RESOLVED that Cabinet: -
(a) Approved the shareholder governance model set out at Appendix 1 for adoption by the Council in relation to all Council companies with immediate effect, subject to the amendment of the third red box on the right, replacing the words “Company has no role at scrutiny –“ with “Company may be requested to provide evidence to support scrutiny as required .”;
(b) Noted that the future arrangements for Council companies will be based on the Local Partnerships best practice model, Local Authority Company Review Guidance;
(c) Noted that a review of all Council companies will be undertaken based on the work started by internal audit and actions plans completed to ensure that the company arrangements comply with the best practice model. This review will be completed by 31 March 2024 with progress and subsequent action plans reported to Cabinet in July 2024;
(d) Noted that the review of council companies will also consider in each case whether the original reason for establishing the company still applies and appraise the future options for delivering the function performed by the company, taking into account the cost benefits, the benefits to residents, the potential for accountability and transparency, and the avoidance of potential conflict between the aims of the council and those of the council company; and
(e) Noted that although the scope of this report is limited to companies where the council is a shareholder, a second phase that will be the subject of a future report will consider council control and representation on the boards of other organisations such as charities, associations, community interest companies, and societies.
Voting: Unanimous
Portfolio Holder: Transformation and Resources
Reason
To ensure that all Council owned companies operate within effective and transparent governance.