The heads of boards of all state-owned enterprises have been summoned to the Beehive to discuss concerns about their performance and the implications for their futures.
A leaked letter, written by State-Owned Enterprises Minister Simon Power, says the Government believes urgent change is needed because of "declining" financial performances and the economic downturn.
The letter, made public on Friday, calls the board heads to a meeting in early April.
In the letter, Mr Power says the Government's highest priority is to improve the boards' commercial expertise - the same reason given for sacking Accident Compensation Corporation board chairman Ross Wilson earlier in the week.
Mr Power has told the boards that financial targets will be set, and that they will be held accountable for meeting them.
The letter says there will be a round of board appointments in April and he does not rule out changes.
Mr Power says $24 billion of taxpayer money is invested in state-owned enterprises and the Government believes there is room for improvement.
The letter is seen as giving clear notice to board members that their positions are on the line.
Labour's state-owned enterprises spokesperson, Clayton Cosgrove, describes the letter as extraordinary, saying that instead of simply inviting board heads to a meeting, it suggests they could be sacked.
Mr Cosgrove says the Government maintains it wants to save jobs but at the same time is signalling it wants to take more money out of state-owned enterprises.
Mr Power denies the Government is effectively putting boards on notice.
"Any shareholder in any commercial enterprise that had the shareholding in dollar terms that we're talking about on behalf of the New Zealand taxpayer ... would have a discussion with the chairpeople of boards of those entities, and that's what we intend to do," he says.