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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 7 : Responsibilities of Mayors

56. Exercise of rights and powers over municipal entities


(1) The mayor of a municipality which has sole or shared control over a municipal entity, must guide the municipality in exercising its rights and powers over the municipal entity in a way—
(a) that would reasonably ensure that the municipal entity complies with this Act at all times remains accountable to the municipality; and
(b) that would not impede the entity from performing its operational responsibilities.


(2) In guiding the municipality in the exercise of its rights and powers over a municipal entity in accordance with subsection (1), the mayor may monitor the operational functions of the entity, but may not interfere in the performance of those functions.