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Decision details

Amended Terms of Reference for Shareholders Panel for Council Owned Trading Companies (EX/20/19)

Decision Maker: Executive

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

Decision that

 

1.    the reconstitution of the Hertsmere Developments Limited Shareholder Panel as the Hertsmere Shareholders Panel, be approved.

 

2.    the terms of reference attached as Appendix A to the Officers Report as the amended terms of reference for the Hertsmere Shareholder Panel to the intent that that the Panel shall in future be responsible for the governance oversight, business plan review and performance monitoring of all trading companies which are wholly or partially owned by the Council, be approved.

 

Reasons for the Decision

 

In light of significant actual and anticipated financial investment in the Council Owned Trading Companies and the expected returns from them, it is imperative that the Council has a dedicated supervisory body to ensure the sound and robust monitoring and oversight of its subsidiary’s performance and its governance arrangements.

 

The Council has already approved the establishment of a Shareholder Panel for HDL and in accepting the recommendations in the Action Plan attached to the SIAS report has agreed that the remit of the panel should be extended to include all Council Owned Trading Companies including Elstree Film Studios Ltd and others.

 

It is important to note that the agenda and minutes of the Panel will be available under the Freedom of Information Act, albeit subject to the exempt information requirement. However, as the Panel meetings won’t take place in public this means that debate and discussion can be conducted openly. This will assist the Council in robust monitoring in order to protect the tax payers’ interest in these companies.

 

Alternative Options Considered and Rejected

 

Not to follow the recommendations of the Shared Internal Audit Services (SIAS) contained in report on the Governance of Council Owned Companies may result in any decisions made by the Executive in relation to these companies could also be at a risk of challenge.

 

Report author: Sajida Bijle

Publication date: 21/01/2020

Date of decision: 15/01/2020

Decided at meeting: 15/01/2020 - Executive

Accompanying Documents: