Redland City Council will review its advisory arm Redland Investment Corporation.
It follows an announcement last year by council that it would review a Crime and Corruption Commission report on culture and corruption risks in local government.
Mayor Karen Williams said today the time was right for a review to ensure RIC continued to deliver benefits for the community.
"It is now five years since RIC was formed so it makes sense for council to have a look at it to ensure it is delivering for the community," she said.
"In that time RIC has delivered $2 million in dividends to the Redlands Coast community and delivered and started some important projects that will support the future of our city.
"This includes work starting this week on the Weinam Creek project which will deliver vital community infrastructure."
RIC has been the source of community complaints, with some people arguing it is a waste of money and others saying council itself could be undertaking the same work.
RIC has advised on things like the sale and purchase of public land.
The CCC report followed an investigation into trouble-prone Ipswich City Council.
One of the CCC's four recommendations was that the Local Government Department probe whether council-owned companies were needed.
Redlands set up the wholly-owned subsidiary Redland Investment Corporation in 2014 to find alternative revenue sources and business opportunities.
The CCC said in its report that council-owned companies were not subject to the same level of transparency, oversight and accountability as council operations and local government employees.
"...As controlled entities are not classified as units of public administration, the CCC does not have the jurisdiction to investigate allegations involving these companies or the conduct of their directors," the report said.
"The CCC investigation found that the use of controlled entities by the Ipswich City Council gave rise to a number of serious corruption risks ..."
Cr Williams said today council and community expectations had evolved and the review would ensure council continued to meet expectations.
The review would also respond to local and state government changes.
"There has been a great deal of discussion regarding council-controlled entities in other cities, including detailed reports into their operation and governance," she said.
"This review will consider these learnings, along with what is the best business model to deliver for the future of the community."
Cr Williams said all RIC projects would continue, with the report to be considered by the next council which would be elected in March next year.
