Agenda item

EnvironmentSK Ltd - Appointment of Director Arrangements

This report proposes changes to the director arrangements for Environment SK Ltd and Environment SK Commercial Services Ltd.

Minutes:

Members were presented with a report on the appointment of Director arrangements for Environment SK Ltd and Environment SK Commercial Services Ltd.

The proposals for new Director appointments were due to recent changes that The Leader of the Council had made to Cabinet Member Portfolios following Councillor Dr Peter Moseley’s recent resignation from Cabinet. Mark Jones had also retired from his role and a new appointment was to be sought as a replacement.

The Director appointments were sought as follows:

Environment SK Ltd

·            Councillor Robert Reid, Cabinet Member for Housing and Property

·            Councillor Adam Stokes, The Deputy Leader of the Council

·            Councillor Paul Wood

·            Claire Moses

 

Environment SK Commercial Services Ltd

·            Councillor Robert Reid, Cabinet Member for Housing and Property

·            Councillor Adam Stokes, The Deputy Leader of the Council

·            Councillor Paul Wood

·            Ken Lyon

·            Claire Moses

 

The appointments ensured that both the Directorships for Environment SK Ltd and Environment SK Commercial Services Ltd were aligned.

The Committee raised the following:

 

·            Concerns over the inclusion of grounds maintenance within the Housing and Property Portfolio, with Councillor Robert Reid being appointed to the Companies.

 

The Leader advised that Housing was indeed of high importance to the Authority and would continue to be so. The Director appointment would sit as an addition to the Cabinet Member’s responsibilities. Councillor Reid provided assurances that a work plan was in place to oversee his duties. Housing was a top priority.

 

Clarification was provided with regard to any conflict of interest between Councillor Reid’s role as Portfolio Holder for Housing and the ground maintenance requirements for the HRA, where any decisions were to be made. The Monitoring Officer had advised that there were no decisions anticipated with Environment SK Ltd that would be of a conflict of interest and any as such would be as an exception and would need to be declared.

 

·            Welcomed the inclusion of Councillor Paul Wood, from the Independent group, as a Director.  It was clarified that this was a personal appointment, not on behalf of the Independent Group.

 

·            Did Councillors receive remuneration for their directorships of the Council’s owned Companies?

 

The Leader advised that no allowance or remuneration was received.

 

·            Who held the ‘client role’ within South Kesteven District Council for Environment SK Ltd and was there a clear separation between the roles of the Directorships?

 

Gary Smith as Director for Commercial and Operations would oversee the client role and link with Environment SK Ltd.  There was a clear and distinct separation between South Kesteven District Council and Environment SK Ltd.  Officers of Council reviewed the work of the Company to ensure standards and any issues were raised directly.

 

·            What would Claire Moses provide the Company as a Director?

 

The Chief Executive advised that Claire Moses had vast experience within IT, Leadership, Finance and Customer Care. Her abilities would prove a great asset to Environment SK Ltd. Claire was keen to take upon the role, increase skills set and be of benefit to the Company.

 

·            Was it anticipated that Environment SK Commercial Services Ltd would start trading within 2021?

 

Environment SK Ltd is reviewing its business plan which would be presented to Committee. Environment SK Ltd is a Teckal company, therefore can only perform 20% of its work outside the Council’s portfolio. Should it increase beyond that, then Environment SK Commercial Services Ltd would undertake the work, to keep in line with the requirements of a Teckal company. The Leader advised that Environment SK Ltd was currently at 9% and fell well within the 20%.

 

The recommendations of the report were proposed and seconded, following a vote they were AGREED.

 

DECISIONS:

1.          That Companies Committee approved the appointment of Councillor Robert Reid, Councillor Adam Stokes, Councillor Paul Wood and Claire Moses as Directors to Environment SK Ltd.

2.          That Companies Committee approved the appointment of Councillor Robert Reid, Councillor Adam Stokes, Councillor Paul Wood, Ken Lyon and Claire Moses as Directors to Environment SK Commercial Services Ltd.

 

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