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(1)A relevant authority may not, in exercise of any of its powers, form a company for the purpose of providing a local service.
(2)Subsection (1) applies whether the relevant authority is acting alone or with any other person.
(3)In this section—
“company” has the same meaning as in the Companies Acts (see sections 1(1) and 2(1) of the Companies Act 2006);
“form a company” is to be construed in accordance with section 7 of the Companies Act 2006;
“local service” has the same meaning as in the Transport Act 1985 (see section 2 of that Act);
“Passenger Transport Executive”, in relation to an integrated transport area in England or a combined authority area, means the body which is the Executive in relation to that area for the purposes of Part 2 of the Transport Act 1968;
“relevant authority” means—
a county council in England;
a district council in England;
a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;
an Integrated Transport Authority for an integrated transport area in England;
a Passenger Transport Executive for—
an integrated transport area in England, or
a combined authority area.
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