Since March 2006, the company is allowed to perform its activities over national territory and abroad be they directly, through participation in public or private companies, accords, national or international consortiums or though the constitution of subsidiaries.
The law 12.292/2006 included in the law 119 of 29 of June 1973, in the 1st article, the paragraphs 5, 7 and 8.
1st article - The Executive Board is hereby authorized to constitute a partnership through shares, under the name of Compania de Saneamento Basico do Estado de São Paulo - SABESP (Basic Sanitation Company of the State of Sao Paulo), with the purpose of planning, executing and operating all basic sanitation services in all of the Sate of São Paulo, respecting each city´s autonomy.
§ 5° - Assured, as a priority the correct and adequate conditions of operation and efficient administration of sanitary services within the State of São Paulo - SABESP may perform, over Brazil and abroad, the services described in the "caput" of this article.
§ 7° - The Basic Sanitation Company of the State of Sao Paulo- SABESP may, as long as permitted by the executive board, have participation in public companies or partnerships combining mixed economies, benefiting from fiscal incentives, according to the applicable legislation and participate in accords or national and international consortiums.
§ 8° - The Basic sanitation Company of the State of São Paulo - SABESP, may, as long as permitted by the executive board, for each case, constitute a subsidiary benefiting from the fiscal incentives, according to the applicable legislation or under the same condition and out of the jurisdiction of the State, join or participate in any private company connected to the basic sanitation sector.
The social statute approved on June 19th 2005 already abridges market and business opportunities for Sabesp:
Paragraph 1 - The company may perform, in Brazil and abroad the services described in the "caput" of this article as well as services correlated to its social objective, and may, as long as permitted by the executive board, also participate in public companies or partnerships combining mixed economies benefiting from the fiscal incentives, according to the applicable legislation and particpate in accords or national or international consortiums.
Paragraph 2 - The company may, as long as permitted by the executive board, for each case, constitute a subsidiary benefiting from the fiscal incentives, according to the applicable legislation or under the same condition and out of the jurisdiction of the State, join or participate in any private company connected to the basic sanitation sector.
3rd article - The company's headquarters and district office are situated in São Paulo capital, and is allowed to set, keep or terminate branches, subsidiaries, agencies or offices in any reference mark of national territory and abroad, through deliberation of the administrative council.
