RTA · Municipal Government Act
Part 3 — Special Municipal Powers and Limits on Municipal Powers Division 1 Expropriation
75.1 Division 9 Controlled Corporations Control of corporations
(a) "controlled corporation" means a corporation controlled by
a municipality or a group of municipalities and includes a
subsidiary, within the meaning of section 2(4) of the
Business Corporations Act, of such a corporation;
(b) "corporation" means a corp oration that operates for the
purpose of making a profit.
RSA 2000
Section 75.1 MUNICIPAL GOVERNMENT ACT Chapter M-26
72
(2) A municipality, by itself or with other municipalities, may
establish and control, or obtain control of, a corporation only if the
council of the municipality
(a) passes a resolution authorizing the municipality to control
the corporation by itself or with other municipalities, as the
case may be, and
(b) is satisfied that
(i) the controlled corporatio n will carry on business solely
for one or more of the purposes described in section 3,
(ii) the controlled corporatio n will provide a service or
benefit to residents of the municipality or group of
municipalities that controls it, and
(iii) the profits and dividends of the controlled corporation
will provide a direct benefit to the residents of the
municipality or group of municipalities that controls it.
(3) Before a council passes a resolution under subsection (2)(a),
the council must
(a) consider a business plan that addresses the matters referred
to in subsection (4), and
(b) hold a public hearing in accordance with the regulations.
(4) The matters to be addressed in a business plan referred to in
subsection (3)(a) include
(a) the costs related to estab lishing and controlling or obtaining
control of the corporation, as the case may be,
(b) the value of any assets of the municipality or group of
municipalities that are to be transferred to the corporation,
(c) a cash flow projection for the next 3 years of the
corporation's operation,
(d) the corporation's financial statements and operating and
capital budgets for the most recent 5 years, or if the
corporation has existed for less than 5 years, the financial
statements and operating and capital budgets for each year it
has existed, and
(e) any other information pr escribed by the regulations.
2016 c24 s13
RSA 2000