Article 2 Power to trade in function-related activities

(1)

Subject to paragraphs (2) and (3), a best value authority is authorised to do for a commercial purpose anything which it is authorised to do for the purpose of carrying on any of its ordinary functions^f1.

(2)

Before exercising the power conferred by paragraph (1), the authority shall—

(a)

prepare a business case in support of the proposed exercise of that power; and

(b)

approve that business case.

(3)

A best value authority shall recover the costs of any accommodation, goods, services, staff or any other thing that it supplies to a company^f2 in pursuance of any agreement or arrangement to facilitate the exercise of the power conferred by paragraph (1).

(4)

In this article, “business case” means a comprehensive statement as to—

(a)

the objectives of the business,

(b)

the investment and other resources required to achieve those objectives,

(c)

any risks the business might face and how significant these risks are, and

(d)

the expected financial results of the business, together with any other relevant outcomes that the business is expected to achieve.

Annotations

Footnotes

f1: See section 95(7) of the Act for the meaning of “ordinary functions”.
f2: See section 95(4) of the Act for the meaning of “company”.