Powers
The lack of formal legislation establishing Cabinet leaves the powers of its members only loosely defined. However, convention regarding the Cabinet's authority has considerable force, and generally proves strong enough to bind its participants. Theoretically, each minister operates independently, having received a ministerial warrant over a certain field from the Crown (represented by the Governor-General). But the Governor-General can dismiss a minister at any time, conventionally on the advice of the Prime Minister, so ministers are largely obliged to work within a certain framework.
Cabinet itself acts as the accepted forum for establishing this framework. Ministers will jointly discuss the policy which the government as a whole will pursue, and ministers who do not exercise their respective powers in a manner compatible with Cabinet's decision risk losing those powers. This has become known as the doctrine of collective responsibility. Problems arise when the Prime Minister breaches collective responsibility. Since ministerial appointments and dismissals are in practice in the hands of the Prime Minister, the Cabinet can not directly initiate any action against a Prime Minister who openly disagrees with his government's policy. On the other hand, a Prime Minister who tries to act against concerted opposition from his Cabinet risks losing the confidence of his party colleagues. An example is former Prime Minister David Lange, who publicly spoke against a tax reform package which was sponsored by then-Finance Minister Roger Douglas and supported by Cabinet. Lange dismissed Douglas, but when the Cabinet supported Douglas against Lange, Lange himself resigned as Prime Minister.
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