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General policy power of direction in relation to transferred company
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27. (1) A local authority chief executive may, after consultation with a transferred company, give a direction in writing to the transferred company, requiring it to comply with policy decisions of a general kind in relation to—
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(a) such policies of the local authority concerned as are specified in the direction, or
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(b) matters affecting the functions of the transferred company.
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(2) A transferred company shall comply with a direction given to it under this section.
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(3) A local authority chief executive may stipulate, in consultation with a transferred company, financial or other targets to be achieved by a transferred company. In stipulating such targets the local authority chief executive shall have due regard to any direction it has given to the transferred company concerned under subsection (1).
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(4) Subsections (1) and (3) shall not be construed as enabling a local authority or a local authority chief executive to exercise any power or control in relation to the performance in particular circumstances by a transferred company of a function conferred on it by or under this Act or the Act of 1996.
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