Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 8A : Municipal Entities

Part 5 : Duties and responsibilities of parent municipalities

93D. Municipal representatives

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(1) The council of a parent municipality must designate a councillor or an official of the parent municipality, or both, as the representative or representatives of the parent municipality—
(a)to represent the parent municipality as a non-participating observer at meetings of the board of directors of the municipal entity concerned; and
(b) to attend shareholder meetings and to exercise the parent municipality's rights and responsibilities as a shareholder, together with such other councillors or officials that the council may designate as representatives.

 

(2)
(a) The official lines of communications between a municipal entity and the parent municipality exist between the chairperson of the board of directors of the municipal entity and the mayor or executive mayor, as the case may be, of the parent municipality.
(b) The mayor or executive mayor, as the case may be, of a parent municipality may at any time call or convene any meeting of shareholders or other general meeting comprising the board of directors of the municipal entity concerned and the representatives of the parent municipality, in order for the board of directors to give account for actions taken by it.
(c) The council of a parent municipality may determine the reporting responsibilities of a municipal representative referred to in subsection (1)(a)or(b).

 

(3)
(a) A municipal representative referred to in subsection (1)(b), must represent the parent municipality faithfully at shareholder meetings, without consideration of personal interest or gain, and must keep the council informed of—
(i) how voting rights were exercised; and
(ii) all relevant actions taken on behalf of the municipality by the representative.
(b) A municipal representative referred to in subsection (1)(a) or (b)—
(i) must act in accordance with the instructions of the council; and
(ii) may be reimbursed for expenses in connection with his or her duties as a municipal representative, but may not receive any additional compensation or salary for such duties.

 

[Section 93D inserted by section 26 of Act No. 44 of 2003]