Acts Online
GT Shield

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.