Page updated 20 Aug 2014
Overview of information relating to Crown entities, including the Crown Entities Act 2004 and relevant Treasury guidance material.
What is a Crown Entity?
Crown entities are bodies established by law in which the Government has a controlling interest - for example, by owning a majority of the voting shares or through having the power to appoint and replace a majority of the governing members - but which are legally separate from the Crown.
Section 7 of the Crown Entities Act 2004 outlines the five categories of Crown entity:
- Statutory entities - bodies corporate established through legislation;
- Crown entity companies - often previously known as Crown-owned companies;
- Crown entity subsidiaries - companies that are controlled by Crown entities;
- School boards of trustees - as constituted under the Education Act 1989; and
- Tertiary education institutes - polytechnics, universities and wananga.
Crown Entities Act 2004
The Crown Entities Act 2004 came into force on 25 January 2005. Part 4 of this legislation (concerning reporting and financial obligations) is administered by the Treasury, and the remainder by the State Services Commission.
The Crown Entities Act reformed the law relating to Crown entities and provided a consistent framework for the establishment, governance and operation of Crown entities. It also clarified accountability relationships between Crown entities, their board members, their responsible Ministers and the House of Representatives.
Guidance and Instructions
The guidance for Crown entities published by the Treasury can be divided into the following categories:
- Financial Powers - Crown Entities
- Implementation, Management, Monitoring Guidance on the Public Sector Performance and Financial Management System
- Accountability Information
- Monitoring by Departments
- Strategy Development
The State Services Commission also provides guidance on Crown entities, with particular focus on governance and monitoring, see www.ssc.govt.nz/crown-entities. Information on the directions to extend functional leadership requirements to certain Crown entities is provided at www.ssc.govt.nz/whole-of-govt-directions-2014.
Information about Crown Entities
The Treasury publishes the following information that also relates to Crown entities:
- Estimates of Appropriations - An appropriation provides a Vote Minister with authority to incur expenditure, expenses or liabilities. It establishes the maximum expense, liability or expenditure that can be incurred.
- Financial Statements of the Government - particularly the sections Information on SOEs and Crown Entities and Balance Dates
- Public Finance Overviews