Eligibility for a division by separation

An enterprise operated by a local government body, or by a network of local government bodies that is not a local government body, may be separated out of the assets of this authority or this network only for purposes of the absorption of this enterprise by a commercial partnership, a share capital company or a registered cooperative society, or for purposes of new formation of a share capital company or a registered cooperative society; furthermore, it will be eligible for a division by separation only in those cases in which this is not contravened by the laws of the Federation or the laws of a federal Land that govern for the authority or the network.