Review of Commonwealth Government Business Enterprises ...

5.10 The above requirements relating to GBEs establishing subsidiaries do not apply to cases in
which a GBE is undertaking equity investment and promotion of companies as part of its
day-to-day business operations (for example, a GBE which provides fnancial services as its
core function) provided the Shareholder Minister(s) have notifed the GBE of the types of
investments which are exempt.
5.11 Where a GBE, or one of its subsidiaries, becomes involved in a joint venture the GBE
should ensure that the reporting and control arrangements relating to the joint venture
enable the GBE to satisfactorily meet its obligations under the GBE Guidelines.
5.12 The Shareholder Minister(s) should ensure that there are no provisions in enabling
legislation, company constitution, guidelines to directors or shareholders´ agreements of a
GBE which would prevent the GBE from complying with the requirements outlined above
relating to subsidiaries and joint ventures.
Arrangements for GBEs Being Established, Sold, Restructured
or Wound Up
5.13 These Guidelines apply in full to a wholly-owned GBE during an establishment, sale
or restructuring, or winding-up process, until the Shareholder Minister(s) decide(s) on
variations to facilitate the establishment, sale/restructuring or winding-up process and to
streamline reporting. The board will be advised of variations.
5.14 Where a decision has been taken to sell all or part of the Commonwealth’s interest in a
GBE, or where the possibilities of sale are being explored, the board and management
of the GBE are required to provide full co-operation and requested information to the
government during the period leading up to the sale.
Exposure Draft
61