Creation of corporations
2. (1) A municipality may incorporate one or more corporations under the Business Corporations Act or under Part III of the Corporations Act for one or more of the following purposes: 1. To operate and maintain a public transportation system. 2. To operate and maintain a waste management service for the collection, transfer, storage, disposal or recycling of residential waste. 3. To promote the municipality for any purpose through the collection and dissemination of information and the preparation of economic development strategic plans to advance the municipality’s economic goals and objectives. 4. To provide municipal administrative services to municipalities, local boards, public hospitals, universities, colleges and school boards, excluding enforcement of any Act, regulation or by-law. 5. To be a party to an agreement made under section 110 of the Act and under the agreement operate and maintain one or more municipal capital facilities of a municipality that is also party to the agreement. 6. To construct, operate, maintain and own, including ownership of the land related thereto, one or more of the following facilities: i. A nursing home under the Nursing Homes Act or an approved charitable home for the aged under the Charitable Institutions Act. ii. Recreation, tourism and cultural facilities, except public libraries. iii. General parking facilities. iv. Public transportation systems. v. Waste management facilities for the collection, transfer, storage, disposal and recycling of residential waste. O. Reg. 168/03, s. 2 (1). (2) Paragraphs 1 to 5 of subsection (1) do not permit the corporation incorporated for or carrying on a purpose described in those paragraphs to own the land related to the facility, system or service described in those paragraphs. O. Reg. 168/03, s. 2 (2). (3) The purposes described in paragraph 6 of subsection (1) are limited to the construction, operation, maintenance and ownership of facilities that are new when the corporation first carries on its business with respect to them. O. Reg. 168/03, s. 2 (3). (4) A municipality may incorporate a corporation alone or together with one or more other municipalities. O. Reg. 168/03, s. 2 (4). (5) A corporation may only operate, (a) within the boundaries of the incorporating municipality or municipalities if it or they are single-tier municipalities; (b) within the boundaries of a lower-tier municipality if the lower-tier municipality is an incorporating municipality or it agrees to allow the corporation to operate in the lower-tier municipality; (c) within the boundaries of an upper-tier municipality if the upper-tier municipality is an incorporating municipality or it agrees to allow the corporation to operate in the upper-tier municipality; or (d) within any municipality with its agreement. O. Reg. 168/03, s. 2 (5). (6) The operations of a corporation under clause (5) (b) do not require the agreement of the upper-tier municipality and the operations of a corporation under clause (5) (c) do not require the agreement of any lower-tier municipality. O. Reg. 168/03, s. 2 (6). (7) The articles of incorporation or letters patent, including any subsequent articles or supplementary letters patent, shall restrict the powers or limit the objects of a corporation to carrying on one or more of the purposes set out in subsection (1) and subsection 3 (1). O. Reg. 168/03, s. 2 (7). (8) A municipality shall ensure that the articles of incorporation of a corporation, including any subsequent articles, or the letters patent of a corporation, including any supplementary letters patent, meet the requirements of this section and section 3. O. Reg. 168/03, s. 2 (8). (9) Letters patent issued under Part III of the Corporations Act in respect of a corporation incorporated under paragraph 3 of subsection (1) shall restrict membership in the corporation to the incorporating municipality or to another municipality that has agreed to allow the corporation to carry on business in that municipality. O. Reg. 168/03, s. 2 (9). (10) Despite subsection (1), a corporation incorporated under paragraph 3 of subsection (1) or carrying on business that includes the purpose identified by that paragraph shall only be incorporated under Part III of the Corporations Act. O. Reg. 168/03, s. 2 (10).