Purpose

1.1. The Council is the 100%
shareholder of Lichfield West Midlands Trading Services.
 
1.2. The shareholder agreement
and the articles of association ensure the Council retains
oversight of operations and direct control over the most important
governance aspects of decision making.
 
1.3. These documents can
provide a balance between commercial freedom and flexibility and
the maintenance of assurance over reputation and use of public
funds. It will retain control over:
 
• Appointing and removing
directors
• Agreeing the business
plan
• Agreeing and potentially
providing funding routes
• Allocation of additional
shares
• Agreeing changes to the
articles of association
• Declaration of a
dividend
• Required levels of
performance
• Approving and removing
auditors
 
1.4. This Cabinet Member
decision is to agree the Business Plan approved by the Company
Board on 27 February 2025.
 
1.5. LWMTS is currently a
TECKAL compliant company in that 80% of its income is from the
Council. Should LWMTS seek to trade more widely, thereby increasing
the external income above the 20% threshold, then this would
increase its financial risk profile.
 
1.6. The increase in financial
risk would need to be considered by the Council as shareholder in
terms of risk mitigations including its minimum level of reserves.
Therefore, prior to any decision to increase trading above the 20%
threshold, a proposal must be submitted to the Council as a
shareholder for approval.

Decision

Cabinet Members agreed the LWTMS Business Plan
for 2025/26 approved by the Company Board on 27 February 2025.