What is a public entity

A Victorian public sector entity (public entity) is a body, whether corporate or unincorporated (s. 5 Public Administration Act 2004 (PDF 568KB))

• that is established
  • by or under an Act or the Corporations Act (Commonwealth) or
  • by the Governor in Council or
  • by a Minister and
• in the case of a body corporate, the right to appoint at least one half of the directors of which is vested in the Governor in Council or a Minister, or could have been so vested in the case of a body corporate established by the Governor in Council or a Minister under the power given by the Act under which the Order is made
• that has a public function to exercise on behalf of the State or is wholly owned by the State

About this guide

This guide has been developed for members of public sector entity Boards. It will assist potential, new and existing Board members of Victorian public entities to understand concepts of good governance and the critical policies and procedures that drive their day-to-day work. It is designed to provide practical guidance to Boards of public entities.

Who should use this guide?

The guide is for use by Board members of public entities in Victoria. Public entities in Victoria vary. Some will be multi-million dollar service public entities with staff and high level management teams governed by a Board. Others will be small bodies with no responsibility for budgets. Some public entities will report to Ministers who will be required to report to Parliament. Others will report only to Ministers whether formally or less formally. Many will be required to have their financial statements audited by the Auditor-General, and others will not.

It is also important that Chief Executive Officers (CEOs) of public entities and their executive management teams use the Guide as it clearly differentiates the role of the Chair and Board from that of the CEO and executives and highlights where the partnership between governance and management can be strengthened.

The fundamentals of good governance are common to all public entities, especially in relation to fostering good corporate governance culture.

The terminology used within this Guide may be adapted to suit the circumstances or structure of the particular entity. For example, terms such as ‘Boards’, ‘directors’, etc. should be taken to mean the equivalent term in the user entity. All specialist words and acronyms are defined in the Dictionary of Common Terms.

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