49 With respect to the existence of a contract, the referring court must consider whether an agreement has been reached between two separate persons. With regard to question 2, the ECJ confirmed that the calculation of Teckal`s core business must take into account all the circumstances of the case, including Cogesa`s activity for the municipalities concerned before they took joint control of the company. The Court therefore concluded that activities already carried out prior to the conclusion of the formal cooperation agreement for the supervisory authorities and which will continue after the conclusion of this agreement must be part of the calculation of the essential activity of the company (and not be considered an activity for a third party). The Court also drew attention to this point, although it did not formally conclude that the activity carried out before the audit could be relevant, but not continuously, to the overall qualitative and quantitative assessment necessary to identify essential activities. How long does it take to set up a teakal and what applications/paper mills need to be followed to do so? On 30 September 2014, the municipality of Sulmona entrusted Cogesa, a company wholly owned by several municipalities in Abruzzo, Italy, including Sulmona (which itself owned 200 of the company`s 1,200 shares) for the management of its waste. It appears that the documents originally formalizing Cogesa`s ownership did not provide for the local authorities to jointly exercise control similar to that of their own services (after the first part of the Teckal test), but that an agreement was reached on 30 October 2014 (before the contract with Cogesa was concluded). 11 In accordance with section 25 of Act 142/90, municipalities and provinces may form a consortium for the joint management of one or more services, in accordance with the provisions of the special undertakings covered by section 23. To this end, each municipal council must approve, by an absolute majority, an agreement at the same time as the consortium`s statutes. The general assembly of the consortium is composed of representatives of the member organizations represented by the mayor, the president or their deputies.

Tuesday, April 13th, 2021

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