Issue - meetings

To consider the Business Plan and to recommend to the Council that the Plan and associated actions are approved.

RECOMMENDED:

(a)       that the business plan for the new company together with the proposed articles of association for the company and its subsidiaries, as attached as Appendix 1 to Report item 8 to the Cabinet, be approved;

(b)     that the appointment of 2 members and 2 officers of appropriate seniority to the board of directors of the company and its subsidiaries be approved, such individuals to be agreed by the Chief Executive in consultation with the Leader of the Council, and that consideration be given to use of external, specialist, non-executive positions where appropriate;   

(c)       that authority be delegated to the Cabinet in respect of those matters set out in paragraph 4.4 of the company’s proposed articles or association, as set out in Appendix 1 to Report Item 8 to the Cabinet;

(d)       that the Property investment Task and Finish Group be discontinued, but that regular progress updates be taken to the Corporate Overview and Scrutiny Panel as required, and at least every 12 months;

(e)       that the Council’s indemnity to members and officers be applied to the activities as directors of the company, with the Executive Head Governance and Regulation to arrange for the company to have additional directors’ and officers’ liability insurance likewise to cover the activities of the directors of the company; and

(f)        that the gearing of the company not be fixed at 67%, but instead the debt to equity mix be fluid and evaluated as opportunities arise, to ensure the maximum return to the Shareholder.

The Cabinet considered the Business Plan for the Council’s new property holding company which would implement the Council’s Residential Property Investment Strategy.  This included the company’s operating arrangements and articles of association.  The Business Plan was attached as Appendix 1 to Report Item 8 to the Cabinet.

It was proposed that there would be two subsidiary companies, a lettings company and a development company, to implement the Strategy.  Further details of the role of each subsidiary were set out in paragraph 2.2 of Report item 8 to the Cabinet.  The Council would be the sole shareholder.

The proposed articles of association confirmed the governance arrangements, with each company having its own board, which would initially consist of the same 4 directors, who would be 2 officers, one of whom would act as company secretary; and 2 councillors, one of whom would be the Chairman.

RECOMMENDED:

(a)       That the business plan for the new company together with the proposed articles of association for the company and its subsidiaries, as attached as Appendix 1 to Report Item 8 to the Cabinet, be approved;

(b)     That the appointment of 2 members and 2 officers of appropriate seniority to the board of directors of the company and its subsidiaries be approved, such individuals to be agreed by the Chief Executive in consultation with the Leader of the Council, and that consideration be given to use of external, specialist, non-executive positions where appropriate;   

(c)       That authority be delegated to the Cabinet in respect of those matters set out in paragraph 4.4 of the company’s proposed articles of association, as set out in Appendix 1 to Report Item 8 to the Cabinet;

(d)       that the Property Investment Task and Finish Group be discontinued, but that regular progress updates be taken to the Corporate Overview and Scrutiny Panel as required, and at least every 12 months;

(e)       That the Council’s indemnity to members and officers be applied to the activities as directors of the company, with the Executive Head Governance and Regulation to arrange for the company to have additional directors’ and officers’ liability insurance likewise to cover the activities of the directors of the company; and

(f)        That the gearing of the company not be fixed at 67%, but instead the debt to equity mix be fluid and evaluated as opportunities arise, to ensure the maximum return to the Shareholder.