Agenda item

To note the resignation of the Chairman of the LeisureSK Limited Board from 31 March 2025 and consider the appointment of a new Director of LeisureSK Limited.

(The Cabinet Member for Corporate Governance and Licensing declared an interest as a Director of LeisureSK Ltd, he left the Chamber for this item).

The Assistant Director (Governance and Public Protection) and Monitoring Officer stated there was not a need for the Committee to go into private session, unless they wished to discuss individual people.

The report sought to appoint Mr David Scott onto the Board of LeisureSK Ltd in place of Mr Paul Sutton, who had previously been appointed on an interim contract.

It was noted that Deborah Roberts had resigned as Chairman and a Member of the Board with effect from 31 March 2025.

The Council had not made a nomination for replacement following the resignation of Deborah Roberts.

It was suggested whether the Committee felt it was appropriate to delegate the appointment to the Head of Paid Service in consultation with the Chairman of Governance and Audit.

-       One Member felt it was necessary for Mr David Scott to complete his Director training ahead of his appointment.

The Deputy Chief Executive confirmed that Mr David Scott would be supported through training to ensure he was aware of his roles and responsibilities.

-       Concern was raised on the restrictions on putting certain employees of the Council on the board of a Council owned company.

-       One Member noted that since its inception in 2020, the company had 15 Officers and 10 resignations. It was felt that staff turnaround for LeisureSK Ltd should be looked into as a risk.

The Deputy Chief Executive clarified the restriction element of Officers was in respect of statutory officers that were not permissible on working for the Council and the company as this could lead to internal conflict.

The relationship between the Council and LeisureSK Ltd would change as of 1 April 2025, as LeisureSK Ltd become a collecting body on behalf of the Council working under an agency model.

-       Members discussed the lack of skill sets experienced historically with previous Directors of LeisureSK Ltd.

-       Further information was requested on the extent of impact the move towards the agency model would have on the company.

The Deputy Chief Executive highlighted the business case for the change of model was heard and approved at a meeting of Cabinet on 10 September 2024.

-       One Member assessed whether an agency needed to be in place or whether the company could be run in house. 

The Deputy Chief Executive confirmed the move to the agency model was a taxation strategy and was the best position for the Council and taxpayers.

-       Further concern was raised on the selection of individuals for the appointment in replacement of Deborah Roberts. It was felt that individuals may not have the skill set to become a director of a company, prior to any training. 

It was suggested that the delegation for the appointment included the Leader of the Council and relevant Cabinet Member in order to consider and understand the skill set of the individual nominated for the appointment.

It was proposed, seconded and AGREED:

1.    Approve the appointment of Mr David Scott to the Board of LeisureSK Limited, in place of Mr Paul Sutton.

2.    To delegate the appointment of a new Director for LeisureSK Ltd to the Head of Paid Service in consultation with the Leader of the Council and the Cabinet Member for Culture and Leisure.