| (1) | There are the following kinds of municipal entities: |
| (i) | established by one or more municipalities in terms of Part 2; or |
| (ii) | in which one or more municipalities have acquired or hold an interest in terms of Part 2; |
| (b) | a service utility established by a municipality in terms of Part 3; and |
| (2) | No municipality may establish, or participate in the establishment of, or acquire or hold an interest in, a corporate body, including a trust, except where such corporate body is— |
| (a) | a private company, service utility or multi-jurisdictional service utility referred to in subsection (1); or |
| (b) | a fund for the benefit of its employees in terms of a law regulating pensions or medical aid schemes. |
| (3) | Subsection (2) does not apply to the acquisition by a municipality for investment purposes of securities in a company listed on the Johannesburg Securities Exchange in accordance with the investment framework envisaged in section 13 of the Municipal Finance Management Act. |
[Section 86B inserted by section 18 of Act No. 44 of 2003]
