Issue - meetings

HERTFORDSHIRE BUILDING CONTROL - AMENDMENTS TO SHAREHOLDER AGREEMENT

Meeting: 21/07/2023 - Cabinet Sub-Committee (Local Authority Trading Companies' Shareholder) (Item 41)

41 HERTFORDSHIRE BUILDING CONTROL - AMENDMENTS TO SHAREHOLDER AGREEMENT PDF 255 KB

REPORT OF THE SERVICE DIRECTOR – REGULATORY

To seek approval from the Cabinet Sub-Committee acting as the Council’s shareholder representative in the Hertfordshire Building Control Consortium of companies, for the amendments to the Shareholder Agreement and authority to the Service Director for Legal & Community to execute the amended Agreement.

Decision:

RESOLVED: That the Cabinet Sub-Committee considered the contents of the report and having done so:

(1) Agreed to the proposed amendments to the Shareholder Agreement.

(2) Delegated any action required to complete the proposed amendments to the Shareholder Agreements, to the Service Directors for Regulatory and Legal and Community on behalf of the Council as shareholder.

(3) Authorised the Service Director – Legal and Community to execute the final amended Shareholder Agreement.

REASON FOR DECISION: To enable the Council to deliver its building control service in an effective and efficient manner.

Minutes:

Audio recording – 2 minutes 13 seconds

The Service Director – Regulatory presented the report entitled ‘Hertfordshire Building Control – Amendments to Shareholder Agreement’, provided an overview of the background to the Cabinet Sub-Committee, and advised that:

· Whilst the shareholder representatives were reviewing the Inter-Authority Agreement and the Service Agreement, it made sense to also include a review of the Shareholder Agreement, which was completed alongside external legal advisors from Trowers and Hamlins LLP.

· From this review there were several changes proposed to be in line with best practice, and a number of areas which could work better.

· Point 8.3 of the report detailed where a unanimous decision of the shareholders was required, with minimal update to this.

· Point 8.4 of the report detailed where a 75% decision of the shareholders was required.

· In addition, there were two new proposals made; a simple majority shareholder decision which would be applied to the paying of dividends, as well as the dismissal of a director for any reason.

· The other new proposal was for a board decision to be included, which would oversee the appointment of specialist consultant. Currently the decision is with the Sub-Committee with no delegated powers, so this would expedite appointments of consultants.

In response to questions from Councillors, the Service Director – Regulatory advised that it was felt that the £50k was a sensible amount of remuneration for consultants to be approved by the Board.

The Service Director – Legal and Community advised that a decision was required today and questioned what further would be achieved by circulating the amended agreement. In response to a question from Councillor Keith Hoskins, the Service Director confirmed that this had been reviewed by other Legal Officers at partner authorities, although some had different ways of approving the decision.

The Chair moved the item to a vote, and it was: