Decision details

Purpose of Report: As the Council develops proposals to deliver its budget over the coming years, it is considering opportunities presented by trading some of its activities through external trading companies. This report sets out proposals to create a governance structure to oversee the activity of its current and future external bodies in which the Council has a commercial interest.

The Executive is asked to agree the recommendations as outlined in the report.

Resolved: That Executive agree:

(i)           To establish a single member decision making committee to act as shareholder and oversee the business of all Council trading companies (The Shareholder Committee) composed of a minimum of 2 Executive Members.

(ii)          To the terms of reference and the roles and responsibilities of The Shareholder Committee as set out in the report.

(iii)        That the Chief Executive in consultation with the Leader and Deputy Leader determine and publish within the framework approved by the Executive, initial delegations on a company by company basis to The Shareholder Committee if separate from the Executive and subsequent officer delegations. These delegations to be reviewed from time to time with the Council’s broader scheme of delegations.

(iv)        That following approval of the above recommendations, the existing shareholder arrangements cease upon creation of The Shareholder Committee.

(v)         To note the conflicts of interest that Directors can be subject to as identified in paragraph 9 of the report and that these will continue to be considered in the approach to the selection of Directors.

(vi)        That the practice to provide briefings to newly appointed Directors on their role and, in particular, on managing conflicts of interest is made a formal requirement for all future appointees to attend.

(vii)      To consider and give effect to the recommendations of the existing City of York Trading Shareholder Group in relation to the recruitment proposals for a Managing Director for City of York Trading Ltd and approve the proposed role description and salary, together with the revised structure of the City of York Trading Ltd Board itself.

Reason:   (i)&(ii)To ensure effective governance of trading company activity.

       (iii)       To give effect to the Governance principles agreed by Executive.

      (iv)        To remove existing shareholder arrangements.

  (v)         To ensure the principals of good governance principals are reflected in the Council appointments process.

  (vi)        To ensure that Directors are conversant with their multiple statutory responsibilities.

(vii)          In order to comply with decision making arrangements relating to the business of the shareholder group.