42—Ability of council to establish a subsidiary
(1) A council may
establish a subsidiary—
(a) to
provide a specified service or services; or
(b) to
manage or administer property, facilities or activities on behalf of the
council; or
(c) to
perform a function of the council under this or another Act.
(2) A council cannot
establish a subsidiary under this section if the primary purpose of the
subsidiary would be to perform a regulatory activity of the council.
(3) The establishment
of a subsidiary under this section is subject to obtaining the approval of the
Minister to the conferral of corporate status under this Act.
(4) The establishment
of a subsidiary does not derogate from the power of the council to act in a
matter.
Note—
Schedule 2 contains other provisions relevant to a subsidiary established by a
council under this section.