South Australian Current Acts

LOCAL GOVERNMENT ACT 1999 - SECT 139

139—Investment powers

        (1)         A council may invest money under its control.

        (2)         A council must, in exercising its power of investment—

            (a)         exercise the care, diligence and skill that a prudent person of business would exercise in managing the affairs of other persons; and

            (b)         avoid investments that are speculative or hazardous in nature.

        (3)         Without limiting the matters that a council may take into account when exercising its power of investment, a council must, so far as may be appropriate in the circumstances, have regard to—

            (a)         the purposes of the investment;

            (b)         the desirability of diversifying council investments;

            (c)         the nature of and risk associated with existing council investments;

            (d)         the desirability of maintaining the real value of the capital and income of the investment;

            (e)         the risk of capital or income loss or depreciation;

            (f)         the potential for capital appreciation;

            (g)         the likely income return and the timing of income return;

            (h)         the length of the term of a proposed investment;

                  (i)         the period for which the investment is likely to be required;

            (j)         the liquidity and marketability of a proposed investment during, and on the determination of, the term of the investment;

            (k)         the aggregate value of the assets of the council;

            (l)         the likelihood of inflation affecting the value of a proposed investment;

            (m)         the costs of making a proposed investment;

            (n)         the results of any review of existing council investments.

        (4)         Without limiting the matters that a council may take into account when exercising its power of investment, but subject to the operation of subsection (3), a council may, so far as may be appropriate in the circumstances, have regard to—

            (a)         the anticipated community benefit from an investment;

            (b)         the desirability of attracting additional resources into its local community.

        (5)         A council may obtain and consider independent and impartial advice about the investment of funds or the management of its investments from a person whom the council reasonably believes to be competent to give the advice.