Ports of Auckland

Under this Act the principal objective of every port company is to operate as a successful business. Although not defined by the Act, POAL understands this to mean it must operate as profitably and efficiently as comparable businesses that are privately owned, following generally accepted commercial practices and disciplines. Port Companies must prepare and publish an annual Statement of Corporate Intent (SCI) declaring proposed activities and performance targets relating to financial, environmental and social performance measures. POAL's shareholder, ACIL, has the power to require POAL to modify the SCI by including or omitting any provision, after having regard to POAL's obligation to operate as a successful business. Once the SCI is adopted by ACIL, it is published on POAL's website and all decisions must be made in accordance with it. The purpose of POAL's SCI is to: state publicly the activities and intentions, and the objectives to which those activities will contribute; and provide a basis for the accountability of the Board to ACIL for POAL's performance. The SCI defines the nature and scope of services POAL provides, and the key performance measures it is targeting. It includes the dividend policy, and details when POAL are required to consult with ACIL for material transactions. POAL provides ACIL with the following reports: Annual SCI draft for discussion and final version Strategic Business Plan Half Yearly Report including performance commentary, financial statements and performance against SCI targets Annual Report including performance commentary, financial statements, performance against SCI targets Quarterly Reports including financial updates and performance against SCI targets. In addition POAL's Board meets with ACIL's Board twice each year to discuss strategic issues and business performance. Principle 9 - Stakeholder interests