1 Mar 2012

Ryall concedes SOE loophole under Companies Act

8:54 pm on 1 March 2012

The State-owned Enterprises Minister has conceded that under the Companies Act up to 50% of partially privatised energy companies could be sold without the approval of shareholders.

But Tony Ryall says no special exemption is needed to ensure, for example, that individual dams owned by the power generators are not sold under the Government's mixed ownership model.

Green Party co-leader Russel Norman has suggested individual dams could be sold once shareholdings in the three power generators - Mighty River Power, Genesis Energy and Meridian Energy - are held by private investors.

During Parliament's Question Time, Dr Norman asked Mr Ryall whether any clause would be included in legislation paving the way for the sales to stop that happening.

Mr Ryall says that is not necessary because the Government remains the majority shareholder.