Ontario Regulation 599/06 requires municipalities to complete the following steps before creating an MSC:
“Duties of A Municipality
Business case study[MS1] [2] [KM3]
6. A municipality shall adopt a business case study before it uses the powers referred to in section 3, 4 or 5 to,
(a) establish a corporation either alone or with one or more other public sector entities;
(b) purchase securities in a corporation established by one or more public sector entities other than the municipality;
(c) become a member of a corporation established by one or more public sector entities other than the municipality; or
(d) submit, with respect to a corporation for which a study was undertaken under clause (a), (b) or (c), or cause a corporation for which a study was undertaken under clause (a), (b) or (c) to submit, articles of amendment or any other articles or supplementary letters patent. O. Reg. 599/06, s. 6.
Asset transfer policies
7. (1) A municipality shall adopt and maintain policies on asset transfers to corporations. O. Reg. 599/06, s. 7 (1).
(2) A municipality shall not transfer any of its assets to a corporation before the municipality adopts the policies referred to in subsection (1). O. Reg. 599/06, s. 7 (2).
Public participation
8. Before establishing a corporation under section 3, a municipality shall consult with the public about the proposal to establish the corporation. O. Reg. 599/06, s. 8.”