sec.40Conducting beneficial enterprises

### sec.40 Conducting beneficial enterprises A local government may conduct a beneficial enterprise. To conduct the beneficial enterprise, the local government— may participate with an association, other than by being an unlimited partner of a partnership; and must not, either directly or by participating with an association, participate with an unlimited corporation; and must not enter into an agreement that does not limit the liability of the local government, as between the parties to the agreement, to the amount committed by the local government under the agreement. Under the Statutory Bodies Financial Arrangements Act 1982 , a local government may need the Treasurer’s approval before entering into particular financial arrangements. An association is— a partnership; or a corporation limited by shares but not listed on a stock exchange; or a corporation limited by guarantee but not listed on a stock exchange; or another association of persons that is not a corporation. An unlimited corporation means a corporation whose members have no limit placed on their liability. A local government participates with an association or unlimited corporation if the local government— forms, or takes part in forming, an association or unlimited corporation; or becomes a member of an association or unlimited corporation; or takes part in the management of an association or unlimited corporation; or acquires or disposes of shares, debentures or securities of an association or unlimited corporation. s 40 amd 2010 No. 23 s 281 sub 2012 No. 33 s 90 (sec.40-ssec.1) A local government may conduct a beneficial enterprise. (sec.40-ssec.2) To conduct the beneficial enterprise, the local government— may participate with an association, other than by being an unlimited partner of a partnership; and must not, either directly or by participating with an association, participate with an unlimited corporation; and must not enter into an agreement that does not limit the liability of the local government, as between the parties to the agreement, to the amount committed by the local government under the agreement. Under the Statutory Bodies Financial Arrangements Act 1982 , a local government may need the Treasurer’s approval before entering into particular financial arrangements. (sec.40-ssec.3) An association is— a partnership; or a corporation limited by shares but not listed on a stock exchange; or a corporation limited by guarantee but not listed on a stock exchange; or another association of persons that is not a corporation. (sec.40-ssec.4) An unlimited corporation means a corporation whose members have no limit placed on their liability. (sec.40-ssec.5) A local government participates with an association or unlimited corporation if the local government— forms, or takes part in forming, an association or unlimited corporation; or becomes a member of an association or unlimited corporation; or takes part in the management of an association or unlimited corporation; or acquires or disposes of shares, debentures or securities of an association or unlimited corporation. - (a) may participate with an association, other than by being an unlimited partner of a partnership; and - (b) must not, either directly or by participating with an association, participate with an unlimited corporation; and - (c) must not enter into an agreement that does not limit the liability of the local government, as between the parties to the agreement, to the amount committed by the local government under the agreement. - (a) a partnership; or - (b) a corporation limited by shares but not listed on a stock exchange; or - (c) a corporation limited by guarantee but not listed on a stock exchange; or - (d) another association of persons that is not a corporation. - (a) forms, or takes part in forming, an association or unlimited corporation; or - (b) becomes a member of an association or unlimited corporation; or - (c) takes part in the management of an association or unlimited corporation; or - (d) acquires or disposes of shares, debentures or securities of an association or unlimited corporation.