PART 2GENERAL POWER OF COMPETENCE

CHAPTER 1THE GENERAL POWER

27Limits on doing things for commercial purpose in exercise of general power

(1)

The general power confers power on a qualifying local authority to do things for a commercial purpose only if they are things that 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 qualifying local authority does things for a commercial purpose, the authority must do them through a company.

(3)

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

(4)

In this section, “company” means—

(a)

a company within the meaning of section 1(1) of the Companies Act 2006 (c. 46), or

(b)

a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 (c. 14) or the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24 (NI)).

(5)

A qualifying local authority must have regard to any guidance issued by the Welsh Ministers about doing things, in the exercise of the general power, for a commercial purpose.