Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity companies - Formation and shareholding of Crown entity companies

79: Formation and acquisition of shares in Crown entity companies

You could also call this:

"The government can buy shares in its own companies, but only if two or more Ministers agree, including the Minister of Finance."

When the government wants to buy shares in a company that is owned by the Crown, you need to know that it can only be done by two or more Ministers. One of these Ministers must be the Minister of Finance, who is in charge of the country's money.

The Ministers who buy shares in the company must all have the same number of shares, so it is fair and equal.

This rule only applies to companies that are owned by the Crown, and it does not stop the government from buying shares in other companies. It also applies to new companies that are being set up to be owned by the Crown, even if they are not yet listed in the Schedule 2 list of Crown companies.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330317.

Topics:

Government and voting > Government departmentsBusiness > Industry rules

78: Appointment of chairperson, etc, and board procedure, or

"How to choose a chairperson and run board meetings for government organisations"

80: Restrictions relating to shares in Crown entity companies, or

"Rules for Ministers about buying and selling shares in government companies"

Part 2Establishment and governance of Crown entities
Crown entity companies: Formation and shareholding of Crown entity companies

79Formation and acquisition of shares in Crown entity companies

Shares in a Crown entity company may be subscribed for, or otherwise acquired, on behalf of the Crown only by 2 or more Ministers.
One of those shareholding Ministers must be the Minister of Finance.
Each shareholding Minister of a Crown entity company must always hold the same number of shares in the Crown entity company as each other shareholding Minister of that Crown entity company.
This section does not limit the Crown's ability to subscribe for, or otherwise acquire, shares in a company that is not a Crown entity company.
This section applies also to a company that is being formed with the intention of becoming a Crown entity company, despite the fact that the company is not yet named in Schedule 2.