Review of Commonwealth Government Business Enterprises ...

The key topics identifed for discussion are:
• Mandate and objectives:
- Clarifying the process for the review of the mandate and objectives of a GBE.
• Public sector accountability:
- Clarifying matters for inclusion in letters of appointment for directors and Chief Executive
Offcers (CEOs);
- Establishing a requirement for new directors to formally respond to letters of appointment,
giving an undertaking to the Shareholder Minister(s) that they will advise them of any
matters which may impact on their ability to be a director;
- Formally requiring boards to establish, document and maintain a code of conduct and
conficts policy;
- Establishing a general requirement for GBEs to behave in a politically impartial manner; and
- Guidance on taxation planning.
• Board appointments and performance:
- Establishing guidance on appointment processes to ensure that high-calibre directors
are appointed to GBE boards, and that appointment processes are open, transparent,
defensible and aligned with government policy objectives;
- Establishing guidance on the tenure of directors to maintain a balance between introducing
new skills and ideas and business continuity, and outlining the need for directors to attend
all board meetings;
- Incorporating a general requirement for board induction, training and performance
reviews; and
- Including a general requirement to renew board committee charters and composition annually.
• Guidance on the role of CEOs:
- Providing guidance on the Commonwealth’s preference for the appointment of CEOs to
facilitate clear board governance practices; and
- Establishing a general requirement for GBEs to implement and maintain a succession plan
for CEOs.
• Planning and reporting requirements:
- Providing guidance for publishing Statements of Corporate Intent (SCI) on GBE websites
and reporting on performance against the SCI’s broad objectives in GBE annual reports to
enhance transparency;
- Formally adopting quarterly performance reporting (which is the basis under which the
vast majority of GBEs report in practice) and outlining key features that each report should
provide to enhance transparency;
- Establishing minimum requirements for fnancial and non-fnancial performance indicators
to be included in Corporate Plans and progressively reported against;
- Establishing guidelines for the preparation and presentation of business cases;
- Providing additional guidance on the setting of fnancial targets;
- Including a requirement to hold Annual General Meetings; and
- Including a general requirement for risk management to be addressed in Corporate Plans
and performance reports in order to increase transparency and accountability of GBE risk
management practices;
Exposure Draft
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