Corporate Governance in Government-Owned Companies in New Zealand: A Stock-Take

The New Zealand government's adoption in 1986 of the company model for its trading enterprises was a major development in the way in which government services and commercial operations were managed. It also marked a significant change in the role and functions of ministers, as the model changed them from day-to-day decision-makers into the equivalent of owners. Although the company model had received modest attention by governments and had existed in the private sector for decades, the formation of companies with boards for government operations led to a new and stronger focus on what has come to be known as "corporate governance". This article addresses how corporate governance evolved in the years following the formation of companies as "state-owned enterprises" in the New Zealand government trading environment. The discussion is based largely on a close personal involvement in the developments at a senior level in government and, more recently, as a director of a private consulting, training and advisory firm dealing with both government and private companies.