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

Chapter 8A : Municipal Entities

Part 3 : Service utilities

86I. Legal status of service utilities

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(1) A service utility is a juristic person and a municipal entity under the sole control of the municipality which established it.

 

(2) A service utility—
(a) must restrict its activities to the purpose for which it was established; and
(b) has no competence to perform any activity which falls outside its functions or powers in terms of a by-law of the municipality.

 

[Section 86I inserted by section 18 of Act No. 44 of 2003]