Issue - meetings

Councillor Harvey

To consider a report on the relationship between the Council and Knowle Green Estates Ltd.

Reason for exemption

This report contains exempt information within the meaning of paragraph 3 of Schedule 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006): Information relating to the financial or business affairs of any particular person (including the authority holding that information)  

and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information because disclosure to the public of the terms would prejudice the authority in those or any other negotiations concerning property, goods or services.

Cabinet considered a report on Knowle Green Estates Ltd.

The report explained that the Company has been set up in part as a response to the challenge the Council faces to substitute the removal of the Revenue Support Grant by 2017/18 and to address emergency and affordable accommodation pressures both in terms of supply and impact on the Revenue Budget.

Resolved to:

1.    Note the incorporation and initial activities of Knowle Green Estates Ltd (“the Company”), as described in this report;

2.    Note progress towards the first business plan;

3.    Exercise the Shareholder function of the Council at Cabinet;

4.    Exercise the Council’s shareholder rights to pass a special resolution of the Company to adopt the revised Articles of Association;

5.    Delegate Reserved Matters under the Shareholder Agreement to the Leader of the Council, and where the Leader deems the matter of controversy or requiring further discussion, he may ask Cabinet to deal with the Reserved Matter;

6.    Authorise the Head of Corporate Governance to finalise and document the following arrangements between the Council and the Company:

a.   The draft Shareholder Agreement

b.   The draft Loan and Drawdown Agreement

c.   The draft Resourcing Agreement for the Company to use Council staff and facilities in furtherance of its business

Reason for the decision:

To document the relationship between the Council and the Company and to provide a source of funds to the Company so that it can undertake various projects for the Council which will help achieve the Council’s Corporate Plan objectives of (a) providing another source of income for the Council and (b) providing more housing in the Borough.