Ministry of Economic Development has published the first amendment to the regulation on forming local authority companies, which allows local councils to establish companies to carry out government-approved business activities.
The new regulation states that local councils can establish wholly or partly owned companies to carry out business activities in their administrative region. The regulation allows local councils to be involved in the operation of airports, hospitals, clinics, and the development of boatyards.
The government will approve the establishment of a company owned by a local council after evaluating the current level of business activity in the region and its impact on private businesses and residents. The Registrar of Companies will set the requirements for the company director, on the recommendations of the Local Government Authority (LGA).
Leave a Reply