Decision details

RESOLVED

      The Council Approved;

1.    That authority be delegated to the Chief Executive in conjunction with the Executive Director Finance and Leader of the Council proceed as a working party to set up a Local Authority Trading Company including finalisation of the legal agreements.  The Council being the sole shareholder. For clarity the Company shall be wholly owned by the Council.

2.    The working party being authorised to carry out all functions necessary for the setting up of the Company including Council approval for the appointment of the initial Directors/Non Executive Director of the Company as identified in the draft business case and to continue to operate the new company thereafter

3.    The alteration of the Constitution to include (i) in part 4 a new paragraph 4.2.29  “consider annual reports form the Council’s Company; (ii) in Article 6 Corporate Scrutiny under Primary scope “The Committee shall bi-annually review and scrutinise matters relating to  the Company’s activities and performance (iii) in Article 9 a new paragraph 2.9.3 (a)(vi) consider on an annual basis the Company’s Code of Practice and Governance Statement.

4.    Creation of a capital budget in the sum of £4m financed from capital receipts from the sale of the land at the former golf course to provide a part loan to the LATC as per the draft Loan Agreement at Appendix C giving the LATC working capital and an ability to purchase land for housing development estimated at 48% of the capital, 52% of which is equity investment.

5.    Disposal at market value of the land at Solway Close to the LATC for housing development purposes

6.    Officers have been using the name “Solway (Tamworth) Limited” as the project name for the company, Council endorsed this