Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 2 : Legal Nature and Rights and Duties of Municipalities

2. Legal nature

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A municipality

(a) is an organ of state within the local sphere of government exercising legislative and executive authority within an area determined in terms of the Local Government: Municipal Demarcation Act, 1998;
(b) consists of—
(i) the political structures and administration of the municipality; and
(ii) the community of the municipality;
(c) functions in its area in accordance with the political, statutory and other relationships between its political structures, political office bearers and administration and its community; and
(d) has a separate legal personality which excludes liability on the part of its community for the actions of the municipality.