Guidance for Statutory Crown Entities - Resource for Preparation of Governance Manuals

Update: In June 2018, the State Services Commission published an update to its Conflicts of Interest guidance

Update: March 2014 to reflect changes made to State sector legislation in 2013.

Please note that the guidance is not prescriptive.  Entities should ensure the issues are covered in their own documentation, while allowing for the context of the entity concerned, and tailoring the material appropriately.  This guidance does not cover all topics relevant to governance, and many boards' manuals will need to include additional material to suit their legal circumstances and particular activities.

Coverage of this guidance

This guidance applies to Crown Agents, Autonomous Crown Entities and Independent Crown Entities and their subsidiaries (excluding District Health Boards and Corporations Sole). This guidance does not apply to Crown entity companies, Tertiary Education Institutes or School Boards of Trustees. To locate information sources for these entities refer to publicservice.govt.nz/crown-entity-governance.

Every statutory Crown entity is expected to have a board governance manual that reflects good practice standards.

Governance includes the processes by which organisations are directed, controlled and held to account. 

This guidance seeks to improve the standard of governance manuals so that board members are able to meet the expectations of Ministers.  It also aims to strengthen the public's trust by promoting consistent practices in key areas, such as declaring interests or dealing with gifts.

This guidance is a resource to support the preparation of such manuals, recognising that the fundamentals of good governance are common to all entities, despite their widely-differing roles and relationships.

Crown entity governance is different from governance in the private or not-for-profit sectors.  Governance in the State sector has added obligations and complexities derived from the ethos of public service, the ministerial role and relationships, and the impact that Crown entities have on individuals, business and communities in New Zealand.

This guidance is intended for those people charged with developing, implementing and maintaining a board's governance manual.  Many Crown entities already have well-developed governance manuals and guidance; others may cover some but not all topics fully. The guidance should be used to ensure that all boards have a governance manual that meets good practice requirements across the range of topics.

The guidance is not prescriptive.  Entities should ensure the issues are covered in their own documentation, while allowing for the context of the entity concerned, and tailoring the material appropriately. 

This guidance does not cover all topics relevant to governance, and many boards' manuals will need to include additional material to suit their legal circumstances and particular activities.

Guidance documents are in themselves not enough to guarantee appropriate behaviour and practices.  They need to be supplemented by internal procedures that are followed and respected, and that will assure stakeholders that the entity concerned takes its obligations as part of the State services seriously.

Further advice on the implementation of this guidance can be sought from the Chief Legal Advisor, State Services Commission, phone (04) 495-6600 or email commission@publicservice.govt.nz.  If you have questions that particularly relate to chapters 14 and 15, in the first instance please contact your monitoring department.  General enquiries on these two chapters can be emailed to performanceinfo@treasury.govt.nz.