PART 1Local Government

CHAPTER 1General powers of authorities

4Limits on doing things for commercial purpose in exercise of general power

(1)

The general power confers power on a local authority to do things for a commercial purpose only if they are things which the authority may, in exercise of the general power, do otherwise than for a commercial purpose.

(2)

Where, in exercise of the general power, a local authority does things for a commercial purpose, the authority must do them through a company.

(3)

A local authority may not, in exercise of the general power, do things for a commercial purpose in relation to a person if a statutory provision requires the authority to do those things in relation to the person.

(4)

In this section “company” means—

(a)

a company within the meaning given by section 1(1) of the Companies Act 2006, or

(b)

a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969.