Parent municipalities that have shared control of a municipal entity—
| (a) | must enter into a mutual agreement determining and regulating— |
| (i) | their mutual relationships in relation to the municipal entity; |
| (ii) | the exercise of any shareholder, contractual or other rights and powers they may have in respect of the municipal entity; |
| (iv) | measures to ensure that annual performance objectives and indicators for the municipal entity are established by agreement with the municipal entity and included in the municipal entity's multi-year business plan in accordance with section 81(5)(d) of the Municipal Finance Management Act; |
| (v) | the monitoring and annual review, as part of the municipal entity's annual budget process as set out in section 87 of the Municipal Finance Management Act, of the performance of the municipal entity against the established performance objectives and indicators; |
| (vi) | the payment of any monies by the municipalities to the municipal entity or by the municipal entity to the municipalities; |
| (vii) | procedures for the resolution of disputes between those municipalities; |
| (viii) | procedures governing conditions for and consequences of withdrawal from the municipal entity by a municipality; |
| (ix) | procedures for terminating the appointment and utilisation of the municipal entity as a mechanism for the performance of a municipal function; |
| (x) | the disestablishment of the municipal entity, the division, transfer or liquidation of its assets and the determination of the responsibility for its liabilities; and |
| (xi) | any other matter that may be prescribed; and |
| (b) | may liquidate and disestablish the municipal entity— |
| (i) | following an annual performance review, if the performance of the municipal entity is unsatisfactory; |
| (ii) | if the municipality does not impose a financial recovery plan in terms of the Municipal Finance Management Act and the municipal entity continues to experience serious or persistent financial problems; or |
[Section 93C inserted by section 26 of Act No. 44 of 2003]
