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
A Crown entity must ensure that the entity does not—
- acquire shares in a company that gives the entity substantial influence in or over that company; or
- 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
- settle, or be or appoint a trustee of, a trust,—
- 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
- in accordance with the procedures and conditions contained in its statement of intent or specified by the responsible Ministers; and
- 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).
Substantial influence, in relation to a company, means the capacity to affect substantially either the financial or operating policies, or both, of the company.
This section does not apply if the entity acquires a Crown entity subsidiary (in which case section 96 applies).