SECTION 52

(1) Local authorities may, by resolution of their deliberative organs, either acquire shares or bonds of companies responsible for operating local services, or receive as a royalty contribution or start-up shares issued by the said companies, upon the prior approval of the State supervisory authority, following the maximum participation level set under this law. (2) In such case, the articles of association of the companies referred to in sub-section (1) above must provide in favour of the local authority concerned: 11- leasing; (a) when it is a shareholder, the statutory appointment outside the general meeting of one or more representatives on the board of directors; (b) when it is a bond holder, the right to have its interests defended by a special delegate in the company. (3) Amendments to the articles of association of such a company shall be subject to the prior approval of the representative of the State, when such amendments concern such local authorities.