This meeting's agenda included a verbal update on the Shareholder Cabinet Sub-Committee's work and two reports: one on the governance of council-owned companies, and another on the appointment of members to company boards.

Governance of Council Owned Companies

The council officers' report on the Governance of Council Owned Companies presented an overview of four companies the council has a significant interest in:

• Northamptonshire Children's Trust: A children's services company owned jointly by West Northamptonshire Council and North Northamptonshire Council.
• West Northamptonshire Norse: A joint venture with Norse Commercial Services, providing environmental services in West Northamptonshire.
• The Daventry Estate Company Limited: A company that lets and operates properties on the Middlemore estate in Daventry .
• Opus People Solutions (East) Limited: A temporary staffing company owned by a consortium of councils.

The report proposed a 'governance health-check' for each of these companies, to

check that there are robust corporate governance mechanisms in place in respect of companies in which the Council has significant control [or a significant interest] so that:

a. these companies can achieve their objectives; and

b. the Council can safeguard its interests and ensure each company’s activities continue to align with the Council’s strategies and values.

It suggested that these reviews be carried out by a combination of the council's Internal Audit department and Legal Services, or by an external provider. The report included an appendix containing Local Partnerships LLP's guidance on Local Authority Company Reviews.

Company Board Membership

The second report concerned the appointment of Councillors and officers to the boards of companies.

This report provides the Sub-Committee with an overview of the factors that must be taken into account when the Council as Shareholder is considering the appointment of a Member or an Officer to the board of directors of a company.

The report provided a summary of the duties and responsibilities of company directors. It also discussed the potential for conflicts of interest, when a Councillor's duties as a director might conflict with their responsibilities as an elected member. To address this, the report recommended that the Monitoring Officer produce guidance for Councillors and officers on the appointment of Members and Officers to company boards for use across the Council including how to manage conflicts of interest and training.