South Australian Current Acts

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LOCAL GOVERNMENT ACT 1999 - SECT 57

57—Restriction on activities during the relevant period

        (1)         In this section—

"asset" means anything that must be treated as an asset for the purposes of the financial statements of a council;

"lease" includes an agreement for lease, but does not include a lease entered into as a result of the exercise of a right or option to renew a lease entered into before the commencement of the relevant period;

"relevant period" in relation to a council means a period commencing on the date of a declaration under this section that relates to the council and ending on the day on which general elections for the council held pursuant to that section conclude.

        (2)         This section applies to a council that is the subject of a declaration under section 56.

        (3)         Subject to this section, if during a relevant period the council to which the period relates—

            (a)         enters into a contract for the appointment of a chief executive officer; or

            (b)         enters into a contract—

                  (i)         the terms of which require (either unconditionally or subject to conditions) the council to make a payment exceeding $100 000, or payments exceeding $100 000 in total; or

                  (ii)         the terms of which entitle the council to receive a payment exceeding $100 000, or payments exceeding $100 000, on account of the disposal by the council of an asset of the council; or

            (c)         enters into a lease under which the rent payable by the lessee in any period exceeds $100 000,

without the approval of the Minister, the contract or lease is liable to be voided by the Minister.

        (4)         However, subsection (3) does not apply to—

            (a)         a contract or lease entered into by the council to give effect to any expenditure or revenue measure contained in a budget adopted by the council before the commencement of the relevant period; or

            (b)         a contract or lease of a kind excluded from the operation of that subsection by the Minister (on conditions, if any, determined by the Minister).

        (5)         An approval granted by the Minister for the purposes of this section has no effect unless the council had, before submitting the relevant contract or lease to the Minister for approval, resolved that it would, subject to the approval of the Minister, enter into the contract or lease.

        (6)         If—

            (a)         the Minister voids a contract or lease under this section; and

            (b)         the Minister or the council incurs a liability by reason of or in relation to the contract or lease,

the Minister or the council (as the case may be) may recover the whole of the amount of the liability as a debt from the persons who were members of the council at the time that the contract was made or lease was entered into or made, or from any of them, or from any one of them.



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