Boards

Shareholding Ministers appoint boards to run each Crown company. CCMAU assists shareholding Ministers in the board appointment process.

Crown companies are established under the Companies Act 1993 and directors are required to meet the same obligations as directors of private sector companies (in addition to other legislative requirements).

Besides responsibilities outlined in the Companies Act 1993, Crown company boards have the following specific duties:

• appointing, managing and monitoring the performance of the chief executive,
• providing leadership and vision to maintain and enhance shareholder value and ensure the company’s long-term organisational health,
• developing and reviewing organisational strategy,
• identifying and managing risk,
• reviewing and approving the company’s capital investments and distributions,
• ensuring compliance with statutory requirements,
• providing leadership in the company’s relationships with key stakeholders,
• negotiating the Statement of Corporate Intent (SCI) or Statement of Intent (SOI) with shareholding Ministers,
• holding management responsible for meeting the performance measures/milestones in the SCI or SOI and strategic/business plan,
• developing the company’s strategic/business plan so that it receives shareholder support,
• establishing appropriate governance structures (such as board committees and clear lines of responsibility and accountability between the board and management).