Issue - meetings
Local Authority Trading Companies (LATCOs)
Meeting: 11/07/2023 - Cabinet (Item 14)
14 Local Authority Trading Companies (LATCOs) 
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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.
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Decision number:
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Decision:
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112/2023 |
The Cabinet approved the establishment of three shareholder boards (Cabinet sub committees) for each LATCO (inclusive of their subsidiaries. |
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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. |
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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. |
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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. |
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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.