Part 2Establishment and governance of Crown entities
Crown entity companies: Collective duties of board
94Accountability for collective board duties
The duties of the board and members of a Crown entity company under sections 92 and 93 (collective duties) are duties owed to the shareholding Ministers.
If a board does not comply with any of its collective duties, all or any of the members may be removed from office.
However, subsection (2) does not apply to a member if—
- he or she did not know and could not reasonably be expected to know that the duty was to be or was being breached; or
- he or she took all reasonable steps in the circumstances to prevent the duty being breached.
A member is not liable for a breach of a collective duty under this Act, except for being removed from office as provided for in subsection (2).
This section does not affect any other ground for removing a member from office or section 156 of the Companies Act 1993 (which relates to the process for removal of a company director).
Subsection (4) does not affect—
- anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach; or
- the right to apply for a court order under the Companies Act 1993.