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Additional resources for Corporate Governance of State-Owned Enterprises: A Survey Of OECD Countries
2. Debate on the sole/dual model in Australia Sole ownership Dual ownership Advantages Clarity with respect to the government’s shareholder objectives and expectations. Clearly separated accountability. Streamlining. Focus on efficiency and rate of return. Enhanced balance between the government’s regulatory, industrial policy and financial perspectives. Disadvantages Too much focus on financial issues. Conflict of interest : • Between CSO (Community Service Obligations) and interests as shareholder.
Recommendation 3: That the Minister for Finance and Administration amend the public law to include a section that all Ministerial directions to GBE boards should be in writing and tabled in both Houses of Parliament within 15 sitting days. Recommendation 4: That the Minister for Finance and Administration amend the public law to include a requirement that GBE boards ensure that there are appropriate and effective induction, education and training programmes offered to new and existing board directors.
This dual model differs from the de-centralised model where different sector ministries are responsible for their respective SOEs, with one ministry being “more equal than others” and ensuring co-ordination and overall policy, such as in Germany and Finland. In the dual model the sharing of responsibility truly concerns the ownership function. There may be a dual responsibility about certain specific aspects, for example, where both ministries have the right to nominate representatives for the board of directors.