Owner’s Expectations Manual for State-Owned Enterprises

1. INTRODUCTION

This manual outlines shareholding Ministers’ expectations of the directors of state-owned enterprises (SOEs). It is designed to help boards to operate efficiently in their roles and to clarify their responsibilities. It also takes account of the particular expectations of board members in companies owned by the Crown, as opposed to private or publicly listed companies.

The manual is not intended to replace the outlook letters sent by shareholding Ministers at the outset of the annual business planning round, which cover specific issues and expectations for individual SOEs.

The manual should be read in conjunction with relevant legislation such as the Companies Act 1993 (Companies Act) and the State-Owned Enterprises Act 1986 (SOE Act) which place certain obligations on SOEs. It should also be read in conjunction with other current expectations and ownership policies previously communicated to SOE boards.

The manual applies only to SOEs and not to Crown research institutes or other Crown entity companies.

The manual replaces the previous version of the Owner’s Expectations Manual and will be updated periodically as processes, policies and shareholding Ministers’ expectations change.

2. SOE Framework
3. Shareholder Roles and Responsibilities
4. SOE Reporting and Accountability
5. Social Responsibility
6. Financial Governance
7. Shareholder Consultation and Strategic Initiatives
8. Board Governance