Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)Chapter 8A : Municipal EntitiesPart 5 : Duties and responsibilities of parent municipalities93A. Duties of parent municipalities with respect to municipal entitites |
The parent municipality of a municipal entity—
| (a) | must exercise any shareholder, statutory, contractual or other rights and powers it may have in respect of the municipal entity to ensure that— |
| (i) | both the municipality and the municipal entity comply with this Act, the Municipal Finance Management Act and any other applicable legislation; and |
| (ii) | the municipal entity is managed responsibly and transparently, and meets its statutory, contractual and other obligations; |
| (b) | must allow the board of directors and chief executive officer of the municipal entity to fulfil their responsibilities; and |
| (c) | must establish and maintain channels of communication between the municipality and the municipal entity. |
[Section 93A inserted by section 26 of Act No. 44 of 2003]