Issue - meetings

Report of Head of Law and Governance

Purpose of report

To confirm the appointment of two of the statutory officers to act as the formal representatives of the Council’s shareholding interests in the Graven Hill companies and the proposed local housing company.

Recommendations

The meeting is recommended:

 1.1        To approve the appointment of the section 151 officer, and the monitoring officer in the absence of the section 151 officer, as the authorised representatives of the Council’s shareholding interests in Graven Hill Village Holdings Company Limited, Graven Hill Village Development Company Limited and the proposed local housing company.

1.2         To delegate authority to the section 151 officer, and the monitoring officer in the absence of the section 151 officer, to take all necessary shareholder action and to exercise all necessary shareholder discretion in relation to the three said companies in consultation with the Lead Member for Financial Management.

1.3         To require that all future business cases for proposed council companies that are submitted as part of the approved confederation approach include a recommendation as to the most appropriate officer shareholder representative. 

Resolved

(1)          That the appointment of the section 151 officer, and the monitoring officer in the absence of the section 151 officer, as the authorised representatives of the Council’s shareholding interests in Graven Hill Village Holdings Company Limited, Graven Hill Village Development Company Limited and the proposed local housing company be approved.

(2)          That authority be delegated to the section 151 officer, and the monitoring officer in the absence of the section 151 officer, to take all necessary shareholder action and to exercise all necessary shareholder discretion in relation to the three said companies in consultation with the Lead Member for Financial Management.

(3)          That all future business cases for proposed council companies that are submitted as part of the approved confederation approach be required to include a recommendation as to the most appropriate officer shareholder representative. 

The Head of Law and Governance submitted a report to confirm the appointment of two of the statutory officers to act as the formal representatives of the Council’s shareholding interests in the Graven Hill companies and the proposed local housing company.

Resolved

(1)          That the appointment of the section 151 officer, and the monitoring officer in the absence of the section 151 officer, as the authorised representatives of the Council’s shareholding interests in Graven Hill Village Holdings Company Limited, Graven Hill Village Development Company Limited and the proposed local housing company be approved.

(2)          That authority be delegated to the section 151 officer, and the monitoring officer in the absence of the section 151 officer, to take all necessary shareholder action and to exercise all necessary shareholder discretion in relation to the three said companies in consultation with the Lead Member for Financial Management.

(3)          That all future business cases for proposed council companies that are submitted as part of the approved confederation approach be required to include a recommendation as to the most appropriate officer shareholder representative. 

Reasons

It is necessary to appoint appropriate officer representatives to take decisions on the Council’s behalf as shareholder in each the three companies. Given the nature of the Council’s anticipated financial interest in each of them it is recommended that the most appropriate officer to fill this role is the statutory officer with responsibility for safeguarding the Council’s finances with the statutory officer responsible for ensuring the Council acts lawfully as a substitute in absence.

Alternative options

Option 1: Not to appoint an authorised shareholder representative for each of the companies. This is rejected as the council’s shareholder interests need to be adequately protected and the companies’ cannot function long term without the facility to taker shareholder decisions effectively.

Option 2: To appoint alternative authorised officers to those recommended. This is rejected as the two statutory officers are considered to be the most appropriate for the reasons set out in the report above.