Issue - decisions

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.