Purpose

In response to the recommendations of the
independent governance review, together with lessons learnt
concerning the council’s arrangements for managing its
arm’s length development company, BCP FuturePlaces Limited,
and a self-assessment review carried out by the council’s
internal audit team, this report reviews the shareholder governance
arrangements for council companies and recommends changes designed
to provide clearer understanding of the respective roles,
decision-making arrangements, and improved
accountability.

Content

RESOLVED that Cabinet:
-

(a)           
Approved the shareholder governance model set out
at Appendix 1 for adoption by the Council in relation to all
Council companies with immediate effect, subject to the amendment of the third red box on the right,
replacing the words “Company has no role at scrutiny
–“ with “Company may be requested to provide
evidence to support scrutiny as required .”;

(b)          
Noted that the future arrangements for Council
companies will be based on the Local Partnerships best practice
model, Local Authority Company Review Guidance;

(c)           
Noted that a review of all Council companies will
be undertaken based on the work started by internal audit and
actions plans completed to ensure that the company arrangements
comply with the best practice model. This review will be completed
by 31 March 2024 with progress and subsequent action plans reported
to Cabinet in July 2024;

(d)          
Noted that the review of council companies will
also consider in each case whether the original reason for
establishing the company still applies and appraise the future
options for delivering the function performed by the company,
taking into account the cost benefits, the benefits to residents,
the potential for accountability and transparency, and the
avoidance of potential conflict between the aims of the council and
those of the council company; and

(e)           
Noted that although the scope of this report is
limited to companies where the council is a shareholder, a second
phase that will be the subject of a future report will consider
council control and representation on the boards of other
organisations such as charities, associations, community interest
companies, and societies.
Voting: Unanimous
Portfolio Holder: Transformation and
Resources
Reason
To ensure that all
Council owned companies operate within effective and transparent
governance.