To receive any public questions, statements or petitions submitted in accordance with the Constitution. Further information on the requirements for submitting these is available to view at the following link:-
https://democracy.bcpcouncil.gov.uk/ieListMeetings.aspx?CommitteeID=151&Info=1&bcr=1
The deadline for the submission of public questions is midday Tuesday 28 May.
The deadline for the submission of a statement is midday Friday 31 May.
The deadline for the submission of a petition is 10 working days before the meeting.
Minutes:
There were 3 public Questions from Alderman Chappell
1.Will the Council continue to make an annual grant/subsidy to the CLG as part of the financial settlement? How will this be secured?
No is the direct and straightforward answer, and consequently nothing beyond what has been agreed is secured.
To be clear, there shall no longer be an annual grant. The Council has committed to provide £2m upfront in addition to the asset transfer of the Study Centre (c£500k), a one off maintenance grant (£250k), and the transfer of any residual reserve amounts on vesting day. No further financial support is included in the Council’s Medium Term Financial Plan (MTFP).
However, the £2m is broadly equivalent to 5 years of support based on recent activity, so could be inferred as covering 5 years but the company shall need to manage its financial affairs and, subject to how successful or otherwise the company is, the £2m may last for a longer or shorter timeframe.
Whilst there is not an expectation from the Council’s perspective of requests for further financial support, the February decision does not forbid any request being made now, or in the future by the Russell Cotes Art Gallery and Museum, but any decision to provide more financial support shall need to be made in line with the normal financial regulations and governance processes.
2.In the event of the CLG going into administration what will happen the Museum and the Collection? Will it be disposed of as the Administrator deems fit?
We understand that the Museum, house and collections are held in permanent endowment and therefore there is no legal mechanism for them to be sold or disposed of in any circumstances. The purpose of the new governance arrangements is to ensure the long term financial and organisational sustainability of the Rusell-Cotes. The precise arrangements, therefore, in the unlikely event of the CLG going into administration are subject to legal advice from Sharp Pritchard which is below.
The charity is an unincorporated charity and therefore has no separate legal personality. This means it cannot technically become insolvent as it falls outside the corporate insolvency regime and none of the statutory insolvency procedures apply to the charitable trust itself. The CLG will hold the legal title of the charity’s property on trust for the charity’s specific charitable purpose, enter into contracts and obligations on behalf of the charity, and be responsible for managing and administering the affairs of the charity. Any property or liabilities will legally be the property or liability of the CLG. The term insolvency will be used in the context of describing a situation where the charity’s available assets are insufficient to cover the liabilities of its charity trustee i.e., the CLG. This means that the charity cannot pay its debts either with its income or its assets. Whilst the charity itself cannot become ‘insolvent’, inability to pay debts could result in the CLG becoming insolvent. In this instance, the corporate insolvency regime will be applicable to the CLG as it is a company.
Assets which a company holds on trust for a third party do not fall within an insolvent estate. In relation to Russell-Cotes, any assets held by the CLG on trust for the charity will not be included in the insolvent estate. This includes the building and Collections as identified in the Indentures. Any of the assets not held on trust would be available to meet the claims of creditors in the event of ‘insolvency’.
3.Kindly provide details of the new IT, legal and financial arrangements. Will the Board be able to externalize these services - or will the Town Hall continue to provide them
Currently, the museum receives its ICT, finance and HR support services from the council. As part of the changes toward full independence, the new body (RCAGM Sole Trustee Ltd) will procure a new provider for each of these services. Through the NLHF-supported Governance Change project, a scope of works is being developed for each of these areas, to use as the basis for good value provision to be identified, suitable to the scale of the newly independent museums.