Clause 164A (Major transactions) requires the regional representative group of each entity to authorise major transactions affecting the entity’s assets. The bill defines major transaction as high value transactions affecting more than 50% of any entity’s asset value. It includes transactions to acquire more assets, dispose of entity assets, or incur obligations over them. This Supplementary Order Paper reduces the asset value threshold that triggers the requirement for a decision to be supported by 75% or more of the members of the regional representative group to 25% of asset value. This would strengthen the protection of entity assets against disposal or significant debt liabilities by ensuring that regional representatives scrutinise significant transactions to help ensure that they are appropriate and in the best interests of the entity and the provisions of water services. Section 164A is based on similar requirements in company law.

The Supplementary Order Paper also ensures that any proposals for divestment would have to come from the entity itself on its initiative; rather than an external party or private company.