"Our capital markets are too thin. These listings are badly needed otherwise they will become irrelevant judging from what is happening with takeovers and delistings."
Mr McLauchlan said the listing of assets like Mighty River Power and Genesis would also provide much better transparency for shareholders.
The new boards will be subject to rules of governance, disclosure and security.
Better returns, equal to other listed energy companies, would need to be generated to attract shareholders.
In the past, the appointments to the SOE boards had been seen as a political process with successive governments repaying favours of support with board appointments.
SOE boards also have a higher percentage of women directors than most NZX-listed companies, something that should continue. However, Mr McLauchlan said while the Government would still hold 51% of the assets the new directors would have to attend a public shareholders' meeting.
They would also have to face shareholder scrutiny and stand for election at the meetings, although the Government could still influence the process through its 51% holding.
There was a large enough pool of directors in New Zealand to take on any extra roles created by the sell-down, he said.
The listings would also create a career path for younger people interested in becoming professional directors.
