Issue - meetings

Local Authority Trading Companies (LATCOs)

Meeting: 11/07/2023 - Cabinet (Item 14)

14 Local Authority Trading Companies (LATCOs) pdf icon PDF 142 KB

Minutes:

Background:

This report sought Cabinet approval to change the governance model of the Council’s LATCOs, by replacing councillor representation on the boards of directors by independent directors (executive or non-executive) and the establishment of shareholder boards to perform the shareholder responsibilities.

Decision

number:

 

Decision:

 

112/2023

The Cabinet approved the establishment of three shareholder boards (Cabinet sub committees) for each LATCO (inclusive of their subsidiaries.

113/2023

The Cabinet agreed to delegate authority to the Assistant Director, Legal and Governance, in consultation with the Leader of the Council, to:  

·         finalise the terms of reference for each shareholder board;

·         review and, where necessary, amend the articles of association for each LATCO, to improve transparency, accountability, oversight and refine matters reserved for shareholder approval.

114/2023

The Cabinet agreed to delegate authority to each shareholder board to exercise decisions that are reserved to the shareholder and to respond to matters raised by the board of directors.

115/2023

The Cabinet agreed to delegate authority to the Assistant Director, Legal and Governance, in consultation with the relevant Chairperson for each shareholder board, to take decisions that are required as a matter of urgency.

116/2023

The Cabinet agreed to request the Leader of the Council to determine the membership of each shareholder board and the chairperson.

Reasons:

The Cabinet was requested to approve the recommendations above to improve the corporate governance of the Council’s LATCOs.