Appendix 2: Legislative requirements for statements of corporate intent and statements of intent

Statements of corporate intent: Legislative compliance and performance reporting.

CCOs and CCTOs* Crown Research Institutes Energy companies Port companies SOEs**
Statement of intent



Statement of corporate intent
Coverage over three financial years and updated annually
Content to be covered for the parent entity and its subsidiaries ("the group")
Objectives of the group
A statement of the board's approach to governance



Key background information about the organisation and its operating environment



Nature and scope of the activities to be undertaken
Ratio of consolidated shareholders' funds to total assets, and the definitions of those termsa
Accounting policies
Performance targets and other measures by which the performance of the group may be judged in relation to its objectives
An estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholdersa

Statement of the principles adopted in determining the annual dividend (if any) together with an estimate of the amount or proportion of annual tax-paid earnings that is intended to be distributed to the Crown


The kind of information to be provided to the shareholders/ shareholding Ministers by the organisation during the course of the next three financial years
(Shareholders)

(Ministers)

(Shareholders)

(Shareholders)

(Ministers)
Procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation
Any activities for which the board seeks compensation from any local authority, Harbour Board, or the Crown (whether or not the relevant entity has agreed to provide the compensation)b
(Local authority)

(Crown)


(Harbour Boardc)

(Crown)
The board's estimate of the commercial value of the Crown/shareholders' investment in the group and the manner in which, and the times at which, that value is to be reassesseda
(Shareholders)

(Crown)


(Shareholders)

(Crown)
The details of all transactions intended to be entered into between any member of the group and related parties as set out in the Energy Companies Act 1992



Other matters that are agreed by the shareholders/ shareholding Ministers and the boardb
(Shareholders)

(Ministers)

(Shareholders)

(Shareholders)

(Ministers)
Reporting against intended performance
Annual report should contain information that is necessary to enable an informed assessment of the operations of the parent entity and its subsidiaries, including a comparison of performance with the relevant statement of intent or statement of corporate intent
(Plus explanation of material variances)

Relevant legislation

Local Government Act 2002 Crown Research Institutes Act 1992 Energy Companies Act 1992 Port Companies Act 1988 State-Owned Enterprises Act 1986

Notes

* Council-controlled organisations and council-controlled trading organisations.

** State-owned enterprises.

a: We did not assess whether the council-controlled organisations in our report complied with these items.

b: We did not include these items in our assessment of content compliance for all applicable entity types because they are a conditional requirement.

c: Harbour Boards are still referred to in the Port Companies Act 1988. However, many of their functions have been transferred to local authorities. In practice, any compensation sought by a port company would be from relevant local authorities.

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