Crown Entities Act 2004

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

80: Restrictions relating to shares in Crown entity companies

You could also call this:

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

When you look at the rules for Crown entity companies, you find that Ministers have some restrictions. You cannot sell or get rid of shares in a Crown entity company that are in your name as a Minister. You also cannot let anyone else have new shares in a Crown entity company, except for another Minister who already owns shares.

If a company is being rebuilt or merged with another company, and the Crown's ownership of the shares does not change, you can get rid of shares as part of that process. You can also get rid of shares if a law says you can transfer ownership of them.

There are some special shares called redeemable preference shares that do not follow these rules. These shares must not be able to be changed into other types of shares, and they must not give the owner the right to vote at company meetings. You can compare this to s 11 to see how it relates to other laws.

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79: Formation and acquisition of shares in Crown entity companies, or

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


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81: Crown entity company must have constitution stating it is Crown entity, or

"Crown entity companies must have a constitution that says they are a Crown entity."

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

80Restrictions relating to shares in Crown entity companies

  1. No Minister may—

  2. sell or otherwise dispose of any shares in a Crown entity company held in the Minister's name; or
    1. permit shares in a Crown entity company to be allotted or issued to any person other than a shareholding Minister.
      1. However, despite subsection (1)(a), a Minister may dispose of shares—

      2. as part of a reconstruction or merger in which the Crown's interest in the shares of the company is not diluted; or
        1. if an Act authorises the transfer of ownership of shares of a Crown entity company.
          1. Subsection (1) does not apply to redeemable preference shares that—

          2. are not convertible into shares of any other class; and
            1. do not confer any rights to vote at any general meeting of the company.
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