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Crown-Owned Entity Companies

Page updated 28 Sep 2015

Other Crown-owned companies - companies that are not state-owned enterprises or Crown Research Institutes - are generally established by the Crown to further certain policy objectives.

The objectives are entity-specific and can be a mix of social, cultural, public policy and commercial goals. This entity form is used where the context or environment in which a function is to be undertaken is not fully commercial or the entity undertaking a function has mixed objectives. 

We split this group into two sub categories:


Other Crown entity companies

Crown entity companies are wholly owned by the Crown; shares may be held only by Ministers. Crown entity companies monitored by the Treasury include the New Zealand Venture Investment Fund, Radio New Zealand, and Television New Zealand.

Crown entity companies are registered as public companies and are bound by the provisions of the Companies Act 1993. They are also are subject to relevant provisions of the Crown Entities Act 2004.

Information on individual Schedule 4A companies is located at Portfolio of Entities: Other Crown Entity Companies.

Companies listed on Schedule 4A of the Public Finance Act 1989

Through the Public Finance Act 1989, some accountability provisions of the Crown Entities Act usually apply. This form of entity is used where the Crown may wish to establish a company other than a state-owned enterprise, but it is not appropriate to establish the entity as a Crown entity company because:

  • joint ownership is necessary or desirable as the Crown intends to reduce its shareholding at some stage to somewhere between 50% and 100%; or
  • 'materiality' or 'distinctiveness' reasons indicate that a Crown entity company is not feasible or appropriate.

Companies listed on the Public Finance Act 1989 Schedule 4A are registered as public companies, and are bound by the provisions of the Companies Act 1993

Information on individual Schedule 4A companies is located at Portfolio of Entities: Companies listed on Schedule 4A of the Public Finance Act.

Statutory Crown Entities

Statutory Crown entities are generally established by the Crown to deliver many of the public services of importance to New Zealanders. They are wholly Crown-owned non-company entities with boards, and have been given greater operational freedom than government departments on the principle that services will be more efficiently produced if the entity has discretion within a framework. Each statutory Crown entity usually has its own establishing legislation and falls into one of the five categories of Crown entities subject to the Crown Entities Act 2004. The entity’s establishing legislation contains entity specific objectives. These objectives can contain a mix of social, cultural, public policy and commercial statements. A statutory Crown entity’s establishing legislation can expressly modify or negate provisions of the Crown Entities Act 2004.

There are three types of statutory Crown entities: Crown agents (Agents), autonomous Crown entities (ACEs) and independent Crown entities (ICEs). Each type of entity is subject to different provisions of the Crown Entities Act, depending on how close they are to the government.  For example, Agents must give effect to government policy, ACEs must have regard to government policy, but ICEs are not required to give effect to or have regard to government policy. ICE board members are appointed by the Governor-General on the recommendation of the Responsible Minister, while the Responsible Minister appoints board members for Agents and ACEs (excluding the board members who are elected). The removal of board members differs depending on the type of entity, how the person was appointed and who the appointer was.

Statutory Crown entities have non-commercial functions but some, like those monitored by the Treasury, have commercial imperatives: the New Zealand Superannuation Fund, the Government Superannuation Fund Authority, the Earthquake Commission, the investments of the Accident Compensation Corporation, the Public Trust and the New Zealand Lotteries Commission.

Amongst other things, statutory Crown entities are required to produce an annual Statement of Intent and an Annual Report, both of which are presented to the House of Representatives. Further information and guidance for Crown entities is located at Crown Entities.

 

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