Agenda and draft minutes

There were none.

The record of the meeting held on 31 January 2024 was agreed by the Sub-Committee and signed by the Chairperson as correct.

Disclosable pecuniary interests

There were none.  

Other significant interests (OSIs)

There were none.

Other interests

There were none.</AI3>

The MDC Board of Directors has submitted reports for consideration by the shareholder board. In respect of each report, the shareholder board is requested to receive the report, provide any feedback to the Managing Director and the Chair of the Board of Directors, provide a steer on any matter arising and request any further information/ reports on matters of interest or concern to the shareholder board. 

Background:

This report set out two reports submitted by the Board of Directors for consideration by the shareholder board. These reports were Non-Executive Directors and Approval to Recruit; and Remuneration Policy.

In respect of each report, the Sub-Committee was requested to receive the report and provide relevant feedback.

There were currently three non-executive directors on the MDC Board. It was recognised that there was a need to strengthen the Board from a finance perspective. A Skills Matrix had been produced and it was proposed that this be circulated to the Sub-Committee for review outside the meeting, under delegated authority. The Sub-Committee’s support to appoint Richard Stephens as a fourth non-executive director was also requested.

The Assistant Director, Legal and Governance advised that the current non-executive directors had been appointed for a period of 12 months, subject to further renewal. Should a fourth non-executive director be appointed, this would be for a period of four years, as this was not an existing appointment which was rolled over.

Reasons:

The Sub-Committee considered the recommendations set out in the report and noted those which were relevant to each report received to make sure that the shareholders views were communicated to the company and that the Council’s objectives for the company were being delivered.

This covering report introduces MDC’s 2024 – 2030 Business Plan (Exempt Appendix 1).

Background:

This report set out that the previous version of the Business Plan had been approved at a Cabinet meeting held on 10 January 2023. The updated Business Plan now being presented covered the period 2024 to 2030 and set out how MDC would deliver its objectives during this period.

The Business Plan reflected market challenges that had been encountered and how these risks had been mitigated to date. The programme outlined was expected to deliver 760 homes, a substantial contribution to Medway’s housing delivery targets.

An Exempt Appendix to the report set out the Business Plan.

Reasons:

In order for the company to fulfil its purpose, a Business Plan proposal is required to set out how the company will achieve its medium-term objectives.

The Business Plan sets out the Company’s medium-term vision and has mitigated risks in response to the current difficult operating environment by acting in an agile way and adapting its sales offer to reflect changing market conditions. 

MDC is contributing to Medway’s housing delivery targets, including Affordable Housing options that can benefit the community. A key part of MDC’s future mitigation strategy is for the company to obtain Homes England “Investment Partner” status, which will allow the company to apply for affordable housing grants and offer Shared Ownership which is outlined in the Business Plan.

This covering report introduces the strategic risk register for MDC Ltd.  The risk register itself is attached as an exempt appendix.

Background:

This report set out the Strategic Risk Register for MDC Ltd. This had been prepared by the company in accordance with the approach and scoring methodology adopted by the Council.

The Risk Register was comprehensive, including closed risks and those being managed under ‘business as usual’, in addition to those which required further management action. The report highlighted three risks, which appeared to be increasing despite management action. The Risk Register was considered by the MDC Board each meeting.

An Exempt Appendix to the report set out the Strategic Risk Register.

Reasons:

In order to fulfil its role as shareholder,on behalf of the Council, the sub-committee must be regularly updated regarding the risks affecting the company and its activity and the action being undertaken to manage those risks.