82. Municipal entities

  1. If a municipality intends to provide a municipal service in the municipality through a service delivery agreement with a municipal entity, it may-
    1. alone or together with another municipality, establish in terms of applicable national or provincial legislation a company. co-operative, trust, fund or other corporate entity to provide that municipal service as a municipal entity under the ownership control of that municipality or those municipalities;
    2. alone or together with another municipality, acquire ownership control in any existing company, co-operative, trust, fund or other corporate entity which as its main business intends to provide that municipal service in terms of a service delivery agreement with the municipality; or
    3. establish in terms of subsection (2) a service utility to provide that municipal service.
    1. A municipality establishes a service utility in terms of subsection (1)(c) by passing a by-law establishing and regulating the functioning and control of the service utility;
    2. A service utility is a separate juristic person;
    3. The municipality which established the service utility must exercise ownership control over it in terms of its by-laws.
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