Part 3 Accountability

14 Statement of corporate intent

(1)

The board of every State enterprise shall deliver to the shareholding Ministers a draft statement of corporate intent not later than 1 month before the commencement of each financial year of the State enterprise.

(2)

Each statement of corporate intent shall specify for the group comprising the State enterprise and its subsidiaries (if any), in respect of that financial year and each of the immediately following 2 financial years, the following information:

(a)

the objectives of the group:

(b)

the nature and scope of the activities to be undertaken:

(c)

the ratio of consolidated shareholders’ funds to total assets, and definitions of those terms:

(d)

the accounting policies:

(e)

the performance targets and other measures by which the performance of the group may be judged in relation to its objectives:

(f)

a statement of the principles adopted in determining the annual dividend together with an estimate of the amount or proportion of annual tax paid earnings (from both capital and revenue sources) that is intended to be distributed to the Crown:

(g)

the kind of information to be provided to the shareholding Ministers by the State enterprise during the course of those financial years, including the information to be included in each half-yearly report:

(h)

the procedures to be followed before any member of the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation:

(i)

any activities for which the board seeks compensation from the Crown (whether or not the Crown has agreed to provide such compensation):

(j)

such other matters as are agreed by the shareholding Ministers and the board.

(3)

Each statement of corporate intent shall also include the board’s estimate of the current commercial value of the Crown’s investment in the group and a statement of the manner in which that value was assessed.

(4)

The board shall consider any comments on the draft statement of corporate intent that are made to it not later than 14 days before the commencement of the financial year by the shareholding Ministers, and shall deliver the completed statement of corporate intent to the shareholding Ministers on or before the commencement of the financial year or such later date as the shareholding Ministers may determine.

(5)

A statement of corporate intent for a State enterprise may be modified at any time by written notice from the board to the shareholding Ministers, so long as the board has first given written notice to the shareholding Ministers of the proposed modification and considered any comments made thereon by the shareholding Ministers within 1 month of the date on which that notice was given.

Section 14: substituted, on 10 April 1992, by section 3(1) of the State-Owned Enterprises Amendment Act 1992 (1992 No 27).