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Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 8 : Municipal Services

Part 2 : Provision of services

82. Municipal entities

 

(1) If a municipality intends to provide a municipal service in the municipality through a service delivery agreement with a municipal entity, it may—
(a) alone or together with another municipality, establish in terms of applicable national or provincial legislation a company, co-operative, trust, fund or other corporate entity to provide that municipal service as a municipal entity under the ownership control of that municipality or those municipalities;
(b) alone or together with another municipality, acquire ownership control in any existing company, co-operative, trust, fund or other corporate entity which as its main business intends to provide that municipal service in terms of a service delivery agreement with the municipality; or
(c) establish in terms of subsection (2) a service utility to provide that municipal service.

 

(2)
(a) A municipality establishes a service utility in terms of subsection (1)(c) by passing a by-law establishing and regulating the functioning and control of the service utility;
(b) A service utility is a separate juristic person;
(c) The municipality which established the service utility must exercise ownership control over it in terms of its by-laws.