Local government is a system of district, territorial unit, which has their own

boundary,legal entity, instructional structure, power and tasks, which is subject to certain act,
has a financial authority and other autonomy.

The first characteristic of local government in Malaysia is it is a body corporate. Body

corporate means a corporate entity which has a legal existence. This include private
company, public company, small company and so on. It has a seal, perpetual succession, can
sue and be sued. This means that any change in membership of a company does not affect the
status of a company. Any death, insolveny, insanity of a member does not affect the
continuity of the company. The local government can sued any party is any misconduct
happen and it can also be sued by any party.

Second characteristic of local government in Malaysia is it has a definite territory

delineated by the State Government. A definite territory is the area covers for certain local
government is already gazetted by the State Government. For example is Raub district
council that covers an area of 2,269 km/squarefeet.

Next, local government in Malaysia has financial and administrative autonomy. This
is the administration of all taxes, rates, rents, license fees, dues and other sums or charges
payable to the local authority.

Lastly, local government in Malaysia can make by-laws. A local government may
from time to time make, amend or revoke by-laws for the better carrying out of the provisions
the Local Government Act 1976 (Act 171).