Issue - meetings

Report of the Head of Commissioning Support and Business Intelligence

The Cabinet considered the report of the Head of Commissioning Support and Business Intelligence which provided an update on the Local Authority Controlled Company – Sefton New Directions

Decision Made: That

(1)       the report be noted;

(2)       an annual Shareholder report be provided to Cabinet;

(3)       the Council’s commitment to continue to contract with Sefton New Directions for a further 24 month period to 31 March 2019 be re-affirmed;

(4)       a review of the contractual arrangements and governance of the company be undertaken and reported back to Cabinet in due course;

(5)       the ongoing review of the service specifications be noted; and

(6)       the Board of Sefton New Directions be requested to submit a report to the Cabinet on the use of surpluses identified, including the possibility of the payment of a dividend to the Council.

Reasons for Decision:

The Council was the sole shareholder in Sefton New Directions as it is a local authority controlled company established under the Local Government and Housing Act 1989.

Cabinet is authorised through the terms of delegation contained in the Constitution (Chapter 5, Paragraph 59) to take all necessary steps to manage and safeguard any shareholding the Council owns in a company. To improve the Council’s governance of its shareholdings and oversight of the activities of the local authority controlled company it was recommended that reports of this nature be received by Cabinet.

Alternative Options Considered and Rejected:

It was an option to not bring a Shareholder Report to Cabinet as there was no explicit requirement to do so. This option was rejected as it was considered that receipt of such a report by Cabinet would improve the Council’s governance of its shareholdings and oversight of the activities of the local authority controlled company.