How long does a subsidiary exist?
Once a subsidiary is established, it will continue to operate as a separate legal entity until:
- it is wound up in accordance with the charter or
- the Minister revokes the subsidiary's approval.
actual lifespan of a subsidiary will be specified in the subsidiary's
charter, which in turn will depend on the role that the subsidiary is
intended to perform.
For example, the
charter may provide that the subsidiary exists for as long as the
member councils wish it to. Alternatively, the charter may specify that
the subsidiary is to be wound up after a specified amount of time, or
after achieving a specific objective.
Making proposals to the Minister
formation of a subsidiary is a complex matter, since each subsidiary
will be formed in unique circumstances and every charter will be
reason, it is advisable to contact the department prior to the
preparation of any business plans or charter documents, so that
appropriate support and advice can be provided at every step of the
approval of a proposal is never guaranteed, the department is committed
to ensuring that viable proposals are given a chance to deliver positive
outcomes for local communities.