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Section 6: Local Governments as Legal Entities and Asset Protection

6.Local governments to be bodies corporate

(1)Every local government shall be a body corporate with perpetual succession and a common seal, and may sue or be sued in its corporate name and may, subject to the provisions of the Constitution, do, enjoy or suffer anything that may be done, enjoyed or suffered by a body corporate.

(2)Notwithstanding the provisions of subsection (1), no execution, attachment or process in such nature shall be issued out of any court for enforcing payment by a local government of any money or costs against its fixed assets and statutory transfers, provided the execution or attachment may be made against any other property after six months from the date of judgment, order or decree.

Plain English Summary

A local government is a legal person with perpetual existence. It can file lawsuits and be taken to court under its own name. The law protects its fix...

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