Participation report; provided by the local authority

Under the provisions of Article 94(3) of the Local Government Act (GO), every local authority must draw up an annual report on its shareholdings in companies governed by private law where the shareholding is 5 per cent or more. The same applies to every district in accordance with Article 82(3) of the District Code (LKrO) and to every administrative district in accordance with Article 80(3) of the Administrative District Code (BezO).

The reporting should focus on information regarding the fulfilment of the public purpose in accordance with Article 87 of the Rules of Procedure (or Article 75 of the Local Government Act or Article 73 of the Municipal Organisation Act), the shareholding structure, the composition of the company’s governing bodies, the remuneration of the individual members of the executive body in accordance with Article 94(1), first sentence, No. 4 of the Municipal Organisation Act (or Article 82(1), first sentence, No. 4 of the County Ordinance or Article 80(1), first sentence, No. 4 of the District Ordinance), the profit and loss position and borrowing.

The participation report drawn up by the local authority, the district or the regional authority is not intended to serve a supervisory function, but rather to ensure that the fulfilment of local authority responsibilities remains transparent to the local authority and its citizens, despite the outsourcing of certain functions under private law.