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New Zealand law explained for everyone

Crown Entities Act 2004

Preliminary provisions

3: Purpose

You could also call this:

"This law is about how the government controls and is in charge of its organisations."

Illustration for Crown Entities Act 2004

The purpose of this Act is to change the law about Crown entities. You will see that it aims to create a consistent framework for how these entities are set up, governed, and run. This Act also wants to make clear how Crown entities are accountable to their board members, the Ministers responsible for them, and the House of Representatives.

This Act has several goals, including providing different categories for Crown entities, each with its own governance framework. You will find that this framework includes how much the Crown entity must follow government policy or work independently.

The Act also seeks to explain the roles and responsibilities of board members, such as ensuring the Crown entity manages its finances well. Additionally, it sets out what Crown entities must report on and how they are held accountable.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM329637.

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Government and voting > Government departments
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2: Commencement, or

"When the law starts"

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4: Application of Acts to Crown entities, or

"Crown entities must follow rules from several laws, including their own special law and general laws like the Companies Act and Public Service Act."

Part 1Preliminary provisions

3Purpose

  1. The purpose of this Act is to reform the law relating to Crown entities to provide a consistent framework for the establishment, governance, and operation of Crown entities and to clarify accountability relationships between Crown entities, their board members, their responsible Ministers on behalf of the Crown, and the House of Representatives, and, to that end,—

  2. to provide for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy):
    1. to clarify the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity:
      1. to set out reporting and accountability requirements.