Crown Entities Act 2004

If you need more information about this Act, please contact the administering agency: Public Service Commission and The Treasury

Version as at 1 January 2023

Coat of Arms of New Zealand

Crown Entities Act 2004

Public Act
2004 No 115
Date of assent
21 December 2004
see section 2

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Public Service Commission and the Treasury.


4Application of Acts to Crown entities
5Application of this Act to school boards
6Application of this Act to tertiary education institutions
7Meaning of Crown entity and categories of Crown entities
7AMeaning of multi-parent subsidiary
8Meaning of parent Crown entity
9Power to amend Schedules 1 and 2
10AProvisions affecting application of amendments to this Act
10BStatus of examples
11Act binds the Crown
12Outline of main Crown entity provisions
13Establishment of statutory entity
15Status of statutory entity
16Core things statutory entities can do
17Other things statutory entities can do
18Acts must be for purpose of functions
19Acts in breach of statute are invalid
20Some natural person acts protected
21Limits on protection of natural person acts
22Acts that are not in best interests of statutory entity
23Dealings between statutory entities and other persons
25Board’s role
26Accountability of members to responsible Minister
27Responsible Minister’s role
27AMonitor’s role
28Method of appointment of members
29Criteria for appointments or recommendations by responsible Minister
30Qualifications of members
31Requirements before appointment
32Term of office of members
33Elected, co-opted, etc, members
34Validity of members’ acts
35Validity of appointments
36Removal of members of Crown agents
37Removal of members of autonomous Crown entities
38Removal of elected members of Crown agents and autonomous Crown entities
39Removal of members of independent Crown entities
40Just cause
41Process for removal
42Judges serving as members
43No compensation for loss of office
44Resignation of members
45Members ceasing to hold office
46Member of corporation sole not to hold concurrent office
47Remuneration of members
48Expenses of members
49Entity must act consistently with objectives, functions, statement of intent, and statement of performance expectations
50Manner in which functions must be performed
51Entity must operate in financially responsible manner
52Subsidiaries and other interests
53Duty to comply with this Act and entity’s Act
54Duty to act with honesty and integrity
55Duty to act in good faith and not at expense of entity’s interests
56Duty to act with reasonable care, diligence, and skill
57Duty not to disclose information
58Accountability for collective board duties
59Accountability for individual duties
60Court actions requiring or restraining board or members
61When members may rely on certain information and advice
62When interests must be disclosed
63Obligation to disclose interest
64Who disclosure of interests must be made to
65What must be disclosed
66Consequences of being interested in matter
67Consequences of failing to disclose interest
68Permission to act despite being interested in matter
69Entity may avoid certain acts done in breach of conflict of interest rules
70What is fair value
71Onus of proving fair value
72Effect of avoidance on third parties
73Ability to delegate
74Powers of delegate
75Effect of delegation on entity or board
76Revocations of delegations
77Vacancies in membership of board
78Appointment of chairperson, etc, and board procedure
79Formation and acquisition of shares in Crown entity companies
80Restrictions relating to shares in Crown entity companies
81Crown entity company must have constitution stating it is Crown entity
82Constitution must be presented to House of Representatives
83Shares to be held by person holding office as Minister
84Appointment of representative of shareholding Minister
85Interface with Companies Act 1993 and other Acts
86Board’s role
87Accountability of members to shareholding Ministers
88Shareholding Ministers’ role
88AMonitor’s role
89Criteria for appointments by shareholding Minister
90Members must disclose interests before appointment
91No compensation for removal from office
92Duty to act consistently with objectives, functions, statement of intent, and statement of performance expectations
94Accountability for collective board duties
95Duty to comply with this Act and entity’s Act
96Acquisition of subsidiaries
97Subsidiaries: rules applying to all Crown entities
98Subsidiaries: rules applying only to statutory entities
99Application to multi-parent subsidiaries
100Acquisition of shares or interests in companies, trusts, and partnerships, etc
101Corporation sole may not acquire interests in bodies corporate
102Interface with Companies Act 1993 and other Acts
103Power to direct Crown agents to give effect to government policy
104Power to direct autonomous Crown entities to have regard to government policy
105No power to direct independent Crown entities or Crown entity companies on government policy unless provided in another Act
106Directions to members and office holders of entities
107Directions to support whole of government approach
108Process for giving directions under section 107
109House of Representatives may resolve to disapply direction under section 107
110Obligation to give effect to direction
111Publication of direction under section 107
112Power to add functions if authorised by entity’s Act or constitution
113Safeguarding independence of Crown entities
114Crown entities must comply with directions given under statutory power of direction
115Procedure for ministerial directions on government policy
115AReview and expiry of all directions
116Employment of employees
117Employment of chief executive
118Crown entity to be good employer
119Application of clauses 12 to 14 of Schedule 8 of the Public Service Act 2020
120Protections from liabilities of statutory entity
121Immunity from civil liability
122Indemnities in relation to excluded act or omission
123Insurance for liability of member, office holder, or employee
124Saving of judicial protections from liability
125Breach of indemnity and insurance limits
126Definitions for protections from liability
127Method of contracting
130Address for service
131Application of Ombudsmen Act 1975 and Official Information Act 1982
132Review of Crown entity’s operations and performance
133Power to request information
134Good reasons for refusing to supply requested information
135Members, office holders, and employees are officials
136Interpretation for this Part
137Application of this subpart
138Purpose of statement of intent
139Obligation to prepare statement of intent
139AMinister may require Crown entity to prepare new statement of intent at any time
139BMinister may grant extension of time for, or waive, requirement to provide statement of intent
139CResponsible Minister may grant extension of time for requirement to provide statement of intent: COVID-19 [Repealed]
140Statement of intent for newly established Crown entities
141Content of statement of intent
142Extra information required in statement of intent for first financial year [Repealed]
143Exemption for certain outputs [Repealed]
144Application and term of statement of intent
145Ministerial involvement in statements of intent
146Process for providing statement of intent to responsible Minister
147Amendments to final statement of intent by responsible Minister
148Amendments to final statement of intent by Crown entity
149Obligation to publish and present statement of intent
149AObligation to publish and present amendments to statement of intent
149BPurpose of statement of performance expectations
149CObligation to prepare statement of performance expectations
149CAResponsible Minister may grant extension of time for obligation to prepare statement of performance expectations: COVID-19 [Repealed]
149DStatement of performance expectations for newly established Crown entities
149EContent of statement of performance expectations
149FExemption for certain outputs
149GForecast financial statements
149HMinisterial involvement in statements of performance expectations
149IProcess for providing statement of performance expectations to responsible Minister
149JAmendments to final statement of performance expectations by responsible Minister
149KAmendments to final statement of performance expectations by Crown entity
149LObligation to publish and present statement of performance expectations
149MObligation to publish and present amendments to statement of performance expectations
150Obligation to prepare, present, and publish annual report
150ASpecial annual reporting requirements
151Form and content of annual report
152Disclosure of payments in respect of members, committee members, and employees
153Form and content of statement of performance
154Annual financial statements
155Statement of responsibility
156Audit report
156AApplication of this subpart to Crown entity groups
156BMinister of Finance may require additional reporting
157Multi-parent subsidiaries part-owned by school board
157AOther multi-parent subsidiaries
158Bank accounts of Crown entities
159Application of acquisition of financial products, borrowing, guarantees, indemnities, and derivatives rules
160Further provision relating to acquisition of financial products, borrowing, guarantees, indemnities, and derivatives rules
161Restrictions on acquisition of financial products
162Restrictions on borrowing
163Restrictions on giving of guarantees and indemnities
164Restrictions on use of derivatives
165Net surplus payable by certain statutory entities and Crown entity companies
166Capital charge payable by certain statutory entities
168Accounting records to be kept
169Taxation of statutory entities
170Responsible Minister may set standards, terms, and conditions in respect of certain classes of outputs
172Penalties for offences
173Regulations under this Part
174Minister of Finance instructions
175Consultation with House of Representatives on reporting standards
176Application of provisions of Public Finance Act 1989
177Application of liquidation provisions of Companies Act 1993 to statutory entities
178Application of Archives Act 1957
179Public Bodies Contracts Act 1959 does not apply to Crown entities
180Local Authorities (Members’ Interests) Act 1968 does not apply to Crown entities
181Administration of Crown entity provisions
182Existing members exempt from qualification requirements [Repealed]
183Term of office of existing members other than ex officio members [Repealed]
184Term of office of existing ex officio members [Repealed]
185Term of office of existing chairpersons and deputy chairpersons
186Continuation of existing board committees
187Continuation of existing employment
188Existing compensation provision
189Existing protection from liability provisions
190Existing insurance cover
191Existing rights under Government Superannuation Fund Act 1956 unaffected
192Existing delegations and directions to continue
193Other existing things protected
194Existing shareholdings in Crown entity subsidiaries
195Existing bank accounts [Repealed]
196Existing law on securities, borrowing, guarantees, indemnities, and derivative transactions continues to apply until 1 April 2005 [Repealed]
197Continuation of pre-1 April 2005 securities, borrowing, guarantees, indemnities, and derivative transactions
198Reporting obligations in respect of financial years ending before 1 July 2006
199Regulations for transitional, savings, and general purposes
199AApplication, savings, and transitional provisions relating to amendments to Act
200Amendments to other enactments
201Amendment to Gas Amendment Act 2004