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Owner's Expectations Manual

5.3  Submission and review of business plan and draft SCI

  • Each SOE board provides shareholding Ministers with a draft SCI, supported by the company's business plan. The business plan enables shareholding Ministers and COMU's officials to assess the draft SCI.
  • The SOE Act requires the board of each SOE to deliver its draft SCI to shareholding Ministers at least one month before the start of each financial year (ie, the end of May). Shareholding Ministers' preference, however, is that SOEs provide their draft SCIs and business plans at the start of May to allow adequate time for meaningful review. If, for any reason, an SOE considers that it cannot meet this deadline, it should contact COMU as early as possible.
  • Sections 14(2) and (3) of the SOE Act set out the information to be contained in each SOE's SCI, including the objectives of the group, the nature and scope of its activities and the performance targets by which the group may be judged in relation to its objectives. Refer to Section 5.5 for more details. Each SOE's SCI should clearly identify the information required by these sections of the SOE Act, and make clear linkages between objectives and performance targets.
  • Shareholding Ministers expect the performance targets and measures in each SCI to be meaningful and related to the drivers of each SOE's performance.
  • Once the business plan and draft SCI are received, officials prepare a report for shareholding Ministers outlining the key aspects of each SOE's future strategy. As part of this process, advisors will engage with the companies to clarify any questions arising out of the business plan and draft SCI. To facilitate this, it is expected that each SOE will submit with its business plan a full set of financial statements (including a statement of financial performance, statement of financial position and statement of cash flows) for the planning period.
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