New Zealand Legislation: Acts
Acts are laws made by Parliament
Reprint as at 30 August 2011
| Public Act | 2004 No 115 |
| Date of assent | 21 December 2004 |
| Commencement | see section 2 |
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
This Act is administered by the State Services Commission and the Treasury.
4 Application of Acts to Crown entities
5 Application of this Act to school boards of trustees
6 Application of this Act to tertiary education institutions
7 Meaning of Crown entity and categories of Crown entities
8 Meaning of parent Crown entity and Crown entity subsidiary
9 Power to amend Schedules 1 and 2
12 Outline of main Crown entity provisions
Part 2
Establishment and governance of Crown entities
Establishment of statutory entity
13 Establishment of statutory entity
16 Core things statutory entities can do
17 Other things statutory entities can do
18 Acts must be for purpose of functions
19 Acts in breach of statute are invalid
20 Some natural person acts protected
21 Limits on protection of natural person acts
22 Acts that are not in best interests of statutory entity
23 Dealings between statutory entities and other persons
Role and accountability of members
26 Accountability of members to responsible Minister
27 Responsible Minister's role
Appointment, removal, and conditions of members
28 Method of appointment of members
29 Criteria for appointments or recommendations by responsible Minister
31 Requirements before appointment
33 Elected, co-opted, etc, members
36 Removal of members of Crown agents
37 Removal of members of autonomous Crown entities
38 Removal of elected members of Crown agents and autonomous Crown entities
39 Removal of members of independent Crown entities
43 No compensation for loss of office
45 Members ceasing to hold office
46 Member of corporation sole not to hold concurrent office
49 Entity must act consistently with objectives, functions, statement of intent, and output agreement
50 Functions must be performed efficiently, effectively, and consistently with spirit of service to public
51 Entity must operate in financially responsible manner
52 Subsidiaries and other interests
53 Duty to comply with this Act and entity's Act
54 Duty to act with honesty and integrity
55 Duty to act in good faith and not at expense of entity's interests
56 Duty to act with reasonable care, diligence, and skill
57 Duty not to disclose information
Effect of non-compliance with duties
58 Accountability for collective board duties
59 Accountability for individual duties
60 Court actions requiring or restraining board or members
Reliance on information and advice
61 When members may rely on certain information and advice
Conflict of interest disclosure rules
62 When interests must be disclosed
63 Obligation to disclose interest
64 Who disclosure of interests must be made to
66 Consequences of being interested in matter
67 Consequences of failing to disclose interest
68 Permission to act despite being interested in matter
69 Entity may avoid certain acts done in breach of conflict of interest rules
72 Effect of avoidance on third parties
75 Effect of delegation on entity or board
Miscellaneous provisions relating to board
77 Vacancies in membership of board
Subpart 2—Crown entity companies
Formation and shareholding of Crown entity companies
79 Formation and acquisition of shares in Crown entity companies
80 Restrictions relating to shares in Crown entity companies
81 Crown entity company must have constitution stating it is Crown entity
82 Constitution must be presented to House of Representatives
83 Shares to be held by person holding office as Minister
84 Appointment of representative of shareholding Minister
85 Interface with Companies Act 1993 and other Acts
Role and accountability of members
87 Accountability of members to shareholding Ministers
88 Shareholding Ministers' role
Appointment and removal of members
89 Criteria for appointments by shareholding Minister
90 Members must disclose interests before appointment
91 No compensation for removal from office
92 Duty to act consistently with objectives, functions, statement of intent, and output agreement
94 Accountability for collective board duties
95 Duty to comply with this Act and entity's Act
Subpart 3—Crown entity subsidiaries
Formation and shareholding of Crown entity subsidiaries
96 Acquisition of subsidiaries
97 Subsidiaries: rules applying to all Crown entities
98 Subsidiaries: rules applying only to statutory entities
99 Application to multi-parent subsidiaries
100 Acquisition of shares or interests in companies, trusts, and partnerships, etc
101 Corporation sole may not acquire interests in bodies corporate
102 Interface with Companies Act 1993 and other Acts
Part 3
Operation of Crown entities
Subpart 1—Provisions applying generally to Crown entities
Directions on government policy to statutory entities and Crown entity companies
103 Power to direct Crown agents to give effect to government policy
104 Power to direct autonomous Crown entities to have regard to government policy
105 No power to direct independent Crown entities or Crown entity companies on government policy unless provided in another Act
106 Directions to members and office holders of entities
107 Whole of government directions
108 Process for giving whole of government directions
109 House of Representatives may resolve to disapply whole of government direction
110 Obligation to give effect to direction
111 Publication of whole of government direction
112 Power to add functions if authorised by entity's Act or constitution
113 Safeguarding independence of Crown entities
Government directions to Crown entities
114 Crown entities must comply with directions given under statutory power of direction
115 Procedure for all Ministerial directions
117 Employment of chief executive
118 Crown entity to be good employer
119 Application of sections 84 to 84B of the State Sector Act 1988
Protections from liability of members, office holders, and employees
120 Protections from liabilities of statutory entity
121 Immunity from civil liability
122 Indemnities in relation to excluded act or omission
123 Insurance for liability of member, office holder, or employee
124 Saving of judicial protections from liability
125 Breach of indemnity and insurance limits
126 Definitions for protections from liability
Dealings with third parties by statutory entities
Subpart 3—Miscellaneous provisions
131 Application of Ombudsmen Act 1975 and Official Information Act 1982
132 Review of Crown entity's operations and performance
133 Power to request information
134 Good reasons for refusing to supply requested information
135 Members, office holders, and employees are officials
Part 4
Crown entity reporting and financial obligations
Subpart 1—Interpretation for this Part
136 Interpretation for this Part
Subpart 2—Reporting obligations
137 Application of this subpart
138 Purpose of statement of intent
139 Obligation to prepare statement of intent
140 Statement of intent for newly established Crown entities
141 Content of statement of intent
142 Extra information required in statement of intent for first financial year
143 Exemption for certain outputs
144 Application and term of statement of intent
145 Ministerial involvement in statements of intent
146 Process for providing statement of intent to responsible Minister
147 Amendments to statement of intent by responsible Minister
148 Amendments to statement of intent by Crown entity
149 Obligation to present and publish statement of intent
150 Obligation to prepare, present, and publish annual report
151 Form and content of annual report
152 Disclosure of payments in respect of members, committee members, and employees
153 Form and content of statement of service performance
154 Annual financial statements
155 Statement of responsibility
157 Reporting by multi-parent subsidiaries
Subpart 3—Other provisions for financial accountability
158 Bank accounts of Crown entities
Acquisition of securities, borrowing, guarantees, indemnities, and derivative transactions
159 Application of acquisition of securities, borrowing, guarantees, indemnities, and derivative transactions rules
160 Further provision relating to acquisition of securities, borrowing, guarantees, indemnities, and derivative transactions rules
161 Restrictions on acquisition of securities
163 Restrictions on giving of guarantees and indemnities
164 Restrictions on use of derivatives
165 Net surplus payable by certain statutory entities and Crown entity companies
166 Capital charge payable by certain statutory entities
168 Accounting records to be kept
169 Taxation of statutory entities
170 Power to require output agreement
173 Regulations under this Part
174 Minister of Finance instructions
175 Consultation with House of Representatives on reporting standards
176 Application of provisions of Public Finance Act 1989
Part 5
Miscellaneous provisions
177 Application of liquidation provisions of Judicature Act 1908 to statutory entities
178 Application of Archives Act 1957
179 Public Bodies Contracts Act 1959 does not apply to Crown entities
180 Local Authorities (Members' Interests) Act 1968 does not apply to Crown entities
181 Administration of Crown entity provisions
Transitional and savings provisions
182 Existing members exempt from qualification requirements
183 Term of office of existing members other than ex officio members
184 Term of office of existing ex officio members
185 Term of office of existing chairpersons and deputy chairpersons
186 Continuation of existing board committees
187 Continuation of existing employment
188 Existing compensation provision
189 Existing protection from liability provisions
191 Existing rights under Government Superannuation Fund Act 1956 unaffected
192 Existing delegations and directions to continue
193 Other existing things protected
194 Existing shareholdings in Crown entity subsidiaries
196 Existing law on securities, borrowing, guarantees, indemnities, and derivative transactions continues to apply until 1 April 2005
197 Continuation of pre-1 April 2005 securities, borrowing, guarantees, indemnities, and derivative transactions
198 Reporting obligations in respect of financial years ending before 1 July 2006
199 Regulations for transitional, savings, and general purposes
Amendments to other enactments
200 Amendments to other enactments
201 Amendment to Gas Amendment Act 2004
Schedule 2
Crown entity companies
Schedule 3
Application of Crown Entities Act 2004 to school boards of trustees
Schedule 4
Application of Crown Entities Act 2004 to tertiary education institutions
Schedule 5
Board procedure for statutory entities (other than corporations sole)
Schedule 6
Amendments to other Acts arising from Crown entity reforms
