Issue - meetings

     Report by Executive Director Terence Herbert.

Cllr Philip Whitehead, Leader of the Council, presented a report seeking consideration of the detailed arrangements to establish three companies owned by Wiltshire Council.

The Leader summarised the structure and governance arrangements associated with the three companies, which included the Council being the sole shareholder for each of the companies, the council retaining strategic control functions over the company’s activities through its role as shareholder, business plans being monitored by Cabinet, the appointment of Directors and the company’s purchasing services from the Council under separate resourcing contracts.

The Leader indicated that the Cabinet at its meeting on 15 January 2019 had initially nominated him as one of the company Directors. However, since that time Cllr Whitehead had been elected as Leader of the Council and was therefore excluded from becoming a Director.  He reported that Cllr Bridget Wayman, Cabinet member for Highways, Transport and Waste, was now nominated as his replacement to become a Director.  

In response to a question from Cllr Pauline Church about how transparency is assured for the three new companies, the Director of Housing and Commercial Development referred to the shareholders agreement and the monitoring of the company’s Business Plan by Cabinet. 

In response to an additional question from Cllr Alan Hill about the involvement of Scrutiny in the overall process, the Leader of the Council welcomed this proposal.

The Cabinet noted that the Financial Planning Task Group considered the report at its meeting held on 22 July 2019.  The Task Group raised a query about the proposed level of remuneration for Independent Directors was sufficient to attract those with the required skills and expertise. They also welcomed the overall direction of travel and congratulated those involved on the amount of work undertaken.

Resolved:

1.    To agree to the shareholder agreements as set out at appendix A of the report.

2.    To agree to the articles of association of the companies as set out at appendix B of the report.

3.    To agree to the business plan for the companies as set out at Appendix C of the report at minute 114

4.    To agree to appoint Hazlewoods LLP as auditors of the companies for the financial year 2019/20.

5.    To agree loan finance of £ 9.550m in 2019/20 to Stone Circle housing company on terms set out at appendix D of the report.

6.      To agree a virement of £7.3 million from Commercial Investment approved 2019/20 budget to Local Development Company to create a total budget of £12.3 million. To re-profile the revised budget to show £0.8 million in 2019/20, £11.1 million in 2020/21 and £0.4 million in 2021/22 so that it is in line with the Local Development Company Business Plan.

7.    To agree loan finance of £ 0.670m in 2019/20 to Stone Circle development company on terms set out in appendix D of the report.

8.    To agree to the transfer of New Zealand Avenue, Ashton Street resource centre and Marlborough resource centre sites subject to Stone Circle development company providing a  ...  view the full minutes text for item 108