Issue - meetings

There will be a briefing on the governance structure for Local Authority companies. There will be a presentation at the meeting. Panel Members may ask questions and also consider the next steps for any scrutiny of such companies.

Michael Hewitt, Director Legal and Democratic Services, introduced the report and gave a presentation which covered the following:

·  Company Governance

·  Group Structure

·  Overview

·  Background

·  Recommendations from EY

·  Council Report resolutions

·  Protocol 3 principles – Principle 1 Freedom and Controls

·  Principle 2 – Roles and Responsibilities

·  Principle 3 – Relationships, Integrity & Accountability

·  Key Documents

·  Shareholders agreement

·  Reserved matters

·  Scrutiny

·  Current position

Panel members asked the following questions and raised the following points:

(Officer responses shown in italics)

Councillor MacFie asked if there are any competitors. The officer explained that there is a site in which ADL competed in the market place at Sladebrook Road.

Councillor Elliott asked about a business plan. The officer responded that Panel members can see the business plan as the original decision maker has seen it. This can be circulated to Panel members subject to a duty of confidentiality.

In response to a query from Councillor Myers, the officer explained that the Leader of the Council is considered the shareholder representative and can make some decisions, but the Cabinet would be convened for a significant decision.

In response to a query from Councillor Hodge, the officer explained that Panel members will be entitled to the same reports as the original decision maker, on a confidential basis, as only then can the Panel make sure that the Cabinet has held the company to account. Also, regarding bonus payments – when a company decides to make an award, it is a reserved matter and relates to named individuals – Panel members are able to see that information.

Councillor Furse stated that the company manages public money and asked if relevant scrutiny meetings would be held in public. The officer responded that the Panel can scrutinise whether the company is meeting its performance targets and providing a dividend but would need to resolve to move into exempt session where confidential information is discussed. Panel members could make recommendations if they felt that the company was not doing its job.

Councillor Myers thanked the officer and asked for an updated copy of the diagram in the presentation for a future discussion.