Issue - meetings

For decision. 

ORDERED that Executive approve the Wholly and Partly Owned Council Companies Policy 2026-29 and supporting Minimum Standard.

The Mayor submitted a report for Executive's consideration. The report sought approval of the Wholly and Partly Owned Council Companies (WPOCC) Policy 2026–29 and supporting Minimum Standard, which established the framework through which the Council would develop, operate and review wholly or partly owned council companies. 

The Executive was advised that the Council had operated a policy governing Wholly and Partly Owned Council Companies since 2023 to support compliance with Chartered Institute of Public Finance and Accountancy (CIPFA) guidance and to ensure appropriate governance arrangements were in place. The report represented the scheduled three-year review of that policy.

Members heard that the policy was intended to strike an appropriate balance between allowing a company sufficient freedom to manage its activities whilst ensuring the Council retained appropriate oversight and assurance. The policy sought to ensure that any company established by the Council contributed towards the achievement of the Council’s ambitions, provided value for money and operated within a robust corporate governance framework.

The Executive noted that the key elements of the policy and supporting Minimum Standard included requirements for a business case to be prepared for all proposed companies, completion of appropriate due diligence to test the robustness of that business case, governance and reporting arrangements capable of providing assurance to the Council, clearly defined roles and responsibilities, and regular formal reviews to assess whether the original business rationale remained valid.

The Executive further noted that, following the review, the policy had been amended to clarify the circumstances in which it would apply. The revised policy stated that it would only apply where the Council’s position within a partly owned company met the Government definition of a Person with Significant Control (PSC). Members were advised that this included circumstances where the Council held more than 25% of shares or voting rights, could appoint or remove a majority of directors, or could otherwise influence or control the company or trust.

It was also noted that, subject to approval, the revised policy would be implemented, and the Council’s existing company arrangement would be reviewed against the new framework and Minimum Standard.

OPTIONS

The Council could have chosen not to have this policy in place, however that was not recommended. A proportionate, consistent approach to the establishment, maintenance and review of such arrangements provided the Council with assurance that Value for Money was being achieved within arrangements that were necessary to achieve its objectives.

ORDERED that Executive approve the Wholly and Partly Owned Council Companies Policy 2026-29 and supporting Minimum Standard.

REASONS

The policy and supporting Minimum Standard provided a consistent standard against which companies could be assessed to provide the organisation with assurance that governance was fit for purpose and the business case for establishment of a company was robust.