Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced a report on the outcome of a review of the end-to-end governance arrangements for the four Council-owned companies of Be First, Reside, Barking and Dagenham Trading Partnership and B&D Energy Ltd.

The Cabinet Member advised that the reviews found no significant concerns regarding the companies’ governance, although there were some recommendations for improvements that reflected the maturing relationship between the Shareholder Panel, which oversees the Council’s interests as shareholder, and the companies.  One of those recommendations related to the non-strategic reserved matters that, currently, required the approval of Cabinet on behalf of the Council.  It was proposed that the Shareholder Panel should have the ability to make recommendations to the Council’s Chief Executive, in line with existing delegated power parameters, to approve non-strategic matters such as minor changes to business plans, changes of companies’ auditors, changes to Shareholder Agreements and the extension of Company Chairs and non-Executive Director appointments.

The Assembly resolved to:

(i)  Endorse the proposal that the Chief Executive, in consultation with the Shareholder Panel, be authorised to agree any non-strategic reserved matters requiring the approval of the Council as Shareholder;

(ii)  Note that all strategic reserved matters shall continue to be the responsibility of the Cabinet on behalf of the Council; and

(iii)  Approve the proposed amendment to the Officer Scheme of Delegation (Part 3, Chapter 1 of the Council’s Constitution) as shown in paragraph 6.1(q) and (r) in Appendix 1 to the report, in order to implement (i) above.

The Cabinet Member for Finance, Performance and Core Services introduced a report on the outcome of a review of the end-to-end governance arrangements for the four Council-owned companies of Be First, Reside, Barking and Dagenham Trading Partnership and B&D Energy Ltd.

The Cabinet Member advised that the reviews found no significant concerns regarding the companies’ governance, although there were some recommendations for improvements that reflected the maturing relationship between the Shareholder Panel, which oversees the Council’s interests as shareholder, and the companies.  One of those recommendations related to the non-strategic reserved matters that, currently, required the approval of Cabinet on behalf of the Council.  It was proposed that the Shareholder Panel should have the ability to make recommendations to the Council’s Chief Executive, in line with existing delegated power parameters, to approve non-strategic matters such as minor changes to business plans, changes of companies’ auditors, changes to Shareholder Agreements and the extension of Company Chairs and non-Executive Director appointments.

Cabinet resolved to:

(i)  Endorse the proposal that the Chief Executive, in consultation with the Shareholder Panel, be authorised to agree any non-strategic reserved matters requiring the approval of the Council as Shareholder;

(ii)  Note that all strategic reserved matters shall continue to be the responsibility of the Cabinet on behalf of the Council; and

(iii)  Recommend the Assembly to approve the proposed amendment to the Officer Scheme of Delegation (Part 3, Chapter 1 of the Council’s Constitution) as shown in paragraph 6.1(q) and (r) in Appendix 1 to the report, in order to implement (i) above.