Issue - meetings

As detailed in the recommendations.

The Cabinet Member for Housing introduced the report which highlighted the legal and governance issues around the establishment of the proposed housing company and sought approval of its creation.

During its early years the company would be expected to own and let its own properties, lease and sub let properties and let and manage properties on behalf of private landlords.

The Head of Legal and Democratic Services explained that it was appropriate that the level of Council control should be very high, at least during the company’s early years, which would mean it would be subject to a high level of regulation.

The Council would be able to exercise control over the company through ownership of shares and control of the board of directors.  The right to cast the Council’s vote as shareholder should be exercised by the Cabinet Member for Housing which would ensure that key decisions would be taken in accordance with the wishes of the Cabinet.  The board would be limited to five or seven positions with the majority being held by Councillors. 

The company would buy any services it required from the Council with Council employees remaining employed by the Council but able to undertake functions on behalf of the company with that being built into their job descriptions.

At the recent Housing Overview and Scrutiny Committee, the report was fully supported.  Quarterly reports were requested through the regular performance monitoring mechanism, with additional reports if required.

Additional comments were that if in the future the company wanted to borrow money or may ask the Council to stand as guarantor, that Overview and Scrutiny be consulted and have full involvement throughout.

In response to a question on the company potentially borrowing money from the Council, the Head of Finance explained that research was currently being undertaken to establish the process followed by other Local Authorities. 

Members welcomed the report and expressed their thanks to all of the officers and Members involved.

            RESOLVED:

(a)       That the housing company is established as a company limited by shares as set out in the report on the basis that the Council is assured of having a sufficient level of control of the body;

(b)       That the Chief Executive, Head of Legal and Democratic Services, Head of Finance and Head of Housing in consultation with the Leader and Cabinet Member for Housing be given delegated authority to take all necessary steps to establish the company; and

(c)        That the Chief Executive in consultation with the Leader and Cabinet Member for Housing be given delegated authority to approve the business plan.