Crown Entities Act 2004

Crown entity reporting and financial obligations - Other provisions for financial accountability - Miscellaneous

165: Net surplus payable by certain statutory entities and Crown entity companies

You could also call this:

"When companies owned by the government make a profit, they might have to give some money back to the government."

Illustration for Crown Entities Act 2004

The Minister of Finance can ask a statutory entity or Crown entity company to pay some money to the Crown if they have a net surplus. You need to know that a net surplus is when a company makes a profit or has extra money saved up. The Minister of Finance must talk to other ministers and the entity itself before making this request.

When the Minister of Finance asks for this money, it's based on how much profit the entity made, using standard accounting rules or another method they agree on. You can find out more about exemptions in Schedule 1 or Schedule 2.

The entity still has to follow its own rules about paying money to the Crown, and if it's a company, it also has to follow the Companies Act 1993 rules about giving out money to shareholders.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330571.

Topics:

Government and voting > Government departmentsBusiness > Industry rules

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Part 4Crown entity reporting and financial obligations
Other provisions for financial accountability: Miscellaneous

165Net surplus payable by certain statutory entities and Crown entity companies

Unless an exemption is granted in Schedule 1 or Schedule 2, the Minister of Finance may, in writing, require a statutory entity or Crown entity company to pay to the Crown a sum equal to the whole or any part of a net surplus of the statutory entity or Crown entity company, or its Crown entity group, as determined in accordance with generally accepted accounting practice or any other basis that may be agreed between that Minister and the entity.
In this section, net surplus includes both an annual profit and an accumulated surplus.
Before the Minister of Finance issues a requirement under this section,—
the Minister of Finance must consult with each responsible Minister; and
a responsible Minister must consult with the Crown entity.

This section does not limit any provision for the payment of an annual distribution or similar payment to the Crown under the entity's Act.
This section does not limit the need for a Crown entity company to comply also with the provisions of the Companies Act 1993 (or its constitution, if relevant) relating to distributions.