Municipalities possess a range of powers and responsibilities under the Municipal Act, 2001, S.O. 2001, c. 25 (the "Municipal Act") including the delivery of various key public services. While some municipal services are able to be provided effectively by municipalities themselves, there are circumstances where the unique corporate and governance structures of municipal corporations can serve to limit a municipality’s ability to effectively and efficiently meet these responsibilities.
In recognition of this, section 203 of the Municipal Act authorizes municipalities to establish distinct corporations which are commonly referred to as “municipal service corporations” (“MSC”). This article aims to provide a brief and broad overview of MSCs and their creation.