Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)Chapter 8A : Municipal EntitiesPart 2 : Private companies86D. Legal status of private companies established by municipalities or in which municipalities hold interests |
| (1) | A private company referred to in section 86C(1)— |
| (a) | is a municipal entity if a municipality, or two or more municipalities collectively, have effective control of the private company; or |
| (b) | is a public entity to which the Public Finance Management Act, 1999 (Act No. 1 of 1999), applies if ownership control in the company, within the meaning of that Act, is held by a national or provincial organ of state. |
| (2) | A private company which is a municipal entity— |
| (a) | must restrict its activities to the purpose for which it is used by its parent municipality in terms of section 86E(1)(a); and |
| (b) | has no competence to perform any activity which falls outside the functions and powers of its parent municipality contemplated by section 8. |
[Section 86D inserted by section 18 of Act No. 44 of 2003]