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Information for New Members of Crown Entity Boards Crown copyright: State Services Commission, February 2014 1 1 Slide 2 Outline of content 1What are Crown entities and where do they fit in the State services environment? 2How do Ministers influence Crown entities? 3Accountability and scrutiny of Crown entities 4Developing effective relationships 5Governing a Crown entity 6Expectations of board members 7Applying public sector values 8Additional resources Crown copyright: State Services Commission, February 2014 2 Slide 3 6A lot is expected of board members collectively, and individually 3 Crown copyright: State Services Commission, February 2014 Slide 4 Collectively, boards of statutory entities are expected to Act consistently with the entitys objectives, functions, the current SOI and, from 1 July 2014, the Statement of Performance Expectations Ensure that the entity performs its functions efficiently and effectively, in a manner consistent with the spirit of service to the public, and in collaboration with other public entities (where practicable) Ensure the entity operates in a financially responsible manner, by prudently managing its assets and liabilities and endeavouring to ensure long-term financial viability 4 Crown copyright: State Services Commission, February 2014 Slide 5 Individually, board members are expected to Comply with the Crown Entities Act, their entitys enabling Act and other relevant legislation Act with honesty and integrity Act in good faith and not at the expense of the entitys interests Act with reasonable care, diligence and skill (as a reasonable person would in the same circumstances) Avoid disclosing information obtained in their capacity as a member, unless in specified circumstances Note: Both the board and its individual members can be sanctioned for a breach of duties 5 Crown copyright: State Services Commission, February 2014 Slide 6 In terms of performance assurance Boards have the primary responsibility for monitoring and reporting on a Crown entitys performance they must know what is happening in their agency Ministers have both a need and a right to know - boards should provide information on which valid judgments can be made about an entitys performance Boards are expected to work constructively with Ministers and monitoring departments to identify the performance measures and standards that will support accurate and appropriate judgments about the Crown entity's performance and progress 6 Crown copyright: State Services Commission, February 2014 Slide 7 Liabilities and indemnities The Crown Entities Act gives individual members and other personnel immunity from civil liability when they have acted in good faith in performance or intended performance of the entitys functions There is no immunity from criminal liability A board may indemnify and insure its members and other statutory entity personnel An office holder or employee will not be covered for any act or omission made in bad faith and/or not conducted in the performance or intended performance of the entitys functions 7 Crown copyright: State Services Commission, February 2014