Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity companies - Appointment and removal of members

89: Criteria for appointments by shareholding Minister

You could also call this:

"How the Minister chooses people to be on a Crown company team"

When a shareholding Minister appoints members to a Crown entity company, they must follow the rules set out in the Act or the company's constitution. You need to have the right knowledge, skills, and experience to be appointed, so the Minister can be sure the company will be managed well and achieve its goals. The Minister also thinks about whether the appointment will bring more diversity to the company.

The Minister chooses who to appoint based on their own opinion of whether the person is suitable. They consider what is best for the company and its objectives. The Minister wants to make sure the company has a good mix of people with different backgrounds and ideas.

If you are a member of Parliament, you cannot be a member of a Crown entity company, as this is not allowed under the rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330330.


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Part 2Establishment and governance of Crown entities
Crown entity companies: Appointment and removal of members

89Criteria for appointments by shareholding Minister

  1. A shareholding Minister of a Crown entity company must appoint members in accordance with any criteria for members, and any process for appointment, set out under this Act or another Act or the company's constitution.

  2. A shareholding Minister—

  3. may only appoint a person who, in the shareholding Minister's opinion, has the appropriate knowledge, skills, and experience to ensure the sound management of the Crown entity company and to assist the company to achieve its objectives and perform its functions; and
    1. subject to subsection (1), in appointing, must take into account the desirability of promoting diversity in the membership of Crown entities.
      1. A member of Parliament is disqualified from being a member of a Crown entity company.