 10 Crown Entities Amendment Act 2013
27A: Monitor's role
The role of the monitor is, in relation to the monitored statutory entity,—
a: to assist the responsible Minister to carry out his or her role (which is described in section 27
b: to perform or exercise any or all of the following functions, duties, or powers:
i: administering appropriations:
ii: administering legislation:
iii: tendering advice to Ministers:
iv: any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor. Section 27A inserted 18 July 2013 section 10 Crown Entities Amendment Act 2013 Appointment, removal, and conditions of members
28: Method of appointment of members
1: A member of a statutory entity is appointed by—
a: the responsible Minister, in the case of a member of a Crown agent or autonomous Crown entity; or
b: the Governor-General, on the recommendation of the responsible Minister, in the case of a member of an independent Crown entity.
2: The appointment must be made by written notice to the member (with a copy to the entity).
3: The notice must—
a: state the date on which the appointment takes effect which must not be earlier than the date on which the notice is received; and
b: state the term of the appointment
c:
4: The responsible Minister must ensure that the following are notified in the Gazette
a: the name of the appointee and the statutory entity; and
b: the date on which the appointment takes effect; and
c: the term of the appointment. Section 28(3)﻿(b) amended 7 July 2010 section 4(1) Crown Entities Amendment Act 2010 Section 28(3)﻿(c) repealed 7 July 2010 section 4(1) Crown Entities Amendment Act 2010 Section 28(4) added 7 July 2010 section 4(2) Crown Entities Amendment Act 2010
29: Criteria for appointments or recommendations by responsible Minister
1: A responsible Minister of a statutory entity must appoint, or recommend the appointment of, members under section 28
2: A responsible Minister—
a: may only appoint or recommend a person who, in the responsible Minister's opinion, has the appropriate knowledge, skills, and experience to assist the statutory entity to achieve its objectives and perform its functions; and
b: subject to subsection (1), in appointing or recommending an appointment, must take into account the desirability of promoting diversity in the membership of Crown entities.
30: Qualifications of members
1: A natural person who is not disqualified by this section may be a member of a statutory entity.
2: The following persons are disqualified from being members:
a: a person who is an undischarged bankrupt:
b: a person who is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993 Financial Markets Conduct Act 2013 Takeovers Act 1993
c: a person who is subject to a property order under the Protection of Personal and Property Rights Act 1988
d: a person in respect of whom a personal order has been made under that Act that reflects adversely on the person's—
i: competence to manage his or her own affairs in relation to his or her property; or
ii: capacity to make or to communicate decisions relating to any particular aspect or aspects of his or her personal care and welfare:
e: a person who has been convicted of an offence punishable by imprisonment for a term of 2 years or more, or who has been sentenced to imprisonment for any other offence, unless that person has obtained a pardon, served the sentence, or otherwise suffered the penalty imposed on the person:
f: a member of Parliament:
g: a person who is disqualified under another Act.
3: However, subsection (2)﻿(f) does not disqualify a person who is elected (rather than appointed) to office as a member under any other Act. Section 30(2)﻿(b) substituted 25 October 2006 section 25 Securities Amendment Act 2006 Section 30(2)﻿(b) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
31: Requirements before appointment
1: Before a person is appointed as a member of a statutory entity, the person must—
a: consent in writing to being a member; and
b: certify that he or she is not disqualified from being a member; and
c: disclose to the responsible Minister the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the statutory entity.
2: The board of the entity must notify the responsible Minister of a failure to comply with subsection (1)﻿(c) as soon as practicable after becoming aware of the failure.
32: Term of office of members
1: A member of a statutory entity holds office for—
a: 3 years or any shorter period stated in the notice of appointment, in the case of a member of a Crown agent or autonomous Crown entity; or
b: 5 years or any shorter period stated in the notice of appointment, in the case of a member of an independent Crown entity.
2: A member may be reappointed.
3: A member continues in office despite the expiry of his or her term of office until—
a: the member is reappointed; or
b: the member's successor is appointed; or
c: the appointor informs the member by written notice (with a copy to the entity) that the member is not to be reappointed and no successor is to be appointed at that time.
4: This section is subject to section 45
33: Elected, co-opted, etc, members
1: Sections 28 29 31(1)﻿(a) and (b) 32
2: Section 31(1)﻿(c)
34: Validity of members' acts
The acts of a person as a member, chairperson, or deputy chairperson of a statutory entity are valid even though—
a: a defect existed in the appointment of the person; or
b: the person is or was disqualified from being a member; or
c: the occasion for the person acting, or for his or her appointment, had not arisen or had ended.
35: Validity of appointments
1: The appointment of a person as a member, chairperson, or deputy chairperson of a statutory entity is not invalid only because a defect existed in the appointment of the person.
2: This section does not apply to—
a: a defect in the qualifications for appointment of a member, chairperson, or deputy chairperson; or
b: a member of a statutory entity who is appointed under the entity's Act by election.
36: Removal of members of Crown agents
1: The responsible Minister may, at any time and entirely at his or her discretion, remove a member of a Crown agent from office.
2: The removal must be made by written notice to the member (with a copy to the entity).
3: The notice must state the date on which the removal takes effect, which must not be earlier than the date on which the notice is received.
4: The responsible Minister must notify the removal in the Gazette
5: This section does not apply to a member appointed by election under the entity's Act.
37: Removal of members of autonomous Crown entities
1: The responsible Minister may, at any time and for any reason that in the Minister's opinion justifies the removal, remove a member of an autonomous Crown entity from office.
2: The removal must be made by written notice to the member (with a copy to the entity).
3: The notice must—
a: state the date on which the removal takes effect, which must not be earlier than the date on which the notice is received; and
b: state the reasons for the removal.
4: The responsible Minister must notify the removal in the Gazette
5: This section does not apply to a member appointed by election under the entity's Act.
38: Removal of elected members of Crown agents and autonomous Crown entities
1: The responsible Minister may, at any time for just cause, remove a member appointed by election to a Crown agent or autonomous Crown entity from office.
2: The removal must be made by written notice to the member (with a copy to the entity).
3: The notice must—
a: state the date on which the removal takes effect which must not be earlier than the date on which the notice is received; and
b: state the reasons for the removal.
4: The responsible Minister must notify the removal in the Gazette
39: Removal of members of independent Crown entities
1: The Governor-General may, at any time for just cause, on the advice of the responsible Minister given after consultation with the Attorney-General, remove a member of an independent Crown entity from office.
2: The removal must be made by written notice to the member (with a copy to the entity).
3: The notice must—
a: state the date on which the removal takes effect which must not be earlier than the date on which the notice is received; and
b: state the reasons for the removal.
4: The responsible Minister must notify the removal in the Gazette
40: Just cause
In sections 38 39 just cause
41: Process for removal
A responsible Minister may remove, or advise the removal of, a member, as the case may be, with as little formality and technicality, and as much expedition, as is permitted by—
a: the principles of natural justice; and
b: a proper consideration of the matter; and
c: the different requirements of this Act in relation to the different types of statutory entity.
42: Judges serving as members
1: This section applies to a Judge who is a member of a statutory entity, except as otherwise provided in the entity's Act.
2: The Judge may be removed as a member in accordance with the removal provisions of this Act for a breach of the board's collective duties, but only if all of the other members are being removed for the same breach at the same time.
3: That removal does not affect his or her tenure as a Judge.
4: The Judge may not be removed as a member in accordance with any other removal provisions of this Act.
5: The Judge may be removed as a member at any time under the general law that applies to removal from office as a Judge.
43: No compensation for loss of office
A member of a statutory entity is not entitled to any compensation or other payment or benefit relating to his or her ceasing, for any reason, to hold office as a member.
44: Resignation of members
1: A member of a statutory entity may resign from office by written notice to the responsible Minister (with a copy to the entity) signed by the member.
2: The resignation is effective on receipt by the responsible Minister of the notice or at any later time specified in the notice.
45: Members ceasing to hold office
A member of a statutory entity ceases to hold office if he or she—
a: resigns in accordance with section 44
b: is removed from office in accordance with sections 36 to 39
c: becomes disqualified from being a member under any of paragraphs (a) to (g) of section 30(2)
d: otherwise ceases to hold office in accordance with any enactment.
46: Member of corporation sole not to hold concurrent office
The member of a corporation sole must not, without the prior approval of the responsible Minister, hold any office of trust or profit or engage in any occupation for reward outside his or her responsibilities as a member of the corporation sole. Remuneration and expenses
47: Remuneration of members
1: A member of a statutory entity is entitled to receive, from the funds of the entity, remuneration not within section 48
a: the responsible Minister, in the case of a member of a Crown agent or autonomous Crown entity, in accordance with the fees framework; or
b: the Remuneration Authority in accordance with the Remuneration Authority Act 1977
i: a member of an independent Crown entity; or
ii: a member of a Crown agent or autonomous Crown entity that is a corporation sole.
2: The following office holders are not entitled to any remuneration for services as a member of the statutory entity in addition to his or her remuneration in respect of that office:
a: a Judge:
b: a member of Parliament:
c: an employee (including a chief executive) within any part of the State services who is acting as a member of the statutory entity as a representative of all or any part of the State services.
48: Expenses of members
A member of a statutory entity is entitled, in accordance with the fees framework, to be reimbursed, out of the funds of the entity, for actual and reasonable travelling and other expenses incurred in carrying out his or her office as a member. Collective duties of board
49: Entity must act consistently with objectives, functions, statement of intent, and
statement of performance expectations The board of a statutory entity must ensure that the entity acts in a manner consistent with its objectives, functions, current statement of intent, and current statement of performance expectations Part 4 Section 49 heading amended 1 July 2014 section 44(1) Crown Entities Amendment Act 2013 Section 49 amended 1 July 2014 section 44(2) Crown Entities Amendment Act 2013
50: Manner in which functions must be performed
The board of a statutory entity must ensure that the statutory entity performs its functions—
a: efficiently and effectively; and
b: in a manner consistent with the spirit of service to the public; and
c: in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001 Section 50 replaced 18 July 2013 section 11 Crown Entities Amendment Act 2013
51: Entity must operate in financially responsible manner
The board of a statutory entity must ensure that the entity operates in a financially responsible manner and, for this purpose, that it—
a: prudently manages its assets and liabilities; and
b: endeavours to ensure—
i: its long-term financial viability; and
ii: that it acts as a successful going concern.
52: Subsidiaries and other interests
The board of a statutory entity must ensure that the entity complies with sections 96 to 101 Individual duties of members
53: Duty to comply with this Act and entity's Act
A member of a statutory entity must not contravene, or cause the contravention of, or agree to the entity contravening, this Act or the entity's Act.
54: Duty to act with honesty and integrity
A member of a statutory entity must, when acting as a member, act with honesty and integrity.
55: Duty to act in good faith and not at expense of entity's interests
A member of a statutory entity must, when acting as a member, act in good faith and not pursue his or her own interests at the expense of the entity's interests.
56: Duty to act with reasonable care, diligence, and skill
A member of a statutory entity must, when acting as a member, exercise the care, diligence, and skill that a reasonable person would exercise in the same circumstances, taking into account (without limitation)—
a: the nature of the statutory entity; and
b: the nature of the action; and
c: the position of the member and the nature of the responsibilities undertaken by him or her.
57: Duty not to disclose information
1: A member of a statutory entity who has information in his or her capacity as a member that would not otherwise be available to him or her must not disclose that information to any person, or make use of, or act on, that information, except—
a: in the performance of the entity's functions; or
b: as required or permitted by law; or
c: in accordance with subsection (2); or
d: in complying with the requirements for members to disclose interests.
2: A member may disclose, make use of, or act on the information if—
a: the member is first authorised to do so by the board or, in the case of a corporation sole, by the responsible Minister; and
b: the disclosure, use, or act in question will not, or will be unlikely to, prejudice the entity. Effect of non-compliance with duties
58: Accountability for collective board duties
1: The duties of the board and members of a statutory entity under sections 49 to 52 collective duties
2: If a board does not comply with any of its collective duties, all or any of the members may be removed from office (subject to any requirements in sections 36 to 42
3: However, subsection (2) does not apply to a member (other than the member of a corporation sole) if—
a: he or she did not know and could not reasonably be expected to know that the duty was to be or was being breached; or
b: he or she took all reasonable steps in the circumstances to prevent the duty being breached.
4: The taking of reasonable steps does not require a member to apply to a court for an order under section 60
5: A member is not liable for a breach of a collective duty under this Act.
6: However, subsection (5) does not limit subsection (2).
7: This section does not affect any other ground for removing a member from office.
8: Subsection (5) does not affect—
a: anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
b: the right to apply for a court order under section 60
59: Accountability for individual duties
1: The duties of the members of a statutory entity under sections 53 to 57 individual duties
2: If a member does not comply with his or her individual duties, that member may be removed from office (subject to any requirements in sections 36 to 42
3: A statutory entity may bring an action against a member for breach of any individual duty.
4: Except as provided in subsections (2) and (3), a member is not liable for a breach of an individual duty under this Act.
5: This section does not affect any other ground for removing a member from office.
6: Subsection (4) does not affect—
a: anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
b: the right to apply for a court order under section 60
60: Court actions requiring or restraining board or members
1: A responsible Minister or a member of a statutory entity may apply to a court for an order—
a: restraining the board or a member of the board from engaging in conduct that would contravene any requirement under this Act or the entity's Act; and
b: granting any consequential relief.
2: A responsible Minister may apply to a court for an order—
a: requiring the board or a member to take any action that is required to be taken under this Act or the entity's Act:
b: granting any consequential relief.
3: The court may make an order on the application subject to the following rules:
a: an order may be made only if it is just and equitable to do so:
b: no order may be made in respect of conduct that has been completed.
4: The court may, at any time before the final determination of an application under this section, make as an interim order any order that it is empowered to make as a final order.
5: This section is subject to section 113 Reliance on information and advice
61: When members may rely on certain information and advice
1: A member, when acting as a member, may rely on reports, statements, financial data, and other information prepared or supplied, and on professional or expert advice given, by any of the following persons:
a: an employee of the statutory entity whom the member believes on reasonable grounds to be reliable and competent in relation to the matters concerned:
b: a professional adviser or expert in relation to matters that the member believes on reasonable grounds to be within the person's professional or expert competence:
c: any other member or a committee on which the member did not serve in relation to matters within the member's or committee's designated authority.
2: A member, when acting as a member, may rely on reports, statements, financial data, and other information supplied by the Crown.
3: This section applies to a member only if the member—
a: acts in good faith; and
b: makes proper inquiry if the need for inquiry is indicated by the circumstances; and
c: has no knowledge that the reliance is unwarranted. Conflict of interest disclosure rules
62: When interests must be disclosed
1: In this section, matter
a: a statutory entity's performance of its functions or exercise of its powers; or
b: an arrangement, agreement, or contract made or entered into, or proposed to be entered into, by the entity.
2: A person is interested
a: may derive a financial benefit from the matter; or
b: is the spouse, civil union partner, de facto partner
c: may have a financial interest in a person to whom the matter relates; or
d: is a partner, director, officer, board member, or trustee of a person who may have a financial interest in a person to whom the matter relates; or
e: may be interested in the matter because the entity's Act so provides; or
f: is otherwise directly or indirectly interested in the matter.
3: However, a person is not interested in a matter—
a: only because he or she is a member or an officer of a wholly-owned subsidiary of the entity or of a multi-parent subsidiary of the entity and 1 or more other Crown entities
b: because he or she receives an indemnity, insurance cover, remuneration, or other benefits authorised under this Act or another Act; or
c: if his or her interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence him or her in carrying out his or her responsibilities under this Act or another Act; or
ca: only because he or she has past or current involvement in the relevant sector, industry, or practice; or
d: if an entity's Act provides that he or she is not interested, despite this section. Section 62(2)﻿(b) amended 26 April 2005 section 7 Relationships (Statutory References) Act 2005 Section 62(3)﻿(a) amended 18 July 2013 section 12(1) Crown Entities Amendment Act 2013 Section 62(3)﻿(ca) inserted 18 July 2013 section 12(2) Crown Entities Amendment Act 2013
63: Obligation to disclose interest
1: A member who is interested in a matter relating to the statutory entity must disclose details of the interest in accordance with section 64
2: A general notice of an interest in a matter relating to the statutory entity, or in a matter that may in future relate to the entity, that is disclosed in accordance with section 64
3: A standing disclosure ceases to have effect if the nature of the interest materially alters or the extent of the interest materially increases.
64: Who disclosure of interests must be made to
The member must disclose details of the interest in an interests register kept by the statutory entity and to—
a: the chairperson or, if there is no chairperson or if the chairperson is unavailable or interested, the deputy or temporary deputy
b: the responsible Minister, if there is neither a chairperson nor a deputy or temporary deputy deputy Section 64(a) amended 18 July 2013 section 13 Crown Entities Amendment Act 2013 Section 64(b) amended 18 July 2013 section 13 Crown Entities Amendment Act 2013
65: What must be disclosed
The details that must be disclosed under section 64
a: the nature of the interest and the monetary value of the interest (if the monetary value can be quantified); or
b: the nature and extent of the interest (if the monetary value cannot be quantified).
66: Consequences of being interested in matter
A member who is interested in a matter relating to a statutory entity—
a: must not vote or take part in any discussion or decision of the board or any committee relating to the matter, or otherwise participate in any activity of the entity that relates to the matter; and
b: must not sign any document relating to the entry into a transaction or the initiation of the matter; and
c: is to be disregarded for the purpose of forming a quorum for that part of a meeting of the board or committee during which a discussion or decision relating to the matter occurs or is made.
67: Consequences of failing to disclose interest
1: The board must notify the responsible Minister of a failure to comply with section 63 section 66
2: A failure to comply with section 63 section 66
3: However, subsection (2) does not limit the right of any person to apply, in accordance with law, for judicial review.
68: Permission to act despite being interested in matter
1: The chairperson of a statutory entity may, by prior written notice to the board, permit 1 or more members, or members with a specified class of interest, to do anything otherwise prohibited by section 66
2: The permission may state conditions that the member must comply with.
3: The deputy or temporary deputy
4: The responsible Minister may give the permission if there is neither a chairperson nor a deputy or temporary deputy deputy
5: The permission may be amended or revoked in the same way as it may be given.
6: The board must disclose an interest to which a permission relates in its annual report, together with a statement of who gave the permission and any conditions or amendments to, or revocation of, the permission. Section 68(3) amended 18 July 2013 section 14 Crown Entities Amendment Act 2013 Section 68(4) amended 18 July 2013 section 14 Crown Entities Amendment Act 2013
69: Entity may avoid certain acts done in breach of conflict of interest rules
1: A statutory entity may avoid a natural person act done by the entity in respect of which a member was in breach of section 66
2: However, the act—
a: may be avoided only within 3 months of the affected act being disclosed to the responsible Minister under section 67
b: cannot be avoided if the entity receives fair value in respect of the act.
3: An act in which a member is interested can be avoided on the ground of the member's interest only in accordance with this section. 1993 No 105 s 141(1), (2), (6)
70: What is fair value
1: The entity is presumed to receive fair value in respect of an act that is done by the entity in the ordinary course of its business and on usual terms and conditions.
2: Whether an entity receives fair value in respect of an act must be determined on the basis of the information known to the entity and to the interested member at the time the act is done. 1993 No 105 s 141(3), (4)
71: Onus of proving fair value
1: A person seeking to prevent an act being avoided, and who knew, or ought reasonably to have known, of the member's interest at the time the act was done, has the onus of establishing fair value.
2: In any other case, the entity has the onus of establishing that it did not receive fair value. 1993 No 105 s 141(5)
72: Effect of avoidance on third parties
The avoidance of an act under section 69
a: from a person other than the entity; and
b: for valuable consideration; and
c: without knowledge of the circumstances of the act under which the person referred to in paragraph (a) acquired the property from the entity. Delegation
73: Ability to delegate
1: The board of a statutory entity may delegate any of the functions or powers of the entity or the board, either generally or specifically, to any of the following persons by resolution and written notice to the person or persons:
a: a member or members:
b: the chief executive or any other employee or employees, or office holder or holders, of the entity:
c: a committee:
d: any other person or persons approved by the entity's responsible Minister:
e: any class of persons comprised of any of the persons listed in paragraphs (a) to (d):
f: a Crown entity subsidiary of the statutory entity.
2: Subsection (1) does not apply to any functions or powers specified in the entity's Act as not being capable of delegation.
3: Subsection (1)﻿(f) does not apply to any of the statutory entity's statutorily independent functions.
4: The board must not delegate the general power of delegation. 1988 No 20 ss 28 41(1) s 130
74: Powers of delegate
1: A delegate to whom any functions or powers of a statutory entity or board are delegated—
a: may, unless the delegation provides otherwise, perform the function or exercise the power in the same manner, subject to the same restrictions, and with the same effect as if the delegate were the entity or the board; and
b: may delegate the function or power only—
i: with the prior written consent of the board; and
ii: subject to the same restrictions, and with the same effect, as if the subdelegate were the delegate.
2: A delegate who purports to perform a function or exercise a power under a delegation—
a: is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and
b: must produce evidence of his or her authority to do so, if reasonably requested to do so. 1988 No 20 s 41(2), (3), (4)
75: Effect of delegation on entity or board
No delegation in accordance with this Act or the entity's Act—
a: affects or prevents the performance of any function or the exercise of any power by the entity or the board; or
b: affects the responsibility of the board for the actions of any delegate acting under the delegation; or
c: is affected by any change in the membership of the board or of any committee or class of persons or by any change in an office holder, chief executive, or employee. 1988 No 20 ss 41(7) 42(2)
76: Revocations of delegations
1: A delegation under section 73
a: resolution of the board and written notice to the delegate; or
b: any other method provided for in the delegation.
2: A delegation under section 74(1)﻿(b) 1988 No 20 s 42 Miscellaneous provisions relating to board
77: Vacancies in membership of board
The powers and functions of a statutory entity are not affected by any vacancy in the membership of its board.
78: Appointment of chairperson, etc, and board The provisions set out in Schedule 5 the appointment of a chairperson and deputy chairperson (including a temporary deputy chairperson) and Section 78 heading amended 18 July 2013 section 15(1) Crown Entities Amendment Act 2013 Section 78 amended 18 July 2013 section 15(2) Crown Entities Amendment Act 2013
2: Crown entity companies
Formation and shareholding of Crown entity companies
79: Formation and acquisition of shares in Crown entity companies
1: Shares in a Crown entity company may be subscribed for, or otherwise acquired, on behalf of the Crown only by 2 or more Ministers.
2: One of those shareholding Ministers must be the Minister of Finance.
3: Each shareholding Minister of a Crown entity company must always hold the same number of shares in the Crown entity company as each other shareholding Minister of that Crown entity company.
4: This section does not limit the Crown's ability to subscribe for, or otherwise acquire, shares in a company that is not a Crown entity company.
5: This section applies also to a company that is being formed with the intention of becoming a Crown entity company, despite the fact that the company is not yet named in Schedule 2
80: Restrictions relating to shares in Crown entity companies
1: No Minister may—
a: sell or otherwise dispose of any shares in a Crown entity company held in the Minister's name; or
b: permit shares in a Crown entity company to be allotted or issued to any person other than a shareholding Minister.
2: However, despite subsection (1)﻿(a), a Minister may dispose of shares—
a: as part of a reconstruction or merger in which the Crown's interest in the shares of the company is not diluted; or
b: if an Act authorises the transfer of ownership of shares of a Crown entity company.
3: Subsection (1) does not apply to redeemable preference shares that—
a: are not convertible into shares of any other class; and
b: do not confer any rights to vote at any general meeting of the company. 1986 No 124 s 11
81: Crown entity company must have constitution stating it is Crown entity
A Crown entity company must have a constitution, and the constitution must contain a statement to the effect that the company is a Crown entity for the purposes of this Act.
82: Constitution must be presented to House of Representatives
A shareholding Minister of a Crown entity company must present the constitution of the company, and any changes to the constitution and any replacement constitution, to the House of Representatives as soon as practicable after the date on which the company becomes a Crown entity company, or the date of the change or replacement, whichever is applicable.
83: Shares to be held by person holding office as Minister
1: Shares in a Crown entity company held in the name of a person described as a Minister are to be held by the person for the time being holding the office of that Minister.
2: It is not necessary to complete or register a transfer of shares in a Crown entity company held in the name of a person described as a Minister upon a change in the person holding that office.
3: Subsection (2) applies despite any other enactment or rule of law.
84: Appointment of representative of shareholding Minister
1: A shareholding Minister of a Crown entity company may, by written notice to a Crown entity company, authorise (on the terms specified in the notice) a person to act as the shareholding Minister's representative at any or all of the meetings of shareholders of the company or of any class of those shareholders.
2: Any person authorised under subsection (1) is entitled to exercise the same powers on behalf of the shareholding Minister as the shareholding Minister could exercise if present in person at the meeting or meetings.
3: This section applies despite any other enactment or rule of law.
85: Interface with Companies Act 1993 and other Acts
1: Section 178 Official Information Act 1982
2: Section 161(1)﻿(b)
3: In all other respects, both the Companies Act 1993 Role and accountability of members
86: Board's role
1: In accordance with section 128(1)
2: The board of a Crown entity company must exercise its duties under section 128(1)
3: Subsection (2) does not limit section 128(3)
87: Accountability of members to shareholding Ministers
1: Members of a Crown entity company must comply with—
a: the board's collective duties (in sections 92 93
b: the individual duty (in section 95
c: any directions applicable to the company under subpart 1
2: Members are accountable to the shareholding Ministers for performing their duties as members under this Act.
3: This section does not affect individual directors' duties that are owed to the company under Part 8 Shareholding Ministers' role
88: Shareholding Ministers' role
1: The role of the shareholding Ministers is to oversee and manage the Crown's interests in, and relationship with, a Crown entity company and to exercise any statutory responsibilities given to the shareholding Ministers, including functions and powers—
a: to appoint and remove members by shareholder resolution in accordance with the Companies Act 1993
b: to review the operations and performance of the company under subpart 3
c: to request information from the entity under subpart 3
d: to participate in the process of setting the company's strategic direction and performance expectations and monitoring the company's performance under Part 4
e: to do other things under this Act or another Act or the company's constitution.
2: The shareholding Ministers may give directions to the company only if expressly authorised to do so by this Act or another Act.
3: This section does not limit another Minister's relationship with the Crown entity company under any other authority.
4: Despite clause 5
5: The shareholding Ministers may delegate the power in section 133 Section 88(1)﻿(d) replaced 1 July 2014 section 45 Crown Entities Amendment Act 2013 Section 88(4) inserted 18 July 2013 section 16 Crown Entities Amendment Act 2013 Section 88(4) amended 7 August 2020 section 135 Public Service Act 2020 Section 88(5) inserted 18 July 2013 section 16 Crown Entities Amendment Act 2013 Monitor's role Heading inserted 18 July 2013 section 17 Crown Entities Amendment Act 2013
88A: Monitor's role
The role of the monitor is, in relation to a monitored Crown entity company,—
a: to assist the shareholding Ministers to carry out their role (which is described in section 88
b: to perform or exercise any or all of the following functions, duties, or powers:
i: administering appropriations:
ii: administering legislation:
iii: tendering advice to Ministers:
iv: any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor. Section 88A inserted 18 July 2013 section 17 Crown Entities Amendment Act 2013 Appointment and removal of members
89: Criteria for appointments by shareholding Minister
1: A shareholding Minister of a Crown entity company must appoint members in accordance with any criteria for members, and any process for appointment, set out under this Act or another Act or the company's constitution.
2: A shareholding Minister—
a: may only appoint a person who, in the shareholding Minister's opinion, has the appropriate knowledge, skills, and experience to ensure the sound management of the Crown entity company and to assist the company to achieve its objectives and perform its functions; and
b: subject to subsection (1), in appointing, must take into account the desirability of promoting diversity in the membership of Crown entities.
3: A member of Parliament is disqualified from being a member of a Crown entity company.
90: Members must disclose interests before appointment
1: Before a person is appointed as a member of a Crown entity company, the person must disclose to the shareholding Ministers the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the Crown entity company.
2: The board of the Crown entity company must notify the shareholding Ministers of a failure to comply with subsection (1) as soon as practicable after becoming aware of the failure.
3: Sections 139 140
91: No compensation for removal from office
A member of a Crown entity company is not entitled to any compensation or other payment or benefit relating to his or her ceasing for any reason to hold office as a member. Collective duties of board
92: Duty to act consistently with objectives, functions, statement of intent, and
statement of performance expectations The board of a Crown entity company must ensure that the company acts in a manner consistent with its objectives, functions, current statement of intent, and current statement of performance expectations Section 92 heading amended 1 July 2014 section 46(1) Crown Entities Amendment Act 2013 Section 92 amended 1 July 2014 section 46(2) Crown Entities Amendment Act 2013
93: Subsidiaries
A Crown entity company must ensure that the company complies with sections 96 to 101
94: Accountability for collective board duties
1: The duties of the board and members of a Crown entity company under sections 92 93 collective duties
2: If a board does not comply with any of its collective duties, all or any of the members may be removed from office.
3: However, subsection (2) does not apply to a member if—
a: he or she did not know and could not reasonably be expected to know that the duty was to be or was being breached; or
b: he or she took all reasonable steps in the circumstances to prevent the duty being breached.
4: A member is not liable for a breach of a collective duty under this Act, except for being removed from office as provided for in subsection (2).
5: This section does not affect any other ground for removing a member from office or section 156
6: Subsection (4) does not affect—
a: anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
b: the right to apply for a court order under the Companies Act 1993 Individual duty of members
95: Duty to comply with this Act and entity's Act
1: A member of a Crown entity company must not contravene, or cause or agree to the company's contravention of, this Act or the entity's Act (if any).
2: This duty is owed to the responsible Minister and the Crown entity company.
3: If a member does not comply with the duty, that member may be removed from office.
4: A Crown entity company may bring action against a member for breach of the duty.
5: A member is not liable for a breach of the duty, except for being removed from office as provided for in subsection (3) or in an action brought under subsection (4).
6: Subsection (5) does not affect anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach.
3: Crown entity subsidiaries
Formation and shareholding of Crown entity subsidiaries
96: Acquisition of subsidiaries
A Crown entity must ensure that the entity acquires or forms a Crown entity subsidiary only,—
a: in the case of a Crown entity that is a Crown entity subsidiary, after written notice to its parent Crown entity:
b: in the case of another Crown entity, after written notice to the responsible Ministers.
97: Subsidiaries: rules applying to all Crown entities
A Crown entity (the parent to the extent that it is reasonably able to do so
a: does not do anything that the parent itself does not have the power to do; and
b: acts consistently with the parent's objectives and current statement of intent (to the extent they relate to the subsidiary); and
c: exercises its powers only for the purpose of performing, or assisting the parent to perform, the parent's functions; and
d: does not contravene this Act or the entity's Act (if any) to the extent that it relates to a subsidiary; and
e: complies with a direction given to the parent (to the extent that it relates to the subsidiary); and
f: does not pay directors of the subsidiary any compensation or other payment or benefit, on any basis, for ceasing for any reason to hold office; and
g: does not perform any of the parent's statutorily independent functions; and
h: has a constitution and that the constitution contains a statement to the effect that the company is a Crown entity for the purposes of this Act; and
i: complies with the statutory requirements as to employees that apply to the parent; and
j: does not have a member of Parliament as a member. Section 97 amended 18 July 2013 section 18 Crown Entities Amendment Act 2013
98: Subsidiaries: rules applying only to statutory entities
1: A statutory entity (the parent to the extent that it is reasonably able to do so
a: performs its functions—
i: efficiently and effectively; and
ii: in a manner consistent with the spirit of service to the public; and
iii: in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001
b: pays remuneration to members of the subsidiary only at a rate and of a kind determined by the parent in accordance with the fees framework or after consulting with the responsible Minister; and
c: complies with the requirements as to chief executives set out in section 117
1A:
2: The requirements of this section are additional to those in section 97 Section 98(1) amended 18 July 2013 section 19(1) Crown Entities Amendment Act 2013 Section 98(1)﻿(a) replaced 18 July 2013 section 19(2) Crown Entities Amendment Act 2013 Section 98(1)﻿(c) amended 31 October 2018 section 4(1) State Sector and Crown Entities Reform Act 2018 Section 98(1A) repealed 1 July 2022 section 104 Pae Ora (Healthy Futures) Act 2022
99: Application to multi-parent subsidiaries
If there is any doubt as to how section 97 section 98 sections 161 to 164
100: Acquisition of shares or interests in companies, trusts, and partnerships, etc
1: A Crown entity must ensure that the entity does not—
a: acquire shares in a company that gives the entity substantial influence in or over that company; or
b: acquire an interest in any partnership, joint venture, or other association of persons, or an interest in a company other than in its shares; or
c: settle, or be or appoint a trustee of, a trust,— other than—
d: after written notice to its parent Crown entity (in the case of a Crown entity subsidiary) or to the responsible Ministers (in the case of any other Crown entity); and
e: in accordance with the procedures and conditions contained in its statement of intent or specified by the responsible Ministers; and
f: for the purpose of the Crown entity carrying out any of its functions, and acting consistently with its objectives, under any Act and its constitution (if any).
2: Substantial influence
3: This section does not apply if the entity acquires a Crown entity subsidiary (in which case section 96
101: Corporation sole may not acquire interests in bodies corporate
1: A corporation sole must not acquire or form a Crown entity subsidiary.
2: A corporation sole must not, without the prior written approval of its responsible Minister, otherwise—
a: form or hold any shares or interests in any body corporate or in a partnership, joint venture, or other association of persons; or
b: settle, or be or appoint a trustee of, a trust.
102: Interface with Companies Act 1993 and other Acts
1: Section 178 Official Information Act 1982
2: Section 161(1)﻿(b)
3: In all other respects, both the Companies Act 1993
3: Operation of Crown entities
1: Provisions applying generally to Crown entities
Directions Heading amended 18 July 2013 section 20 Crown Entities Amendment Act 2013
103: Power to direct Crown agents to give effect to government policy
1: The responsible Minister of a Crown agent may direct the entity to give effect to a government policy that relates to the entity's functions and objectives.
2: Sections 114 115
3: This section is subject to section 113
104: Power to direct autonomous Crown entities to have regard to government policy
1: The responsible Minister of an autonomous Crown entity may direct the entity to have regard to a government policy that relates to the entity's functions and objectives.
2: Sections 114 115
3: A responsible Minister of an autonomous Crown entity may not direct the entity to give effect to a government policy unless specifically provided in another Act.
4: This section is subject to section 113
105: No power to direct independent Crown entities or Crown entity companies on government policy unless provided in another Act
A responsible Minister of an independent Crown entity or a Crown entity company may not direct the entity or company to have regard to or to give effect to a government policy unless specifically provided in another Act.
106: Directions to members and office holders of entities
1: A responsible Minister may, if an Act provides for any member or office holder of an entity to do something, direct that person to have regard to, or to give effect to, a government policy, as the case may be, in the same way that the Minister could give a direction to the entity if the Act required the entity to do the act itself.
2: Sections 114 115
107: Directions to support whole of government approach
1: The Minister of State Services and the Minister of Finance may jointly direct Crown entities to support a whole of government approach by complying with specified requirements for any of the following purposes:
a: to improve (directly or indirectly) public services:
b: to secure economies or efficiencies:
c: to develop expertise and capability:
d: to ensure business continuity:
e: to manage risks to the Government's financial position. Example
A direction may be given requiring that all Crown entities comply with e-government requirements to improve public services.
2: The direction may be given only—
a: to 1 or more categories of Crown entities (for example, to all statutory entities, all Crown entity companies, or all school boards
b: to 1 or more types of statutory entity (for example, to all Crown agents) ; or
c: to a group of Crown entities (whether made up of categories or types) if—
i: the group is made up of at least 3 Crown entities; and
ii: the entities in the group have in common at least 1 significant characteristic that relates to the direction (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).
2A: For the purposes of subsection (2)﻿(a) and (c) Schedule 4A
3: No direction may be given under this section to Crown entity subsidiaries. Section 107 heading replaced 18 July 2013 section 21(1) Crown Entities Amendment Act 2013 Section 107(1) replaced 18 July 2013 section 21(2) Crown Entities Amendment Act 2013 Section 107(2)﻿(a) amended 1 August 2020 section 668 Education and Training Act 2020 Section 107(2)﻿(b) amended 18 July 2013 section 21(3) Crown Entities Amendment Act 2013 Section 107(2)﻿(c) inserted 18 July 2013 section 21(4) Crown Entities Amendment Act 2013 Section 107(2A) inserted 18 July 2013 section 21(5) Crown Entities Amendment Act 2013 Section 107(2A) amended 17 December 2016 section 39 Statutes Amendment Act 2016
108: Process for giving
directions under section 107
1: The Ministers must, before giving a direction under section 107
a: consult with those entities to which the direction is proposed to apply; and
b: consult with persons that the Ministers consider are representative of the interests of persons likely to be substantially affected by the proposed direction.
2: The Ministers must, as soon as practicable after giving a direction under section 107
a: notify the entities to which the direction will apply that the direction has been given and will come into force subject to section 109
b: present the direction to the House of Representatives.
3: This section is subject to section 113 Section 108 heading amended 18 July 2013 section 22 Crown Entities Amendment Act 2013
109: House of Representatives may resolve to disapply
direction under section 107 A direction section 107 Section 109 heading amended 18 July 2013 section 23(1) Crown Entities Amendment Act 2013 Section 109 amended 18 July 2013 section 23(2) Crown Entities Amendment Act 2013
110: Obligation to give effect to direction
1: Every Crown entity within the category or type or group of Crown entities to which a direction is given under section 107
a: the date on which the direction comes into force under section 109
b: any later date specified in the direction in relation to that Crown entity or to the category or type or group of Crown entities to which the Crown entity belongs.
2: If a Crown entity is established on or after the date on which a direction is given under section 107 new Crown entity
a: the date on which the new Crown entity is established; or
b: any later date on which a Crown entity within that category or type of Crown entity must give effect to the direction in accordance with subsection (1). Section 110 replaced 17 December 2016 section 40 Statutes Amendment Act 2016
111: Publication of
direction under section 107
1: As soon as practicable after a direction comes into force under section 109 Gazette
2: If a direction does not come into force, the Ministers who gave it must, as soon as practicable, notify the entities to which the direction would have applied that the direction has been disapplied and will not come into force. Section 111 heading amended 18 July 2013 section 25 Crown Entities Amendment Act 2013
112: Power to add functions if authorised by entity's Act or constitution
1: If an Act, or a Crown entity company's constitution, gives the responsible Minister power to add to the functions of a Crown entity, the Minister may direct the entity to perform any additional function that is so added and that is consistent with the entity's objectives.
2: Sections 114 115
113: Safeguarding independence of Crown entities
1: This Act does not authorise a Minister to direct a Crown entity, or a member, employee, or office holder of a Crown entity,—
a: in relation to a statutorily independent function; or
b: requiring the performance or non-performance of a particular act, or the bringing about of a particular result, in respect of a particular person or persons.
2: This Act does not change the way in which the following functions must be carried out under an entity's Act:
a: statutorily independent functions in an entity's Act; or
b: functions that are carried out by a person acting judicially in relation to a particular matter in accordance with an entity's Act.
3: This section applies to all Ministerial directions given under this Act, including directions under section 107 Section 113(3) amended 18 July 2013 section 26 Crown Entities Amendment Act 2013 Government directions to Crown entities Heading repealed 18 July 2013 section 27 Crown Entities Amendment Act 2013
114: Crown entities must comply with directions given under statutory power of direction
1: A Crown entity must, in performing its functions, comply with—
a: any direction given to it under a power of direction in this Act or another Act; and
b: any direction section 107
2: Comply
3: Subsection (1) applies—
a: except as provided in section 113
b: to a direction given by a Minister, only if it is in writing and signed by a Minister entitled to give the direction. Section 114(1)﻿(b) amended 18 July 2013 section 28 Crown Entities Amendment Act 2013
115: Procedure for ministerial directions on government policy
1: A Minister who proposes to give a direction to a Crown entity under this Act, the entity's Act, or another Act must consult with the Crown entity before giving the direction to the entity.
2: As soon as practicable after giving the direction, a Minister must—
a: publish it in the Gazette
b: present a copy of it to the House of Representatives.
3: The direction may be amended
3A: A Minister who is entitled to give a direction to a Crown entity is also entitled to revoke it by notice in writing to the entity, and, as soon as practicable after doing so, the Minister must publish that notice in the Gazette
4: This section does not apply to directions section 107
5: This section does not apply, in the case of directions given under another Act, if the other Act contains a procedure for giving directions. Section 115 heading replaced 18 July 2013 section 29(1) Crown Entities Amendment Act 2013 Section 115(3) amended 18 July 2013 section 29(2) Crown Entities Amendment Act 2013 Section 115(3A) inserted 18 July 2013 section 29(3) Crown Entities Amendment Act 2013 Section 115(4) amended 18 July 2013 section 29(4) Crown Entities Amendment Act 2013
115A: Review and expiry of all directions
1: A ministerial direction under this Act or another Act may specify its expiry date.
2: A direction that does not specify its expiry date must be reviewed by the Minister or Ministers after the later of the following:
a: 5 years after the direction was given:
b: 5 years after the commencement of this section.
3: A Minister or Ministers reviewing a direction must, to the extent that they consider it necessary in the circumstances,—
a: consult the Crown entity or entities to which the direction applies; and
b: consult any persons that they consider are representative of the interests of persons likely to be substantially affected by the direction.
4: As soon as practicable after completing the review, the Minister or Ministers must notify the outcome of the review to—
a: the Crown entity or entities to which the direction applies; and
b: persons that were consulted under subsection (3)﻿(b).
5: This section does not apply, in the case of directions given under another Act, if the other Act contains a procedure for reviewing directions. Section 115A inserted 18 July 2013 section 30 Crown Entities Amendment Act 2013 Employees
116: Employment of employees
1: If the Governor-General, by Order in Council, requires it, a Crown entity to which the order applies must not agree to terms and conditions of employment in a collective employment agreement, or an amendment to those terms and conditions, without—
a: consulting the Public Service Commissioner
b: having regard to the recommendations the Commissioner makes to the Crown entity within a reasonable time of being consulted.
2: An Order in Council may relate to—
a: all statutory entities and Crown entity companies, categories or types of statutory entities or Crown entity companies, or specific statutory entities or Crown entity companies:
b: all employees or classes of employees of those employers.
3: A failure to comply with this section does not invalidate the acts of an employee of a Crown entity.
4: This section does not limit section 117 Section 116(1)﻿(a) amended 7 August 2020 section 135 Public Service Act 2020
117: Employment of chief executive
1: A chief executive of a statutory entity is appointed for a term of not more than 5 years, but may be reappointed.
2: The terms and conditions of employment of a chief executive of a statutory entity appointed by its board must be determined by agreement between the board and the chief executive.
2A: However, the board must obtain the written consent of the Public Service Commissioner
a: finalising the terms and conditions; or
b: amending any or all of the terms and conditions once they have been finalised.
2B: When considering the terms and conditions of a chief executive, the Public Service Commissioner
a: the legal, commercial, and operational context of the entity:
b: any information provided by the board, which might include, for example, the board’s advice about a person's knowledge, skills, experience, and performance:
c: the public interest in prudent stewardship of public resources:
d: Government expectations:
e: relevant market information.
2C: The Public Service Commissioner
2D: The Public Service Commissioner
3: A failure to comply with this section does not invalidate the acts of a chief executive of an entity. Section 117(1) replaced 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2) replaced 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2A) inserted 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2A) amended 7 August 2020 section 135 Public Service Act 2020 Section 117(2B) inserted 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2B) amended 7 August 2020 section 135 Public Service Act 2020 Section 117(2C) inserted 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2C) amended 7 August 2020 section 135 Public Service Act 2020 Section 117(2D) inserted 31 October 2018 section 5 State Sector and Crown Entities Reform Act 2018 Section 117(2D) amended 7 August 2020 section 135 Public Service Act 2020
118: Crown entity to be good employer
1: A Crown entity must, if it employs employees,—
a: operate a personnel policy that complies with the principle of being a good employer; and
b: make that policy (including the equal employment opportunities programme) available to its employees; and
c: ensure its compliance with that policy (including its equal employment opportunities programme) and report in its annual report on the extent of its compliance.
2: For the purposes of this section, a good employer
a: good and safe working conditions; and
b: an equal employment opportunities programme; and
c: the impartial selection of suitably qualified persons for appointment; and
d: recognition of—
i: the aims and aspirations of Māori; and
ii: the employment requirements of Māori; and
iii: the need for involvement of Māori as employees of the entity; and
e: opportunities for the enhancement of the abilities of individual employees; and
f: recognition of the aims and aspirations and employment requirements, and the cultural differences, of ethnic or minority groups; and
g: recognition of the employment requirements of women; and
h: recognition of the employment requirements of persons with disabilities.
3: For the purposes of this section, an equal employment opportunities programme
119: Application of
clauses 12 to 14 of Schedule 8 of the Public Service Act 2020
1: Each Crown entity is an employer in the State services for the purposes of clauses 12 to 14
2: Clauses 12 to 14 Section 119 heading amended 7 August 2020 section 135 Public Service Act 2020 Section 119(1) amended 7 August 2020 section 135 Public Service Act 2020 Section 119(2) amended 7 August 2020 section 135 Public Service Act 2020
2: Statutory entities
Protections from liability of members, office holders, and employees
120: Protections from liabilities of statutory entity
A member, office holder, or employee of a statutory entity is not liable for any liability of the entity by reason only of being a member, office holder, or employee.
121: Immunity from civil liability
1: A member of a statutory entity is not liable, in respect of an excluded act or omission,—
a: to the entity, unless it is also a breach of an individual duty under any of sections 53 to 57
b: to any other person.
2: An office holder or employee is not liable to any person in respect of an excluded act or omission.
3: Nothing in this section affects—
a: the making of an order under section 60
b: the liability of any person that is not a civil liability:
c: the right of any person to apply, in accordance with the law, for judicial review.
122: Indemnities in relation to excluded act or omission
A statutory entity may only indemnify a member, an office holder, or an employee in respect of an excluded act or omission (including costs incurred in defending or settling any claim or proceeding relating to that excluded act or omission). Section 122 replaced 18 July 2013 section 31 Crown Entities Amendment Act 2013
123: Insurance for liability of member, office holder, or employee
A statutory entity may effect insurance cover for a member, office holder, or employee of the entity in relation to his or her acts or omissions, except an act or omission that is—
a: in bad faith:
b: not in the performance or intended performance of the entity's functions.
124: Saving of judicial protections from liability
A Judge who is appointed as a member of a statutory entity has the same immunities and limitations or other protections from liability when acting as a member of that entity as he or she would have as a Judge.
125: Breach of indemnity and insurance limits
1: A member, office holder, or employee who is indemnified or insured by a statutory entity in breach of this Act must repay to the entity the cost of providing or effecting that indemnity or insurance cover, to the extent that the indemnity or insurance cover exceeds that which could have been provided or effected under this Act.
2: The entity may recover the amount as a debt due in a court of competent jurisdiction.
126: Definitions for protections from liability
In sections 120 to 125 effect insurance employee entity's functions excluded act or omission indemnify indemnity member office holder Dealings with third parties by statutory entities
127: Method of contracting
1: A contract or other enforceable obligation may be entered into by a statutory entity as provided in this section.
2: An obligation that, if entered into by an individual, is required to be by deed may be entered into on behalf of a statutory entity in writing, signed under the name of the entity,—
a: by 2 or more of its members or, if the entity is a corporation sole, by the sole member; or
b: by 1 or more attorneys appointed by the entity under section 129(1)
3: An obligation that, if entered into by an individual, is required to be in writing may be entered into on behalf of a statutory entity in writing by a person acting under the entity's express or implied authority.
4: An obligation that, if entered into by an individual, is not required to be in writing may be entered into on behalf of a statutory entity in writing or orally by a person acting under the entity's express or implied authority.
5: This section applies to a contract or other obligation—
a: whether or not that obligation was entered into in New Zealand; and
b: whether or not the law governing that obligation is the law of New Zealand. Section 127(2)﻿(b) amended 18 July 2013 section 32 Crown Entities Amendment Act 2013
128: Seal
1: A statutory entity may have a common seal if its board adopts one.
2: The common seal of a statutory entity (if it has one) must be judicially noticed in all courts and for all purposes.
129: Attorneys
1: A statutory entity may, by an instrument in writing executed in accordance with section 127(2)
2: An act of the attorney in accordance with the instrument binds the statutory entity.
130: Address for service
The address for service in respect of a statutory entity is the address of the head office of the entity.
3: Miscellaneous provisions
131: Application of Ombudsmen Act 1975 and Official Information Act 1982
Amendment(s) incorporated in the Act(s)
132: Review of Crown entity's operations and performance
1: A responsible Minister may review the operations and performance of a Crown entity at any time.
2: This section does not limit powers of review in the Public Service Act 2020 Public Audit Act 2001
3: Before a Minister undertakes a review under this section, he or she must—
a: consult with the entity on the purpose and nature of the review; and
b: consider any submissions made by the entity on the proposed review.
4: The entity must take all reasonable steps to co-operate with the review. Section 132(2) amended 7 August 2020 section 135 Public Service Act 2020
133: Power to request information
1: The board of a Crown entity must supply to its responsible Minister any information relating to the operations and performance of the Crown entity that the Minister requests.
2: The board of a Crown entity must supply to the Minister of Finance any information requested by the Minister in connection with the exercise of his or her powers under Part 4
2A: The board of a Crown entity must supply to the Minister of State Services any information requested by the Minister in accordance with subsection (2B).
2B: The Minister of State Services—
a: may request a Crown entity to supply information only for the purpose of assessing the capability and performance of the State services; and
b: must make the request to a group of Crown entities that—
i: is made up of at least 3 Crown entities; and
ii: has in common at least 1 significant characteristic that relates to the information requested (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).
2C: Information supplied under subsection (2A)
3: This section is subject to section 134 1989 No 44 s 45B(1) Section 133(2A) inserted 18 July 2013 section 33 Crown Entities Amendment Act 2013 Section 133(2B) inserted 18 July 2013 section 33 Crown Entities Amendment Act 2013 Section 133(2C) inserted 18 July 2013 section 33 Crown Entities Amendment Act 2013
134: Good reasons for refusing to supply requested information
1: A request for information under section 133
a: the withholding of the information is necessary to protect the privacy of a person (whether or not a natural person or a deceased person); or
b: the supply of the information would limit the ability of the Crown entity, or of any of its employees, members, or office holders, to act judicially, or to carry out the statutorily independent functions of the entity, in relation to a particular matter.
2: The reason in subsection (1)﻿(a) applies only if it is not out-weighed by the Minister's need to have the information in order to discharge the Minister's ministerial duties.
3: The information cannot be withheld other than for the reasons in subsection (1), and cannot be withheld at all if it could not properly be withheld under the Official Information Act 1982
4: Section 178 1989 No 44 s 45B(2)
135: Members, office holders, and employees are officials
1: This section applies to—
a: members, office holders, and employees of the following Crown entities:
i: a statutory entity:
ii: a Crown entity company:
iii: a school board
iv: a Crown entity subsidiary that is wholly owned by 1 or more Crown entities referred to in subparagraphs (i) to (iii):
b: office holders and employees of—
i: a tertiary education institution:
ii: a Crown entity subsidiary that is wholly owned by 1 or more tertiary education institutions or by 1 or more tertiary education institutions and 1 or more Crown entities referred to in paragraph (a)﻿(i) to (iii).
1A: In this section, individuals working for the Crown entity as contractors or secondees in relation to a function, duty, or power of the Crown entity are to be treated as if they are employees.
1B: This section also applies to a person who was formerly a person described in subsection (1)﻿(a) or (b) or (1A) in respect of any acts or omissions or decisions made—
a: while that person was a person described in subsection (1)﻿(a) or (b) or (1A); and
b: after the commencement of this subsection.
2: A person to whom this section applies is an official for the purposes of sections 105 105A
3: This section does not limit the meaning of official in section 99 Section 135(1)﻿(a)﻿(iii) amended 1 August 2020 section 668 Education and Training Act 2020 Section 135(1A) inserted 18 July 2013 section 34 Crown Entities Amendment Act 2013 Section 135(1B) inserted 18 July 2013 section 34 Crown Entities Amendment Act 2013
4: Crown entity reporting and financial obligations
1: Interpretation for this Part
136: Interpretation for this Part
1: In this Part, unless the context otherwise requires,— borrow
a: includes entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and
b: includes entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; and
c: includes accepting debt on assignment from other persons; but
d: does not include the purchase of goods or services on credit or the obtaining of an advance by the use of a credit card or by a supplier supplying credit for the purchase of goods or services, for a period of 90 days or less from the date the credit card is used or the credit is supplied class of outputs class section 2(1) Crown entity group
a: a Crown entity; and
b: its Crown entity subsidiaries, other than multi-parent subsidiaries; and
c: any entity that is its subsidiary for the purpose of any financial reporting standard that applies to the Crown entity under generally accepted accounting practice debt security section 8 derivative
a: has the same meaning as in section 8
b: includes a foreign exchange transaction financial product
a: an equity security (within the meaning given in the Financial Markets Conduct Act 2013
b: a debt security:
c: a managed investment product within the meaning of that Act (except a managed investment product in a superannuation scheme, a workplace savings scheme, or a KiwiSaver scheme):
d: a derivative financial year
a: in relation to a school board or a tertiary education institution, an academic year as defined in section 10(1)
b: in relation to any other Crown entity, the 12 months ending on the close of 30 June or any other date determined for that entity by the Minister of Finance forecast financial statements section 2(1) generally accepted accounting practice section 8 next Budget day Public Finance Act 1989 outputs
a: means the goods or services that are supplied by a Crown entity; but
b: does not include goods and services that are produced for purchase or consumption solely within the Crown entity group pre-Budget period
a: the period of 3 months ending when the Minister of Finance next delivers a Budget under the Public Finance Act 1989
b: if the Minister of Finance gives less than 3 months' notice of the next Budget day, the period commencing on the day on which the Minister of Finance gives that notice and ending when the Minister of Finance delivers the Budget public security section 2(1) registered bank section 2 Banking (Prudential Supervision) Act 1989 registered building society Building Societies Act 1965 reportable class of outputs
a: that the Crown entity proposes to supply in the financial year; and
b: that is directly funded (in whole or in part) by the Crown in accordance with an appropriation for the purpose, or by grants distributed under any Act, or by levies, fees, or charges prescribed by or under any Act; and
c: that is not exempted for that financial year under section 149F working day section 2(1)
2: Any term or expression that is defined in the Public Finance Act 1989 Public Finance Act 1989 Section 136(1) Crown entity group replaced 1 July 2014 section 47(1) Crown Entities Amendment Act 2013 Section 136(1) debt security replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 136(1) derivative inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 136(1) derivative transaction repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 136(1) financial product inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 136(1) financial year replaced 1 August 2020 section 668 Education and Training Act 2020 Section 136(1) generally accepted accounting practice replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 136(1) next Budget day inserted 1 July 2014 section 47(2) Crown Entities Amendment Act 2013 Section 136(1) pre-Budget period inserted 1 July 2014 section 47(2) Crown Entities Amendment Act 2013 Section 136(1) registered bank amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 136(1) reportable class of outputs inserted 1 July 2014 section 47(2) Crown Entities Amendment Act 2013 Section 136(1) security repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
2: Reporting obligations
137: Application of this subpart
1: This subpart applies in respect of financial years commencing on or after 1 January 2006.
2: Subsection (1) is subject to section 198 Planning: statement of intent
138: Purpose of statement of intent
The purpose of a statement of intent is to promote the public accountability of a Crown entity by—
a: enabling the Crown to participate in the process of setting the Crown entity's strategic intentions and medium-term undertakings
b: setting out for the House of Representatives those intentions and undertakings:
c: providing a base against which the Crown entity's actual performance can later be assessed. Section 138(a) amended 1 July 2014 section 48 Crown Entities Amendment Act 2013
139: Obligation to prepare statement of intent
1: A Crown entity must provide to its responsible Minister a statement of intent for the Crown entity that complies with this section and section 141
2: A statement of intent must relate to the forthcoming financial year and at least the following 3 financial years.
3: The Crown entity must provide a statement of intent at least once in every 3-year period.
4: This section applies unless the Crown entity is exempted from the requirements of this section by or under this or another Act. Section 139 replaced 1 July 2014 section 49 Crown Entities Amendment Act 2013
139A: Minister may require Crown entity to prepare new statement of intent at any time
1: A Crown entity's responsible Minister may, if the Minister considers it necessary or desirable, require the Crown entity to provide a new statement of intent at any time.
2: A statement of intent provided under this section must comply with sections 139 141
3: Despite section 139(2) Section 139A inserted 1 July 2014 section 49 Crown Entities Amendment Act 2013
139B: Minister may grant extension of time for, or waive, requirement to provide statement of intent
1: If a Crown entity is likely to have a significant change in the nature or scope of its functions, the responsible Minister may grant the Crown entity an extension, of up to 1 year, of the period specified in section 139(3)
2: However, the responsible Minister must not grant an extension unless he or she is satisfied that the extension will enable the entity to improve the quality of the statement of intent that it provides.
3: If a Crown entity is likely to be disestablished or, in the case of a Crown entity company, removed from the register under the Companies Act 1993, the responsible Minister may grant the entity a waiver of the requirements in section 139
4: If the responsible Minister grants an extension or a waiver under this section,—
a: the responsible Minister must, as soon as practicable after granting the extension or waiver, notify the Crown entity of the extension or waiver and the Minister's reasons for granting it; and
b: the Crown entity must, as soon as practicable after receiving notice under paragraph (a), publish notice of the extension or waiver, and the Minister's reasons for granting it, on an Internet site maintained by or on behalf of the Crown entity; and
c: the Crown entity must include, in the next annual report that it provides to its responsible Minister for presentation to the House of Representatives under section 150 extension Section 139B inserted 1 July 2014 section 49 Crown Entities Amendment Act 2013 Section 139B(4)﻿(c) amended 17 December 2016 section 41 Statutes Amendment Act 2016
139C: Responsible Minister may grant extension of time for requirement to provide statement of intent: COVID-19
2020-10-01 Crown Entities Act 2004 This section repealed by s 139C(4) Section 139C repealed 1 October 2020
140: Statement of intent for newly established Crown entities
1: As soon as practicable after a Crown entity is established, the Crown entity must comply with section 139
2:
3: The responsible Minister may give directions to the Crown entity on any matters referred to in section 141(1) and (2)﻿(a), (b), (d), and (e) section 144
4: The directions apply as if they were the Crown entity's statement of intent, until the Crown entity's statement of intent is in force.
5: Sections 113 114 115
6: Section 140(2) repealed 1 July 2014 section 50(1) Crown Entities Amendment Act 2013 Section 140(3) amended 1 July 2014 section 50(2) Crown Entities Amendment Act 2013 Section 140(6) repealed 1 July 2014 section 50(3) Crown Entities Amendment Act 2013
141: Content of statement of intent
1: A statement of intent must, for the period to which it relates, set out the strategic objectives that the entity intends to achieve or contribute to ( strategic intentions
2: A statement of intent must also, for the period to which it relates,—
a: explain the nature and scope of the entity's functions and intended operations:
b: explain how the entity intends to manage its functions and operations to meet its strategic intentions:
c: explain how the entity proposes to manage its organisational health and capability:
d: explain how the entity proposes to assess its performance:
e: identify any process to be followed for the purpose of section 100:
f: set out and explain any other matters—
i: that are reasonably necessary to achieve an understanding of the entity's strategic intentions and capability:
ii: that the entity is required to include in its statement of intent under this Act or another Act.
3: A statement of intent—
a: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
b: is a final statement of intent when it has been signed in accordance with paragraph (a). Section 141 replaced 1 July 2014 section 51 Crown Entities Amendment Act 2013
142: Extra information required in statement of intent for first financial year
Section 142 repealed 1 July 2014 section 52 Crown Entities Amendment Act 2013
143: Exemption for certain outputs
Section 143 repealed 1 July 2014 section 52 Crown Entities Amendment Act 2013
144: Application and term of statement of intent
A statement of intent is in force—
a: from the later of—
i: the date on which the final statement of intent is provided to the responsible Minister; or
ii: the first day of the period to which the statement of intent relates; and
b: until a new statement of intent is in force in relation to that entity
c: with any amendments that are made as described in section 147 section 148 Section 144(b) amended 1 July 2014 section 53 Crown Entities Amendment Act 2013
145: Ministerial involvement in statements of intent
Ministers may participate in determining the content of statements of intent as follows:
a: a responsible Minister may agree with the Crown entity that information additional to that required by section 141
b: a responsible Minister may, by written notice to 1 or more Crown entities, specify the particular form in which any information in the statement of intent must be disclosed:
c: a responsible Minister may make comments on a draft statement of intent under section 146 section 148
d: a responsible Minister may direct amendments to certain information in a statement of intent under section 147 Section 145(a) amended 1 July 2014 section 54 Crown Entities Amendment Act 2013
146: Process for providing statement of intent to responsible Minister
1: A Crown entity that is required to prepare a statement of intent must provide it to its responsible Minister.
2: The process that must be followed in providing a statement of intent is as follows:
a: the Crown entity must provide a draft statement of intent to its responsible Minister—
i: not later than 2 months before the start of the first financial year to which the statement of intent relates; or
ii: in the case of a newly established Crown entity, within the time frame specified by the responsible Minister; or
iii: if the responsible Minister has requested the statement of intent under section 139A
b: the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and
c: the entity must consider the comments (if any) on the draft and provide the final statement of intent to its responsible Minister—
i: as soon as practicable after receiving the comments (if any) but before the start of the first financial year to which the statement of intent relates; or
ii: in the case of a newly established Crown entity,—
A: as soon as practicable, but not later than 25 working days, after receiving the comments; or
B: if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period; or
iii: if the responsible Minister has requested the statement of intent under section 139A
A: as soon as practicable, but not later than 25 working days, after receiving the comments; or
B: if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period. Section 146(2) replaced 1 July 2014 section 55 Crown Entities Amendment Act 2013
147: Amendments to
final
1: A responsible Minister of a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of intent under section 141(1) or (2)﻿(a), (b), (d), or (e)
2: Sections 113 to 115 section 115(2)
3: The amendment to the statement of intent, as specified by the Minister, is in force from the effective date of the direction
4: An amendment under this section—
a: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
b: is a final amendment when it has been signed in accordance with paragraph (a).
5: Section 148 1989 No 44 s 41G Section 147 heading amended 1 July 2014 section 56(1) Crown Entities Amendment Act 2013 Section 147(1) replaced 1 July 2014 section 56(2) Crown Entities Amendment Act 2013 Section 147(2) replaced 1 July 2014 section 56(2) Crown Entities Amendment Act 2013 Section 147(3) amended 1 July 2014 section 56(2) Crown Entities Amendment Act 2013 Section 147(4) replaced 1 July 2014 section 56(3) Crown Entities Amendment Act 2013
148: Amendments to
final
1: A Crown entity may amend its final statement of intent
2: A Crown entity must amend its statement of intent if—
a: the information contained in the statement of intent is false or misleading in a material particular; or
b: the intentions and undertakings in the statement of intent are significantly altered or affected by—
i: a direction given to the Crown entity by a Minister or by a direction under section 107
ii: any change in the law; or
iii: any other change in the entity's operating environment.
3: The Crown entity must make the amendment required under subsection (2) as soon as practicable after the entity becomes aware of the facts that give rise to the obligation to amend under this section.
4: The following process applies to an amendment under subsection (1) or (2)
a: the Crown entity must provide a draft amendment to its responsible Minister; and
b: the responsible Minister must provide to the entity any comments that he or she may have no later than 15 working days
c: the entity must consider the comments (if any) and must provide the final amendment to its responsible Minister as soon as practicable
d:
5: An amendment under this section—
a: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
b: is a final amendment when it has been signed in accordance with paragraph (a).
6: A final amendment under this section is in force from the date on which it is provided to the responsible Minister.
7: A Crown entity may, instead of amending its final statement of intent, provide to its responsible Minister under section 146 sections 139 141 Section 148 heading amended 1 July 2014 section 57(1) Crown Entities Amendment Act 2013 Section 148(1) amended 1 July 2014 section 57(2) Crown Entities Amendment Act 2013 Section 148(2)﻿(b)﻿(i) amended 18 July 2013 section 35 Crown Entities Amendment Act 2013 Section 148(4) amended 1 July 2014 section 57(3) Crown Entities Amendment Act 2013 Section 148(4)﻿(b) amended 1 July 2014 section 57(4) Crown Entities Amendment Act 2013 Section 148(4)﻿(c) amended 1 July 2014 section 57(5) Crown Entities Amendment Act 2013 Section 148(4)﻿(d) repealed 1 July 2014 section 57(6) Crown Entities Amendment Act 2013 Section 148(5) inserted 1 July 2014 section 57(7) Crown Entities Amendment Act 2013 Section 148(6) inserted 1 July 2014 section 57(7) Crown Entities Amendment Act 2013 Section 148(7) inserted 1 July 2014 section 57(7) Crown Entities Amendment Act 2013
149: Obligation to publish and present statement of intent
1: A Crown entity must, as soon as practicable after providing a final statement of intent to its responsible Minister, publish the statement of intent on an Internet site maintained by or on behalf of the entity.
2: Despite subsection (1)
3: The responsible Minister (or another Minister, if subsection (5)
a: in the same document as the entity's annual report for the financial year before the first full financial year to which the statement of intent relates ( see
b: in any other document presented on or before the date on which the annual report described in paragraph (a)
4: An entity's statement of intent may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.
5: A Minister other than the responsible Minister may present an entity's statement of intent to the House of Representatives if—
a: the statement is presented in a document that includes another statement or other information; and
b: that other Minister is responsible for presenting that other statement or information. Section 149 replaced 1 July 2014 section 58 Crown Entities Amendment Act 2013
149A: Obligation to publish and present amendments to statement of intent
1: As soon as practicable after an amendment to a statement of intent is finalised under section 147 148
a: the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and
b: the responsible Minister must present a copy of the amendment to the House of Representatives.
2: Despite subsection (1),—
a: if the amendment will come into force on or after the next Budget day, the responsible Minister—
i: may require the entity not to publish the amendment in the pre-Budget period; and
ii: need not present the amendment to the House of Representatives in that period; and
b: the entity must not publish an amendment to a statement of intent before publishing the statement of intent under section 149
c: the responsible Minister must not present a copy of an amendment to a statement of intent to the House of Representatives before presenting a copy of the statement of intent to the House of Representatives under section 149
d: if Parliament is not in session, subsection (1)﻿(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament. Section 149A inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013 Planning: statement of performance expectations Heading inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149B: Purpose of statement of performance expectations
The purpose of a statement of performance expectations for a Crown entity is to—
a: enable the responsible Minister to participate in the process of setting annual performance expectations; and
b: enable the House of Representatives to be informed of those expectations; and
c: provide a base against which actual performance can be assessed. Section 149B inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149C: Obligation to prepare statement of performance expectations
1: Before the start of each financial year, a Crown entity must prepare a statement of performance expectations for that financial year that complies with section 149E
2: However, if the Crown entity does not propose to supply any reportable classes of outputs in that financial year, the entity's statement of performance expectations—
a: must comply with section 149E(1)﻿(b) to (d) and (3)
b: need not comply with section 149E(1)﻿(a) or (2) Section 149C inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149CA: Responsible Minister may grant extension of time for obligation to prepare statement of performance expectations: COVID-19
2020-10-01 Crown Entities Act 2004 This section repealed by s 149CA(4) Section 149CA repealed 1 October 2020
149D: Statement of performance expectations for newly established Crown entities
1: As soon as practicable after a Crown entity is established, the Crown entity must comply with section 149C
2: However, if the Crown entity is established during the last 4 months of its financial year, the responsible Minister may—
a: waive the requirement for the entity to comply with subsection (1); and
b: require the entity's first statement of performance expectations to cover the period from the date on which the entity is established until the end of the entity's first full financial year.
3: The responsible Minister may, at any time before the entity's first statement of performance expectations becomes final ( see section 149E(3)﻿(c) section 149E section 149E(1)﻿(d)
4: The directions apply as if they were the Crown entity's statement of performance expectations until the entity's first statement of performance expectations becomes final.
5: Sections 113 to 115 Section 149D inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149E: Content of statement of performance expectations
1: Each statement of performance expectations must, in relation to a Crown entity and a financial year,—
a: identify each reportable class of outputs for the financial year; and
b: identify each exemption granted under section 149F(1)﻿(a)
c: state whether the entity proposes to supply any class of outputs in the financial year that is not a reportable class of outputs; and
d: contain forecast financial statements that comply with section 149G
2: For each reportable class of outputs, the statement of performance expectations must—
a: include a concise explanation of what the class of outputs is intended to achieve; and
b: identify the expected revenue and proposed expenses for the class of outputs; and
c: include a concise explanation of how the performance of the class of outputs will be assessed.
3: A statement of performance expectations—
a: must comply with generally accepted accounting practice; and
b: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
c: is a final statement of performance expectations when it has been signed in accordance with paragraph (b). Section 149E inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149F: Exemption for certain outputs
1: The Minister of Finance may exempt, for 1 or more financial years or until further notice, 1 or more classes of outputs from—
a: any statement of performance expectations required under section 149C 149D
b: any statement of performance required under section 151(1)﻿(b)
2: The Minister of Finance must not exempt a class of outputs from a statement of performance expectations or a statement of performance unless he or she is satisfied that—
a: the class of outputs is not material to the statement; or
b: the class of outputs will be adequately reported on to the House of Representatives by a Minister, a department, or another public entity; or
c: for any other reason, the exemption does not unreasonably compromise accountability for the performance of the Crown entity. Section 149F inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149G: Forecast financial statements
1: Each statement of performance expectations, in relation to a Crown entity and a financial year, must contain forecast financial statements for the financial year, prepared in accordance with generally accepted accounting practice.
2: The forecast financial statements must include—
a: a statement of all significant assumptions underlying the forecast financial statements; and
b: any additional information and explanations needed to fairly reflect the forecast financial operations and financial position of the entity. Section 149G inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149H: Ministerial involvement in statements of performance expectations
Ministers may participate in determining the contents of statements of performance expectations as follows:
a: a responsible Minister may agree with a Crown entity that information additional to that required by section 149E
b: a responsible Minister may, by written notice to 1 or more Crown entities, specify the particular form in which any information in the statement of performance expectations must be disclosed:
c: a responsible Minister may make comments on a draft statement of performance expectations under section 149I section 149K
d: a responsible Minister may direct amendments to information in a final statement of performance expectations under section 149J Section 149H inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149I: Process for providing statement of performance expectations to responsible Minister
1: A Crown entity that is required to prepare a statement of performance expectations must provide it to its responsible Minister.
2: The process that must be followed in providing a statement of performance expectations is as follows:
a: the Crown entity must provide a draft statement of performance expectations to its responsible Minister—
i: not later than 2 months before the start of the financial year to which the statement of performance expectations relates; or
ii: in the case of a newly established Crown entity to which section 149D
b: the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and
c: the entity must consider the comments (if any) on the draft and provide the final statement of performance expectations to the responsible Minister—
i: as soon as practicable after receiving the comments (if any), but before the start of the financial year to which the statement of performance expectations relates; or
ii: if the Crown entity is a newly established entity to which section 149D
A: as soon as practicable, but not later than 25 working days, after receiving the comments; or
B: if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period. Section 149I inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149J: Amendments to final statement of performance expectations by responsible Minister
1: A responsible Minister for a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of performance expectations.
2: However, subsection (1) does not apply in respect of the forecast financial statements included in an entity's statement of performance expectations.
3: Sections 113 to 115 section 115(2)
4: An amendment under this section—
a: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
b: is a final amendment when it has been signed in accordance with paragraph (a).
5: Section 149K Section 149J inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149K: Amendments to final statement of performance expectations by Crown entity
1: A Crown entity may amend its final statement of performance expectations at any time.
2: A Crown entity must amend its final statement of performance expectations if—
a: the information contained in the final statement of performance expectations is false or misleading in a material particular; or
b: the intentions and undertakings in the final statement of performance expectations are significantly altered or affected by—
i: a direction given to the Crown entity by a Minister; or
ii: a direction under section 107
iii: any change in the law; or
iv: any other change in the entity's operating environment.
3: The Crown entity must make an amendment required under subsection (2)
4: A Crown entity must amend its statement of performance expectations in accordance with the following process:
a: the Crown entity must provide a draft amendment to its responsible Minister; and
b: the responsible Minister must provide to the entity any comments that he or she may have not later than 15 working days after receiving the draft; and
c: the entity must consider the comments (if any) and provide the final amendment to its responsible Minister as soon as practicable.
5: An amendment under this section—
a: must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
b: is a final amendment when it has been signed in accordance with paragraph (a). Section 149K inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013
149L: Obligation to publish and present statement of performance expectations
1: A Crown entity must, as soon as practicable after providing a final statement of performance expectations to its responsible Minister, publish the statement on an Internet site maintained by or on behalf of the entity.
2: However, if the final statement of performance expectations relates to a period commencing on or after the next Budget day, the responsible Minister may require the Crown entity not to publish the statement in the pre-Budget period.
3: The responsible Minister (or another
a: in the same document as the entity's annual report for the previous financial year ( see section 150
b: in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.
4: An entity's statement of performance expectations may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.
5: A Minister other than the responsible Minister may present an entity's statement of performance expectations to the House of Representatives if—
a: the statement is presented in a document that includes another statement or other information; and
b: that other Minister is responsible for presenting that other statement or information. Section 149L inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013 Section 149L(3) amended 17 December 2016 section 42 Statutes Amendment Act 2016
149M: Obligation to publish and present amendments to statement of performance expectations
1: As soon as practicable after an amendment to a final statement of performance expectations is finalised under section 149J 149K
a: the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and
b: the responsible Minister must present a copy of the amendment to the House of Representatives.
2: Despite subsection (1),—
a: if the amendment will come into force on or after the next Budget day, the responsible Minister—
i: may require the entity not to publish the amendment in the pre-Budget period; and
ii: need not present the amendment to the House of Representatives in that period; and
b: the entity must not publish an amendment to a statement of performance expectations before publishing the statement of performance expectations under section 149L
c: the responsible Minister must not present a copy of an amendment to a statement of performance expectations to the House of Representatives before presenting a copy of the statement of performance expectations to the House of Representatives under section 149L
d: if Parliament is not in session, subsection (1)﻿(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament. Section 149M inserted 1 July 2014 section 58 Crown Entities Amendment Act 2013 Reporting: annual report
150: Obligation to prepare, present, and publish annual report
1: A Crown entity must—
a: as soon as practicable after
b: provide the report to its responsible Minister no later than 15 working days after receiving the audit report provided under section 156
2:
3: A responsible Minister of a Crown entity (or another Minister, if subsection (6) applies) must present the entity's annual report to the House of Representatives within 5 working days after the responsible Minister receives the annual report or, if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.
4: A Crown entity must publish its annual report as soon as practicable after it has been presented to the House of Representatives, but in any case not later than 10 working days after the annual report is received by the Minister, in a manner consistent with any instructions given under section 174
5: An entity's annual report may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the entity, but only if each report or set of information is separately identifiable within that document.
6: A Minister other than the responsible Minister may present an entity's annual report to the House of Representatives if—
a: the report is presented in a document that includes another report or other information; and
b: that other Minister is responsible for presenting that other report or information. 1989 No 44 s 41I Section 150(1)﻿(a) amended 1 July 2014 section 59(1) Crown Entities Amendment Act 2013 Section 150(2) repealed 1 July 2014 section 59(2) Crown Entities Amendment Act 2013 Section 150(3) replaced 18 July 2013 section 36(1) Crown Entities Amendment Act 2013 Section 150(5) inserted 18 July 2013 section 36(2) Crown Entities Amendment Act 2013 Section 150(6) inserted 18 July 2013 section 36(2) Crown Entities Amendment Act 2013
150A: Special annual reporting requirements
Section 150 subpart 1 Section 150A inserted 1 July 2014 section 60 Crown Entities Amendment Act 2013
151: Form and content of annual report
1: An annual report must contain the following information and reports in respect of the financial year to which it relates:
a: information on operations that complies with subsection (2); and
b: a statement of section 153
c: the annual financial statements for the entity in accordance with section 154
d: a statement of responsibility in accordance with section 155
e: the audit report in accordance with section 156
f: any new direction given to the entity by a Minister in writing under any enactment during that financial year, as well as other such directions that remain current; and
g: information on compliance with its obligation to be a good employer (including its equal employment opportunities programme); and
h: information required by section 152
i: information required by section 20(3)
j: information required by section 68(6)
k: any matters that relate to or affect the entity's operations that the entity is otherwise required, or has undertaken, or wishes to report on in its annual report.
1A: However, subsection (1)﻿(b) does not apply unless the Crown entity supplied 1 or more reportable classes of outputs in that financial year.
1B: An annual report may contain end-of-year performance information that the Crown entity is required to prepare under section 19A
2: The annual report must provide the information that is necessary to enable an informed assessment to be made of the entity's operations and performance for that financial year, including an assessment of the entity's progress in relation to its strategic intentions as set out in the most recent statement of intent
3: An annual report must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member. Section 151(1)﻿(b) amended 1 July 2014 section 61(1) Crown Entities Amendment Act 2013 Section 151(1)﻿(c) replaced 1 July 2014 section 61(2) Crown Entities Amendment Act 2013 Section 151(1)﻿(f) replaced 18 July 2013 section 37 Crown Entities Amendment Act 2013 Section 151(1A) inserted 1 July 2014 section 61(3) Crown Entities Amendment Act 2013 Section 151(1B) inserted 1 July 2014 section 61(3) Crown Entities Amendment Act 2013 Section 151(2) amended 1 July 2014 section 61(4) Crown Entities Amendment Act 2013
152: Disclosure of payments in respect of members, committee members, and employees
1: The annual report must include, in respect of the Crown entity
a: for each member, the total value of the remuneration (other than compensation or other benefits referred to in paragraph (d)) paid or payable to the member in his or her capacity as a member from the entity
b: for each committee member who is not a board member or an employee, the total value of the remuneration (other than compensation or other benefits referred to in paragraph (d)) paid or payable to the member in his or her capacity as a committee member from the entity
c: the number of employees to whom, during the financial year, remuneration (other than compensation or other benefits referred to in paragraph (d)) was paid or payable in their capacity as employees, the total value of which is or exceeds $100,000 per annum, and the number of those employees in brackets of $10,000; and
d: the total value of any compensation or other benefits paid or payable to persons who ceased to be members, committee members, or employees during the financial year in relation to that cessation and the number of persons to whom all or part of that total was paid or payable; and
e: details of any indemnity provided by the entity during the financial year to any member, office holder, or employee; and
f: details of any insurance cover effected by the entity during the financial year in respect of the liability or costs of any member, office holder, or employee.
1A: Despite section 156A
2: In subsection (1), member office holder employee 1989 No 44 s 41I s 211 Section 152(1) amended 1 July 2014 section 62(1) Crown Entities Amendment Act 2013 Section 152(1)﻿(a) amended 1 July 2014 section 62(2) Crown Entities Amendment Act 2013 Section 152(1)﻿(b) amended 1 July 2014 section 62(3) Crown Entities Amendment Act 2013 Section 152(1A) inserted 1 July 2014 section 62(4) Crown Entities Amendment Act 2013
153: Form and content of statement of performance
A statement of performance must, in relation to a Crown entity and a financial year,—
a: be prepared in accordance with generally accepted accounting practice; and
b: describe each reportable class of outputs for the financial year; and
c: include, for each reportable class of outputs identified in the entity's statement of performance expectations for the financial year,—
i: the standards of delivery performance achieved by the entity, as compared with the forecast standards included in the entity's statement of performance expectations for the financial year; and
ii: the actual revenue earned and output expenses incurred, as compared with the expected revenues and proposed output expenses included in the entity's statement of performance expectations for the financial year. Section 153 replaced 1 July 2014 section 63 Crown Entities Amendment Act 2013
154: Annual financial statements
1: As soon as practicable after the end of each financial year, a Crown entity must prepare financial statements in relation to the entity for that financial year.
2:
3: The financial statements must—
a: comply with generally accepted accounting practice; and
b: include any other information or explanations needed to fairly reflect the financial operations and financial position; and
c: include the forecast financial statements prepared at the start of the financial year, for comparison with the actual financial statements. Section 154(1) replaced 1 July 2014 section 64 Crown Entities Amendment Act 2013 Section 154(2) repealed 1 July 2014 section 64 Crown Entities Amendment Act 2013
155: Statement of responsibility
The statement of responsibility must—
a: contain a statement of the signatories' responsibility for the preparation of the financial statements and statement of
b: contain a statement of the signatories' responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
c: contain a statement that, in the opinion of the signatories, the financial statements and statement of
ca: contain a statement of the signatories' responsibility for any end-of-year performance information provided by the Crown entity under section 19A
d: be dated and signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member. Section 155(a) amended 1 July 2014 section 65(1) Crown Entities Amendment Act 2013 Section 155(c) amended 1 July 2014 section 65(1) Crown Entities Amendment Act 2013 Section 155(ca) inserted 1 July 2014 section 65(2) Crown Entities Amendment Act 2013
156: Audit report
1: A Crown entity must forward to the Auditor-General,—
a: within 3 months after the end of each financial year,—
i: the Crown entity's annual financial statements and statement of performance (if applicable); and
ii: any end-of-year performance information that the Crown entity is required to provide under section 19A
iii: any other information that the Auditor-General has agreed, or is required, to audit; and
b: the Crown entity's annual report in a timely manner to enable the Auditor-General to review that report before providing the audit report required under subsection (2)﻿(b).
2: The Auditor-General must—
a: audit the statements and information referred to in subsection (1)﻿(a); and
b: provide an audit report to the Crown entity within 4 months after the end of each financial year.
3:
4:
5: 2021-07-01 Crown Entities Act 2004 See s 156(4) 2023-07-01 Crown Entities Act 2004 See s 156(5) (inserted on 13 July 2021) Section 156 replaced 1 July 2014 section 66 Crown Entities Amendment Act 2013 Section 156(3) heading repealed close of 30 June 2023 Section 156(3) repealed close of 30 June 2023 Section 156(4) repealed close of 30 June 2023 Section 156(5) repealed close of 30 June 2023 Application of this subpart to Crown entity groups Heading inserted 1 July 2014 section 67 Crown Entities Amendment Act 2013
156A: Application of this subpart to Crown entity groups
1: A Crown entity ( entity A section 156B
2: Entity A must prepare a statement or report under this subpart if, at the relevant time,—
a: entity A has 1 or more subsidiaries; and
b: entity A is not a subsidiary of another Crown entity.
3: If entity A is required by this section to prepare a statement or report, this subpart—
a: must be read as if it required the statement or report to include consolidated information in respect of the Crown entity group comprising entity A and its subsidiaries, rather than information in respect of entity A only; and
b: otherwise applies with any necessary modifications.
4: In this section,— relevant time
a: the end of the period to which the statement or report relates; or
b: if the statement or report relates to a period that includes a future period, the time when the statement or report is provided to entity A's responsible Minister statement or report
a: statement of intent ( see section 139
b: statement of performance expectations ( see section 149C
c: forecast financial statements ( see section 149G
d: annual report ( see section 150
e: statement of performance ( see section 153
f: annual financial statements ( see section 154 subsidiary section 136(1) Section 156A inserted 1 July 2014 section 67 Crown Entities Amendment Act 2013
156B: Minister of Finance may require additional reporting
1: Despite section 156A specified entity
2: A notice must specify—
a: which statements and reports are required; and
b: the financial years or other period (which may be until further notice) for which each statement or report is required.
3: Before issuing a notice, the Minister of Finance must—
a: consider the operations and functions of the specified entity; and
b: consult the responsible Minister for the parent Crown entity of the Crown entity group to which the specified entity belongs; and
c: be satisfied that each statement or report is necessary or desirable to enhance public accountability of the specified entity.
4: If a specified entity is required under this section to prepare a statement or report, this subpart applies with any necessary modifications. Section 156B inserted 1 July 2014 section 67 Crown Entities Amendment Act 2013 Multi-parent subsidiaries: exemptions from reporting requirements under this subpart Heading inserted 1 July 2014 section 68 Crown Entities Amendment Act 2013
157: Multi-parent subsidiaries part-owned by school board
1: This section applies to a multi-parent subsidiary if any of its parent Crown entities is a school board
2: The Minister of Finance may, by notice in writing, exempt the multi-parent subsidiary from the requirement to prepare a statement or report (as defined in section 156A(4)
a: it would be unduly onerous for the multi-parent subsidiary to comply with the requirement; and
b: the exemption is consistent with maintaining reasonable public accountability of the multi-parent subsidiary.
3: A notice must specify—
a: which statements or reports are not required; and
b: the financial years or other period (which may be until further notice) for which each statement or report is not required.
4: The exemption may be granted subject to any terms or conditions the Minister thinks fit (which may include a condition that a parent Crown entity must, in its equivalent statement or report, include certain information about the multi-parent subsidiary).
5: As soon as practicable after granting an exemption, the Minister must—
a: notify the exemption, and its terms and conditions, in the Gazette
b: present to the House of Representatives a statement of the exemption and its terms and conditions. Section 157 replaced 1 July 2014 section 68 Crown Entities Amendment Act 2013 Section 157 heading amended 1 August 2020 section 668 Education and Training Act 2020 Section 157 heading amended 29 October 2016 section 109(1) Education Legislation Act 2016 Section 157(1) amended 1 August 2020 section 668 Education and Training Act 2020 Section 157(1) amended 29 October 2016 section 109(1) Education Legislation Act 2016
157A: Other multi-parent subsidiaries
1: This section applies to a multi-parent subsidiary other than a multi-parent subsidiary to which section 157
2: The multi-parent subsidiary need not comply with this subpart except as required under this section.
3: The Minister of Finance may, by notice in writing, require the multi-parent subsidiary to prepare 1 or more statements or reports (as defined in section 156A(4)
4: A notice must specify—
a: which statements or reports are required; and
b: the financial years or other period (which may be until further notice) for which each statement or report is required.
5: Before issuing a notice, the Minister of Finance must—
a: consider the operations and functions of the multi-parent subsidiary; and
b: consult the responsible Minister for each parent Crown entity of the multi-parent subsidiary; and
c: be satisfied that each statement or report is necessary or desirable to enhance public accountability of the multi-parent subsidiary. Section 157A inserted 1 July 2014 section 68 Crown Entities Amendment Act 2013
3: Other provisions for financial accountability
Bank accounts
158: Bank accounts of Crown entities
1: A Crown entity must ensure that all money received by the Crown entity is paid, as soon as practicable after it is received, into 1 or more bank accounts that are established, maintained, and operated by the Crown entity at 1 or more of the following:
a: a registered bank or registered building society that satisfies a relevant credit-rating test specified in either regulations made under this Part or a notice in the Gazette
b: a registered bank or registered building society that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette
c: a bank outside New Zealand that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette
d: a bank outside New Zealand if the conditions specified in subsection (2) are met.
2: The conditions referred to in subsection (1)﻿(d) are—
a: the Crown entity, or the class of Crown entities to which the Crown entity belongs, must be authorised to establish, maintain, and operate 1 or more bank accounts at 1 or more banks outside New Zealand by—
i: the Minister of Finance in writing; or
ii: any regulations made under this Part; and
b: the bank account or bank accounts must be of a type approved by—
i: the Minister of Finance in writing; or
ii: any regulations made under this Part.
3: A Crown entity must establish, maintain, and operate a bank account referred to in subsection (2) subject to—
a: any regulations made under this Part; and
b: if applicable, any conditions of the authorisation or approval given by the Minister of Finance; and
c: the entity's Act.
4: The Minister of Finance must notify in the Gazette
5: A Crown entity must ensure that it does not establish, maintain, or operate a bank account other than as provided for in subsection (1).
6: All money in a bank account at a registered bank or a registered building society must be denominated in New Zealand dollars unless the Minister of Finance allows otherwise.
7: A Crown entity must properly authorise the withdrawal or payment of money from a bank account of the Crown entity.
8: There is a period of grace if a bank account ceases to qualify under subsection (1), and—
a: during that period the Crown entity may continue to pay money into the bank account; but
b: by the end of the period the Crown entity must have closed the account and paid all the money in the account into another bank account that does qualify under subsection (1).
9: The period of grace ends on the earlier of—
a: 2 months after the bank account ceases to qualify under subsection (1); or
b: a date specified by the Minister of Finance and notified to the Crown entity. 1989 No 44 s 24 Acquisition of financial products, borrowing, guarantees, indemnities, and derivatives Heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
159: Application of acquisition of
financial products, borrowing, guarantees, indemnities, and derivatives Sections 160 to 164 Section 159 heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
160: Further provision relating to acquisition of
financial products, borrowing, guarantees, indemnities, and derivatives
1: Sections 161 to 164
a: any regulations made under this Part; and
b: any approval given jointly by the entity's responsible Minister and the Minister of Finance; and
c: an entity's Act; and
d: an exemption granted in Schedule 1 Schedule 2
2: Sections 161 to 164
3: The Minister of Finance must notify in the Gazette Section 160 heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
161: Restrictions on acquisition of
financial products
1: A Crown entity must not acquire financial products
a: a debt security denominated in New Zealand dollars that is issued by a registered bank, or by any other entity, that satisfies a credit-rating test that is specified in either regulations made under this Part or a notice in the Gazette
b: a public security:
c: as provided in section 160
2: This section does not apply to any money, financial product
2A: This section does not apply to derivatives.
3: This section does not prohibit a Crown entity from acquiring subsidiaries or shares if section 96 section 100 Section 161 heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 161(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 161(2) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 161(2A) inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
162: Restrictions on borrowing
A Crown entity must not borrow from any person, or amend the terms of any borrowing, other than as provided in section 160
163: Restrictions on giving of guarantees and indemnities
1: A Crown entity must not, with or without security, give a guarantee to, or indemnify, another person , or amend the terms of any such guarantee or indemnity, section 160
2: This section does not apply if the other person is—
a: a member, office holder, committee member, employee, or other individual indemnified by the board in relation to any claim or proceeding under—
i: section 122
ii: section 162
iii: the entity's natural person powers or other powers in the entity's Act:
b: a delegate or agent indemnified by the board under its natural person powers, or the common law, in relation to any claim or proceeding.
3: This section does not apply to any guarantee or indemnity that is implied at law or arising from any transactions that may be authorised under regulations made under this Part. Section 163(1) amended 1 July 2014 section 69 Crown Entities Amendment Act 2013
164: Restrictions on use of derivatives
A Crown entity must not enter into an agreement constituting a derivative, or amend the terms of that agreement, other than as provided in section 160 Section 164 replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Miscellaneous
165: Net surplus payable by certain statutory entities and Crown entity companies
1: Unless an exemption is granted in Schedule 1 Schedule 2
2: In this section, net surplus
3: Before the Minister of Finance issues a requirement under this section,—
a: the Minister of Finance must consult with each responsible Minister; and
b: a responsible Minister must consult with the Crown entity.
4: This section does not limit any provision for the payment of an annual distribution or similar payment to the Crown under the entity's Act.
5: This section does not limit the need for a Crown entity company to comply also with the provisions of the Companies Act 1993
166: Capital charge payable by certain statutory entities
1: This section applies to a statutory entity only if the Minister of Finance has notified the statutory entity in writing that it is now subject to a capital charge under this section.
2: A statutory entity must pay to the Crown a capital charge in respect of the whole or part of the net assets of the entity of an amount, and at the times, prescribed by the capital charge rules.
3: Unless otherwise compensated by the Crown, the Minister of Finance may not require a statutory entity to pay a capital charge in respect of the net value of assets acquired by way of gift from any person other than the Crown or an entity described in section 27(3)
4: In this section, net assets
5: The Minister of Finance must—
a: consult with the statutory entity before notifying the statutory entity that it is subject to a capital charge under this section; and
b: present a copy of the notification to the House of Representatives as soon as practicable after the date on which the notification is given.
167: Gifts
1: Any money or property that is gifted to a Crown entity may be accepted or disclaimed by a Crown entity.
2: The limitations in this Act (such as the limitations on the form in which property may be held) do not apply to gifted property during a period that is reasonable in the circumstances.
168: Accounting records to be kept
1: The board of a Crown entity must cause accounting records to be kept that—
a: correctly record and explain the transactions of the Crown entity; and
b: will at any time enable the financial position of the Crown entity to be determined with reasonable accuracy; and
c: will enable the members of the Crown entity to ensure that the financial statements of the Crown entity comply with section 154
d: will enable the financial statements of the Crown entity to be readily and properly audited.
2: The accounting records must be in written form or in a manner in which they are easily accessible and convertible into written form.
3: If the board of a Crown entity fails to comply with the requirements of this section, every member of the Crown entity commits an offence and is liable on conviction to a penalty not exceeding $5,000.
4: It is a defence to a member charged with an offence under this section if the member proves that—
a: the board took all reasonable and proper steps to ensure that the requirements of this section would be complied with; or
b: he or she took all reasonable and proper steps to ensure that the board complied with the requirements of this section; or
c: in the circumstances he or she could not reasonably have been expected to take steps to ensure that the board complied with the requirements of this section. 1993 No 105 s 194
4: Miscellaneous
169: Taxation of statutory entities
A statutory entity is a public authority for the purpose of the Inland Revenue Acts (as that term is defined in the Tax Administration Act 1994
170: Responsible Minister may set standards, terms, and conditions in respect of certain classes of outputs
A responsible Minister may set standards, terms, and conditions in respect of any reportable class of outputs that a Crown entity proposes to supply. Section 170 replaced 1 July 2014 section 70 Crown Entities Amendment Act 2013
171: Offences
1: Every person commits an offence against this Act who knowingly—
a: refuses or fails to produce any information that is in that person's possession or under that person's control in relation to the management, performance, or operations of a Crown entity when required to do so under this Act; or
b: resists or obstructs any person acting in the discharge of that person's functions or in the exercise of that person's powers under this Act; or
c: represents directly or indirectly that he or she holds any authority under this Act knowing that he or she does not hold that authority.
2: Every person commits an offence against this Act who makes any statement or declaration, or gives any information or certificate, required by or under this Act, knowing it to be false or misleading. 1989 No 44 s 76
172: Penalties for offences
1: Every person who commits an offence against section 171(1)
a: in the case of an individual, to a fine not exceeding $2,000; or
b: in the case of a person or organisation other than an individual, to a fine not exceeding $5,000.
2: Every person who commits an offence against section 171(2)
a: in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $5,000; or
b: in the case of a person or organisation other than an individual, to a fine not exceeding $15,000. 1989 No 44 s 77 Section 172(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 172(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
173: Regulations under this Part
1: The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:
a: requiring Crown entities to include information in a statement of intent or annual report that is additional to the information required by this Act:
b: providing for the establishment, maintenance, and operation of bank accounts by Crown entities:
c: prescribing the nature and extent of the acquisition of financial products that may be undertaken by Crown entities, the financial products that Crown entities may acquire, the persons with whom a Crown entity may enter into agreements that constitute financial products, and any other matters relating to the acquisition of financial products or entering into those agreements:
d: prescribing the nature and extent of borrowing that may be undertaken by Crown entities, the persons from whom a Crown entity may borrow, and any other matters relating to borrowing by Crown entities:
e: authorising the giving of any guarantees or indemnities:
f:
g: specifying credit-rating tests for the purpose of this Part:
h: prescribing capital charge rules for the purposes of section 166
i: amending Schedule 1 Schedule 2 financial products sections 161 to 164
j: amending Schedule 1 Schedule 2 section 165
k: prescribing offences in respect of the contravention of any regulations made under this Act, and prescribing penalties not exceeding $2,000 in respect of those offences:
l: providing for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.
2: The regulations in subsection (1) may be made in respect of all or any Crown entities or categories or types of Crown entities.
3: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 173(1)﻿(c) replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 173(1)﻿(f) repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 173(1)﻿(i) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 173(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
174: Minister of Finance instructions
1: The Minister of Finance may issue instructions to Crown entities that,—
a: prescribe minimum requirements concerning the publication of information that Crown entities must publish by or under this Act:
b: prescribe the non-financial reporting standards that Crown entities must apply and the form in which Crown entities must provide the information that they are required to present to the House of Representatives by or under this Act.
2: The instructions in subsection (1) may be made in respect of all or any Crown entities, or categories or types of Crown entities.
3: The instructions in subsection (1) must be consistent, in the opinion of the Minister, with generally accepted accounting practice and any reporting standard imposed by or under any other Act, to the extent that those matters are relevant to the instructions.
4: The Minister of Finance may exempt any Crown entities, or categories or types of Crown entities, from provisions of any instruction, and may amend or revoke that exemption in the same way.
5: Instructions under this section are secondary legislation ( see Part 3
6: The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must: LA19 ss 73 74(1)﻿(a) cl 14 •	notify it in the Gazette •	publish it on the Internet Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 174(5) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 174(6) repealed 28 October 2021 section 3 Secondary Legislation Act 2021
175: Consultation with House of Representatives on reporting standards
1: The Minister must prepare and submit to the Speaker of the House of Representatives a draft of any instruction proposed to be issued under section 174(1)﻿(b)
2: The Speaker must present the draft instruction to the House of Representatives as soon as is reasonably practicable.
3: The Minister, after considering any comments of the Speaker or any committee of the House of Representatives that considered the draft instruction, may amend the draft instruction as the Minister thinks fit.
4: The Minister must, as soon as practicable after issuing an instruction, present it to the House of Representatives. 2001 No 10 s 36
176: Application of provisions of Public Finance Act 1989
The following provisions of the Public Finance Act 1989
a: section 26
b: section 49
c: section 74
5: Miscellaneous provisions
Miscellaneous
177: Application of liquidation provisions of Companies Act 1993 to statutory entities
For the avoidance of doubt, section 240B Section 177 heading amended 1 March 2017 section 9(2) Companies Amendment Act 2016 Section 177 amended 1 March 2017 section 9(3) Companies Amendment Act 2016
178: Application of Archives Act 1957
The Archives Act 1957
179: Public Bodies Contracts Act 1959 does not apply to Crown entities
1: The Public Bodies Contracts Act 1959
2: The schedules of the Public Bodies Contracts Act 1959
180: Local Authorities (Members' Interests) Act 1968 does not apply to Crown entities
1: The Local Authorities (Members' Interests) Act 1968
2: The schedules of the Local Authorities (Members' Interests) Act 1968
181: Administration of Crown entity provisions
1: Parts 1 2 3 5 Public Service Commission
2: Part 4 Section 181(1) amended 7 August 2020 section 135 Public Service Act 2020 Transitional and savings provisions
182: Existing members exempt from qualification requirements
Section 182 repealed 24 October 2019 section 38 Statutes Amendment Act 2019
183: Term of office of existing members other than ex officio members
Section 183 repealed 24 October 2019 section 39 Statutes Amendment Act 2019
184: Term of office of existing ex officio members
Section 184 repealed 24 October 2019 section 40 Statutes Amendment Act 2019
185: Term of office of existing chairpersons and deputy chairpersons
Every chairperson and deputy chairperson of a statutory entity (other than an ex officio member) in office at the commencement of this section is not affected by any change in the method of appointment of the person under this Act.
186: Continuation of existing board committees
1: Every committee that exists at the commencement of this section continues in existence under this Act until it is disestablished under this Act.
2: Every member of the committee (other than a member who holds office because the person is a representative of any part of the public service Section 186(2) amended 7 August 2020 section 135 Public Service Act 2020 Section 186(2) amended 24 October 2019 section 41 Statutes Amendment Act 2019
187: Continuation of existing employment
A person who is, at the commencement of this section, an employee of a statutory entity, does not cease to be an employee because of the coming into force of this Act.
188: Existing compensation provision
1: This section applies to a member of a Crown entity and every member of a committee who is entitled, at the commencement of this section under any contract or arrangement, to any compensation or other payment or benefit relating to his or her ceasing for any reason to hold office as a member.
2: The entitlement is not affected by the enactment of this Act.
3: However, the entitlement is cancelled on the date of reappointment of the member to the Crown entity or the committee (if any).
189: Existing protection from liability provisions
1: This section applies to a member, an office holder, or an employee of a Crown entity who is entitled, immediately before the date of commencement of this section, to be indemnified by a Crown entity in respect of any proceedings for any liability or costs arising from any act or omission as a member, office holder, or employee that occurred before that date.
2: This Act does not affect the member, office holder, or employee's entitlement to an indemnity if that entitlement is, in its overall effect, as favourable to that person as, or more favourable to that person than, the entitlement provided for in this Act.
190: Existing insurance cover
1: This section applies to a member, office holder, or employee of a statutory entity who has insurance cover at the commencement of this section in respect of any liability or costs arising from any act or omission as a member, office holder, or employee.
2: The insurance cover is not affected by the enactment of this Act.
3: However, if the insurance cover expires, or the member, office holder, or employee is reappointed or re-employed, the insurance can be renewed or effected only if permitted by this Act or the entity's Act.
191: Existing rights under Government Superannuation Fund Act 1956 unaffected
This Act does not affect any entitlement of a member, employee, or office holder of a Crown entity under the Government Superannuation Fund Act 1956
192: Existing delegations and directions to continue
1: A delegation that is in effect in respect of a statutory entity under a provision of another Act that is repealed by this Act at the commencement of this section continues in effect as if it were a delegation under section 73
2: A direction that is in effect in respect of a statutory entity under a provision of another Act at the commencement of this section continues in effect as if this Act had not been enacted.
193: Other existing things protected
The commencement of this Act does not affect the completion of a matter or thing, or the bringing or completion of proceedings, that relate to an existing right, interest, title, immunity, or duty.
194: Existing shareholdings in Crown entity subsidiaries
Subpart 3
a: 3 years after that subpart comes into force; or
b: a date specified by the Minister of Finance by notice in the Gazette
195: Existing bank accounts
Section 195 repealed 24 October 2019 section 42 Statutes Amendment Act 2019
196: Existing law on securities, borrowing, guarantees, indemnities, and derivative transactions continues to apply until 1 April 2005
Section 196 repealed 24 October 2019 section 43 Statutes Amendment Act 2019
197: Continuation of pre-1 April 2005 securities, borrowing, guarantees, indemnities, and derivative transactions
1: This section applies to any security, borrowing, guarantee, indemnity, or derivative transaction that a Crown entity has lawfully acquired, given, or entered into before 1 April 2005 that the Crown entity would be restricted from having, acquiring, giving, or entering into under this Act after sections 160 to 164
2: The security, borrowing, guarantee, indemnity, or derivative transaction is not affected by the enactment of this Act.
3: However, the terms of the security, borrowing, guarantee, indemnity, or derivative transaction may be amended, or any options resulting from the security, borrowing, or derivative may be taken up, on and after 1 April 2005, only if permitted by the Minister of Finance.
4: This section does not apply to an indemnity in respect of a member, office holder, employee, committee member, or other individual of a Crown entity in relation to a claim or proceeding.
198: Reporting obligations in respect of financial years ending before 1 July 2006
1: The reporting requirements and provisions that would have applied if this Act and the Public Finance Amendment Act 2004
2: Therefore, for example, the Crown entity must comply, in respect of those financial years, with the requirements relating to annual financial statements, annual reports, and audits that were in the Public Finance Act 1989
3: Despite subsections (1) and (2),—
a: section 134(2)﻿(d)﻿(iv) and (v)
b: section 152
4: In this section, Crown entity Section 198(3)﻿(a) amended 1 January 2023 section 668 Education and Training Act 2020
199: Regulations for transitional, savings, and general purposes
1: The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:
a: providing for any transitional or savings matters concerning the coming into force of this Act:
b: providing for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.
2: The regulations may be made in respect of all or any Crown entities or categories or types of Crown entities.
3: Any transitional or savings provisions prescribed in regulations made under subsection (1) may be in addition to or in place of any of the provisions of sections 137 159 195 196 197 198
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 199(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
199A: Application, savings, and transitional provisions relating to amendments to Act
The application, savings, and transitional provisions set out in Schedule 1AAA Section 199A inserted 18 July 2013 section 38 Crown Entities Amendment Act 2013 Amendments to other enactments
200: Amendments to other enactments
The enactments specified in Schedule 6
201: Amendment to Gas Amendment Act 2004
1: Amendment(s) incorporated in the Act(s)
2: For the avoidance of doubt, the Gas Amendment Act 2004