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Crown Entities Act 2004

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

87: Accountability of members to shareholding Ministers

You could also call this:

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

If you are a member of a Crown entity company, you must follow certain rules. You have to comply with the board's collective duties, which are explained in sections 92 and 93, and your individual duty, which is explained in section 95. You also have to follow any directions that apply to the company under subpart 1 of Part 3.

As a member, you are accountable to the shareholding Ministers for doing your job properly under this Act. This means you have to answer to them for your actions as a member.

You still have duties to the company under Part 8 of the Companies Act 1993, and this section does not change those duties, which you can find out more about via the Companies Act 1993.

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Topics:
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86: Board's role, or

"The board's job is to manage the company and make decisions according to the rules."

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88: Shareholding Ministers' role, or

"Ministers who help manage government-owned companies"

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

87Accountability of members to shareholding Ministers

  1. Members of a Crown entity company must comply with—

  2. the board's collective duties (in sections 92 and 93); and
    1. the individual duty (in section 95); and
      1. any directions applicable to the company under subpart 1 of Part 3.

        1. Members are accountable to the shareholding Ministers for performing their duties as members under this Act.

        2. This section does not affect individual directors' duties that are owed to the company under Part 8 of the Companies Act 1993.