Crown Entities Act 2004

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

100: Acquisition of shares or interests in companies, trusts, and partnerships, etc

You could also call this:

"Crown entities must follow rules when buying shares or interests in companies, trusts, or partnerships."

If you are a Crown entity, you must make sure you do not buy shares in a company that would give you a lot of influence over that company. You also must not buy an interest in a partnership or a trust, unless you follow certain rules. You need to tell your parent Crown entity or the responsible Ministers in writing before you do any of these things, and you must do them in a way that is outlined in your statement of intent or by the responsible Ministers. You can only do these things if it helps you carry out your jobs and is consistent with your goals, and if you are acting under an Act of Parliament or your own constitution, and you must understand what substantial influence means, which is being able to affect a company's financial or operating policies. If you are buying a Crown entity subsidiary, this section does not apply to you, and instead you should look at section 96.

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

100Acquisition of shares or interests in companies, trusts, and partnerships, etc

  1. A Crown entity must ensure that the entity does not—

  2. acquire shares in a company that gives the entity substantial influence in or over that company; or
    1. acquire an interest in any partnership, joint venture, or other association of persons, or an interest in a company other than in its shares; or
      1. settle, or be or appoint a trustee of, a trust,—
        1. other than—
        2. after written notice to its parent Crown entity (in the case of a Crown entity subsidiary) or to the responsible Ministers (in the case of any other Crown entity); and
          1. in accordance with the procedures and conditions contained in its statement of intent or specified by the responsible Ministers; and
            1. for the purpose of the Crown entity carrying out any of its functions, and acting consistently with its objectives, under any Act and its constitution (if any).
              1. Substantial influence, in relation to a company, means the capacity to affect substantially either the financial or operating policies, or both, of the company.

              2. This section does not apply if the entity acquires a Crown entity subsidiary (in which case section 96 applies).