Purpose

1.1 The report provides an
update to Cabinet from the Croydon Companies Supervision and
Monitoring Panel (CCSMP), established by Cabinet on 26 July 2021,
as a response to the governance failings identified in Grant
Thornton’s Report in the Public Interest, issued in October
2020. The Council had created a series of complicated company
structures but did not have the right control or oversight in place
to ensure the effective management of them. This had led to a
situation where relationships were not understood, and regulatory
failings resulted in the strike-off of one of the Council’s
subsidiaries.
 
1.2 Amongst the recommendations
accepted by Cabinet on 26 July 2021 was a requirement that the
Council review arrangements to govern its interest in subsidiaries
and ultimately ensure the Council’s and taxpayers’
interests are safeguarded. The work of the panel ensures that the
Council’s strategic objectives are met, the financial impact
of Council companies is understood, and regulatory failings such as
strike offs are avoided. 1.3 The report provides an update on the
status of Council companies that exist but excludes Brick by Brick
(Croydon) Limited.
 
1.3 This is monitored in
accordance with the powers delegated by the Cabinet to the
Corporate Director of Resources, in consultation with the Executive
Mayor, at the meeting held on 14 February 2024.

Content

For the reasons set out in the
report, the Executive Mayor and Cabinet AGREED:
 
2.1 To delegate to the
Corporate Director of Resources and S151 Officer, in consultation
with the Executive Mayor and Cabinet Member for Finance, the power
to exercise shareholder functions and dissolve companies subject to
necessary legal and financial due diligence and consultation at
Croydon Companies Supervision and Monitoring Panel.
 
2.2 To approve to incorporate
the authority to dissolve companies within the CCSMP Terms of
Reference.
 
2.3 To note the status of
Croydon Council companies as set out in Appendix 1.