b'Legislation Charging PowersSection 93 LGA 2003 RequirementsDiscretionary services onlyRecipient must agree to being charged PermittedRecovery of costs ProhibitedProfit margin and charging for functions the authority has a duty to perform or where prohibitions or exclusions exist elsewhere in legislation UsersGeneral publicno limitation Wholly-owned localNo powers to set up companies under section 93 but combine with other authority vehiclespowers to establish general charging company for discretionary services for cost recoverymutual? Private sectorN/A investment LegislationLocal Government Act 2003, section 95Commercial Trading RequirementsBusiness Case necessary before commencement; Must trade only through a Company, ie Limited by shares, guarantee, or an Industrial and Provident Society; LA must recover costs of supporting trading company.PermittedActing for a commercial purpose, ie making profits (and losses)ProhibitedUse of section 95 powers if trading powers exist elsewhereLimited Liability Partnership Limited Partnership UsersPrivate sector; General PublicUnlimited (can include public bodies) Wholly-owned localSet up to trade with general public (not to supply services back to the authority vehiclesauthority)must be treated as arms length of the authority to recover support costs and majority of services supplied to others (not the parent body).Not Teckal exempt but exemption unnecessary. Private sectorIf a trading or investment partner is sought the LA needs to consider the investmentapplication of the procurement rules; 90'