Review of Commonwealth Government Business Enterprises ...

Partly Owned Subsidiaries of GBEs and Joint Ventures involving GBEs
5.2.1 Finance considers that the guidance in relation to Partly Owned GBEs, Partly Owned
Subsidiaries of GBEs and Joint Ventures Involving GBEs provides an appropriate framework
for the governance of subsidiaries, partly-owned GBEs and joint ventures within the
parameters of the various legislative requirements. The minor changes proposed refect
changes in legislation and legislative frameworks since the current GBE Guidelines were
issued, and refect the desire to capture requirements for new GBE subsidiaries.
5.2.2 To strengthen the guidance on the establishment and management of partly owned
subsidiaries of GBEs, Finance considers it appropriate to include some additional direction
on the makeup of subsidiary boards.
Proposed Change: (New)
5.8a. Where the GBE has any subsidiary it will ensure that control of the affairs of that
subsidiary will be exercised by a majority of the directors of that subsidiary, who
are directors or employees of the GBE or have been approved by the Shareholder
Minister(s) for appointment as directors of that subsidiary.
Exposure Draft