An agreement establishing a multi-jurisdictional service utility must describe the rights, obligations and responsibilities of the parent municipalities, and must—
| (a) | determine the boundaries of the area for which the multi-jurisdictional service utility is established; |
| (b) | identify the municipal service or other function to be provided in terms of the agreement; |
| (d) | determine budgetary and funding arrangements for implementation of the agreement; |
| (ii) | the appointment of directors by the respective parent municipalities, the filling of vacancies and the replacement and recall of directors; |
| (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; and |
| (viii) | any other matter relating to the proper functioning of the board of directors; |
| (i) | the acquisition of infrastructure, goods, services, supplies or equipment by the multi-jurisdictional service utility, or the transfer of infrastructure, goods, services, supplies or equipment to the multi- jurisdictional service utility; |
| (ii) | the appointment of staff by the multi-jurisdictional service utility, or the transfer or secondment of staff to the multi-jurisdictional service utility in accordance with applicable labour legislation; and |
| (iii) | the terms and conditions on which any acquisition, transfer, appointment or secondment is made; |
| (g) | determine the conditions for, and consequences of, the withdrawal from the agreement of a parent municipality; |
| (h) | determine the conditions for, and consequences of, the termination of the agreement, including— |
| (i) | the method and schedule for winding-up the operations of the multi-jurisdictional service utility; |
| (ii) | the distribution of the proceeds; and |
| (iii) | the allocation among the parent municipalities of any assets and liabilities; and |
| (i) | the governing of the multi-jurisdictional service utility; |
| (ii) | compulsory written reports regarding the activities and performance of the multi-jurisdictional service utility to a parent municipality; |
| (iii) | information that may be requested from the multi-jurisdictional service utility by a parent municipality; |
| (iv) | the amendment of the agreement; and |
| (v) | any other matter necessary for the proper functioning of the multi-jurisdictional service utility. |
[Section 89 substituted by section 21 of Act No. 44 of 2003]
