Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity companies - Role and accountability of members

86: Board's role

You could also call this:

"The board's job is to manage the company and make decisions following the law."

Illustration for Crown Entities Act 2004

You are part of a Crown entity company. The company's business and affairs are managed by its board. The board must follow the rules in the Companies Act 1993, specifically section 128(1). The board must also follow this Act and the entity's own Act (if it has one). You need to know the board has duties under the Companies Act 1993. The board must do its duties according to this Act and the entity's Act. This does not change the rules in section 128(3) of the Companies Act 1993. The board's role is important in managing the company. The board must work within the rules of the Companies Act 1993 and this Act. This helps the company run smoothly and follow the law.

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This page was last updated on 30 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330325.

Topics:

Business > Industry rules

85: Interface with Companies Act 1993 and other Acts, or

"How Crown entity companies follow the Companies Act and other laws"

87: Accountability of members to shareholding Ministers, or

"Members of Crown entity companies are responsible to the Government for their actions."

Part 2Establishment and governance of Crown entities
Crown entity companies: Role and accountability of members

86Board's role

In accordance with section 128(1) of the Companies Act 1993, the business and affairs of a Crown entity company must be managed by, or under the direction or supervision of, the board of the company.
The board of a Crown entity company must exercise its duties under section 128(1) of that Act in accordance with this Act and the entity's Act (if any).
Subsection (2) does not limit section 128(3) of the Companies Act 1993 (which relates to modifications, exceptions, or limitations contained in that Act or in the company's constitution).