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 according to the rules."

The board of a Crown entity company is in charge of managing the company's business and affairs, as stated in section 128(1) of the Companies Act 1993. You can think of the board as the group of people who make sure the company is run properly. The board must do its job according to this Act and the Crown entity's own Act, if it has one.

The board has to follow the rules in section 128(1) of the Companies Act 1993 when making decisions. This means the board must consider the rules of the Crown Entities Act and the company's own rules when managing the business.

There is another part of the Companies Act, section 128(3), that talks about special rules or exceptions for companies, and this part still applies even with the board's responsibilities.

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


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

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


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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

  1. 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.

  2. 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).

  3. 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).