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Owner's Expectations Manual

1 Introduction

  • The Treasury's Crown Ownership Monitoring Unit (COMU) has reviewed the Owner's Expectations Manuals for the entities it monitors[1], and has consolidated these into a single, modular, streamlined Owner's Expectations Manual (the manual).
  • The manual outlines shareholding Ministers' expectations of the companies fully or jointly owned by the Crown (which are set out in Annex 1). NZX- listed companies which the Crown has a shareholding in (such as Air New Zealand Ltd) are subject to separate requirements as established under NZX listing rules and are not subject to this manual. The expectations are targeted towards the State-owned enterprises (SOEs). Many of these principles and expectations can be applied to the following Crown-owned entities and companies, where appropriate:
    • Crown-owned companies
    • other Crown companies - ie, Crown entity companies and Schedule 4 companies
    • statutory entities
    • regional airports, and
    • Crown financial institutions (CFIs).[2]
  • The expectations for the above entities and companies are set out in Chapter 10. The expectations outlined in this manual do not apply to Crown research institutes (CRIs).
  • The manual is designed to help boards operate effectively in their roles and to clarify their responsibilities. It also takes account of the particular expectations of board members, as opposed to private or publicly listed companies.
  • The manual is complemented by the expectations letter sent by shareholding Ministers to boards at the outset of the annual business planning round. The expectations letter covers entity/company-specific issues and expectations.
  • This manual should be read in conjunction with relevant legislation such as the Companies Act 1993 (Companies Act), Crown Entities Act 2004 (CE Act), Public Finance Act 1989 (PFA), State-Owned Enterprises Act 1986 (SOE Act) and other entity-specific legislation like the New Zealand Railways Corporation Act 1981 for KiwiRail Group, or establishment Acts for each Crown entity.
  • Over time, as processes, policies and expectations change, COMU will update only those sections of the manual.

1.1 Who should read this manual?

  • This manual is prepared to provide guidance to boards, chief executives, senior leaders and staff of companies and entities monitored by COMU. Some chapters, like Chapter 9 of the manual, are targeted more towards directors and Chairs. Those involved in the management of the companies are encouraged to read the entire manual to ensure that they understand the accountability requirements and the expected standards of reporting.


  • [1]A list of entities/companies that are covered by this manual is at Annex 1.
  • [2]Crown financial institutions (CFIs) is a term used to describe Crown entities that have specific responsibilities relating to the management and investment of significant Crown financial assets
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