Explanatory note

Once a mixed ownership model company has had shares sold to private investors there is a risk they will put pressure on the company to asset strip in order to make a return on their investment. With the organisations removed from the ambit of many of the Acts ensuring the responsible behaviour of State-owned enterprises it is even more important to give the public warning of what the companies are doing.

This amendment provides that companies cannot simply sell off individual assets like dams and wind farms to private companies in order to asset strip or defeat the purpose of the 51% ownership clause. Instead, a mixed ownership model company would be required to publicly notify that they intend to sell an asset and then must wait for the sale to be approved by the Governor-General by Order in Council.