Agenda and minutes

Members are asked to disclose any interests in matters for consideration at the meeting.

No interests were disclosed.

                                                                                                                  (Enclosure)

The minutes of the meeting held on 3 October 2016 were proposed, seconded and agreed as a correct record.

Report number CFM403 of the Corporate Finance Manager.      (Enclosure)

(Please note that appendix 1 of the draft business plan is exempt under paragraph 3 of Schedule 12A of the Local Government Act 1972 as amended because it contains information that is commercially sensitive)

Decision:

1.    The Shareholder Committee agrees to the formation of a single company structure

2.    The Shareholder Committee agrees the contents of the business plan (appended to report number CFM403) with its focus on the development of new, quality housing

3.    The Shareholder Committee recommends the incorporation of the necessary funding arrangements (as set out in the Business Plan) into the budgetary framework proposals for 2017/18

4.    The Shareholder Committee approves the appointment of the directors for the company as listed on page 4 of report number CFM403 subject to the review of those appointments at the company’s Annual General Meeting and agreement by each individual that they understand their roles and responsibilities and any further independent legal advice has been sought

5.    The Shareholder Committee is asked to approve the formal registering of the company under the name Gravitas Housing* once confirmation has been received from all directors that they understand their roles, responsibilities and their position with regard to liability.

*If, at the time of registration, Gravitas Housing is not available, the company should be registered as TaSK Housing.

The Corporate Finance Manager summarised report number CFM304 on the draft business plan for the Local Authority Controlled Company and its associated governance arrangements. He summarised the key areas that the committee was being asked to consider at the meeting:

·         The formation and structure of the company

·         The contents of the business plan

·         The incorporation of the business plan requirements within budget proposals

·         The employment of directors

·         The name of the company to enable formal registration

It was clarified that the varying references within the report to ‘the business plan’, ‘the housing business plan’, ‘the draft business plan’, etc. all related to the same business plan: that which was attached to the report as an appendix to the report.

The Corporate Finance Manager explained that while it had been the original intention to set up an umbrella company with subsidiaries, internal and external legal advice and the experience of other local authorities had led to a change in recommendation. The Shareholder Committee was being asked to consider the formation of a standalone company with a focus on housing. It was felt that for a single stream of work the governance for a parent/subsidiary arrangement would be too cumbersome. Starting with a single company would not prevent the future creation of a parent company with subsidiaries. Two potential areas of work for the company were suggested; the first was intervening in the rental market to raise standards and address the priorities areas of improving neighbourhoods and tackling fuel poverty. The second option related to a new build project in respect of a piece of land that was in the Council’s ownership (discussed in the exempt appendix to the business plan). It was noted that concentrating on new builds in the first instance could dovetail with Government initiatives on starter homes that the Council had expressed an interest in.

Members supported the recommendation to create a single company in the first  ...  view the full minutes text for item 8.

The meeting was closed at 15:06.