1Draft statement of intent

1. The board of a council-controlled organisation must deliver a draft statement of intent—

2. to its shareholders; and
3. in the case of an organisation that is indirectly controlled by 1 or more local authorities (for example, a subsidiary of a holding company owned by a local authority), to each local authority that indirectly controls the organisation.

4. The draft statement of intent must be delivered on or before 1 March in the year preceding the financial year to which the draft statement of intent relates.

2Consideration of shareholder comments

1. The board must consider any comments on the draft statement of intent that are made by the shareholders, and by local authorities with indirect control, or by any of them, on or before 1 May in the year preceding the year to which the draft statement relates.

3Final statement of intent

1. The board must deliver the completed statement of intent to the shareholders before the commencement of the financial year to which it relates.

4Shareholding local authority may extend deadlines by up to 1 month

1. The shareholders of a council-controlled organisation may, by written notice, extend a deadline specified in clause 1(2), 2, or 3 for a period or periods not exceeding in total 1 calendar month.

4A2023/2024 statement of intent (Repealed)

5Modifications of statements of intent

1. The board may, by written notice, modify a statement of intent at any time if the board has first—

2. given written notice to the shareholders of the proposed modification; and
3. considered any comments made on the proposed modification by the shareholders or by any of them within—
   1. 1 month after the date on which the notice under paragraph (a) was given; or
   2. any shorter period that the shareholders may agree.

6Modifications of statements of intent by resolution of shareholders

1. The shareholders of a council-controlled organisation may, by resolution, require the board to modify the statement of intent in the manner specified in the resolution.

2. Every modification that is required by a resolution under subclause (1) must be—

3. consistent with the objectives of the constitution; and
4. lawful.

5. Before making a resolution under subclause (1), the shareholders must consult the board as to the proposed content of the resolution.

6. As soon as practicable after receiving a resolution that complies with subclause (2), the board must—

7. prepare and adopt a modified statement of intent that incorporates the modifications in the resolution; and
8. deliver the modified statement of intent to each shareholder within 1 month of the date of its adoption; and
9. make the modified statement of intent publicly available within 1 month of the date of its adoption.

10. Subclause (1) applies despite any other provision of this Act or of the constitution of the council-controlled organisation.

7Content of statement of intent

1. The statement of intent for a council-controlled organisation must include the information described in subclause (2)—

2. for the group comprising the council-controlled organisation and its subsidiaries (if any); and
3. in respect of the financial year to which it relates and each of the immediately following 2 financial years.

4. The information required by subclause (1) is—

5. the objectives of the group; and
6. a statement of the board’s approach to the governance of the group; and
7. the nature and scope of the activities to be undertaken by the group; and
8. the non-financial performance targets and other measures by which the performance of the group may be judged in relation to its objectives; and
9. any additional information that is required to be included in the statement of intent.

8Additional content of statement of intent

1. This clause applies to a council-controlled organisation that provides services, other than under a contract or similar arrangement, in relation to the following groups of activities:

2. water supply:
3. sewerage and the treatment and disposal of sewage:
4. stormwater drainage:
5. flood protection and control works:
6. the provision of roads and footpaths.

7. The council-controlled organisation’s statement of intent must state the matters in subclause (3) in relation to each group of activities described in subclause (1).

8. The matters required by subclause (2) are—

9. any performance measures specified in a rule made under section 261B in relation to a group of activities described in subclause (1); and
10. the performance target or targets of the council-controlled organisation for each performance measure.

9Additional content of statement of intent of council-controlled trading organisations

1. The statement of intent for a council-controlled trading organisation must include, as well as the information required by Part 2 of this schedule, the following information:

2. the major accounting policies of the organisation or group; and
3. the ratio of consolidated shareholders’ funds to total assets, and the definitions of those terms; and
4. an estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholders; and
5. the board’s estimate of the commercial value of the shareholders’ investment in the group and the manner in which, and the times at which, that value is to be reassessed.

10Additional content of statement of intent of council-controlled organisations that are not trading organisations

1. The statement of intent for a council-controlled organisation that is not a council-controlled trading organisation must include, as well as the information required by Part 2 of this schedule, the following information:

2. the major accounting policies of the organisation or group; and
3. forecast financial statements of the organisation for the financial year to which the statement of intent relates, and each of the 2 following financial years.