| (2) | A by-law establishing a service utility must— |
| (a) | state the purpose for which the service utility is established; |
| (b) | confer the powers and impose the duties on the service utility which are necessary for the attainment of such purpose; |
| (ii) | the number of directors to be appointed; |
| (iii) | the appointment of directors, the filling of vacancies and the replacement and recall of directors by the parent municipality; |
| (iv) | the terms and conditions of appointment of directors; |
| (v) | the appointment of a chairperson; |
| (vi) | the operating procedures of the board of directors; |
| (vii) | the delegation of powers and duties to the board of directors; |
| (viii) | any other matter necessary for the proper functioning of the board of directors; |
| (ix) | the acquisition of infrastructure, goods, services, supplies or equipment by the service utility, or the transfer of infrastructure, goods, services, supplies or equipment to the service utility; |
| (x) | the appointment of staff by the service utility, or the transfer or secondment of staff to the service utility in accordance with applicable labour legislation; |
| (xi) | the terms and conditions on which any acquisition, transfer, appointment or secondment is made; |
| (xii) | the governance of the service utility; and |
| (xiii) | any other matter necessary for the proper functioning of the service utility; and |
| (d) | determine budgetary and funding arrangements for implementation of the by-law. |
[Section 86H(3) inserted by section 16 of Act No. 19 of 2008]
| (4) | No by-law may confer on a service utility any functions or powers falling outside the competence of the parent municipality contemplated by section 8. |
[Section 86H inserted by section 18 of Act No. 44 of 2003]
