Section 26
Paid-up capital of statutory water company
—
The initial authorized and paid-up capital of a statutory water company shall be fixed by the statutory water company with the consent of the Minister.
(2)
The shares in a statutory water company shall be held by—
(a)
the State Financial Secretary Incorporation (in this section referred to as “the Corporation”) for and on behalf of the
Government; and/or
(b)
such other parties as may be approved by the Minister.
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(3)
In the event that the assets of a water supply authority are to be transferred to a statutory water company, the statutory water company shall issue to the Corporation shares at its nominal value which will be equal to the value of such assets transferred to the statutory water company.
(4)
The management and administration of a statutory water company shall be governed by an Agreement between the
Government and the statutory water company. Such an Agreement shall be concluded prior to the making of the Statutory Order and may not be varied, amended or modified without the express approval of the Minister.
(5)
Without prejudice to the generality of subsection (4), the
Agreement between the Government and a statutory water company shall incorporate the following specific terms and conditions:
(a)
the appointment by the Government, through the
Corporation, of a majority of the members of the Board of
Directors of a statutory water company during a period of at least five (5) years from the date of the making of the Statutory Order;
(b)
certain decisions of the statutory water company, including the appointment of its Chief Executive Officer, shall not be made by the statutory water company without the prior approval of the Minister;
(c)
the transfer of staff of the water supply authority to the statutory water company upon such terms and conditions not less favourable than those enjoyed by such staff in the water supply authority, prior to their transfer.
Statutory water company to comply with directions of the State