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Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity subsidiaries - Formation and shareholding of Crown entity subsidiaries

98: Subsidiaries: rules applying only to statutory entities

You could also call this:

"Rules for statutory entities to manage their subsidiaries correctly"

If you are a parent company that is a statutory entity, you must make sure your subsidiaries do things correctly. You must ensure they work efficiently and effectively, and in a way that helps the public. They should also work with other public entities when possible, as described in the Public Audit Act 2001.

You must pay the people who work for your subsidiaries the right amount of money, as decided by you or after talking to the responsible Minister. Your subsidiaries must also follow the same rules as you do when it comes to their chief executives, as outlined in section 117.

These rules are in addition to the ones in section 97, and you must follow all of them.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330343.

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Part 2Establishment and governance of Crown entities
Crown entity subsidiaries: Formation and shareholding of Crown entity subsidiaries

98Subsidiaries: rules applying only to statutory entities

  1. A statutory entity (the parent) must ensure, to the extent that it is reasonably able to do so, that each of its Crown entity subsidiaries—

  2. performs its functions—
    1. efficiently and effectively; and
      1. in a manner consistent with the spirit of service to the public; and
        1. in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001) where practicable; and
        2. pays remuneration to members of the subsidiary only at a rate and of a kind determined by the parent in accordance with the fees framework or after consulting with the responsible Minister; and
          1. complies with the requirements as to chief executives set out in section 117 in the same way as the parent must do.

            1. Repealed

            2. The requirements of this section are additional to those in section 97.

            Notes
            • Section 98(1): amended, on , by section 19(1) of the Crown Entities Amendment Act 2013 (2013 No 51).
            • Section 98(1)(a): replaced, on , by section 19(2) of the Crown Entities Amendment Act 2013 (2013 No 51).
            • Section 98(1)(c): amended, on , by section 4(1) of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
            • Section 98(1A): repealed, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).