Report of the Group Head of Democracy and Governance

Cabinet received a report of the Group Head of Democracy and Governance and Executive Head of Commercial Finance and Innovation which sought approval for a Shareholder Board that would have oversight of the operation of the council’s companies and joint ventures.

The Mayor explained that this report was being presented following a discussion about the number of companies the council had.  He advised that the proposed Shareholder Board would have no decision making powers but would make recommendations to Cabinet.  The report also contained details of officers appointed to the director positions of each company and some changes that were required.

Councillor Watkin added that the final report on the agenda regarding Watford Commercial Services had some ambitious plans.  The Shareholders Board would be able to monitor the companies and proposed developments.

Councillor Johnson advised that this had been noted at Property Investment Board and that political oversight was required.  There needed to be more visibility, and the proposed structure would ensure greater oversight of the companies.  It was important to ensure that the decisions reflected the direction of travel the shareholders/members required.

The Group Head of Democracy and Governance confirmed that the Shareholder Board would provide more oversight and would be able to provide direction to the council’s directors on the companies.  Training would be provided to those councillors who were members of the Shareholder Board and officers appointed as directors to ensure roles and responsibilities were understood.  She asked Cabinet to confirm the names of the members who would be appointed to the Shareholder Board.

The Mayor advised that he proposed the three members would be him, as Mayor, Councillor Watkin, who was responsible for Finance, and Councillor Johnson who was responsible for property-related matters and housing.

Councillor Bell noted this was a very complex matter.  He commented that the opposition members were not included, it would be useful if the minutes could be shared.  He enquired whether outside legal advice and best practice had been taken into account.

The Group Head of Democracy and Governance responded that the Executive Head of Commercial Finance and Innovation had brought knowledge from her previous employment.  External training had also been provided to senior officers. 

The Managing Director confirmed that the proposed modelling reflected best practice.  It would ensure enhanced member engagement.

Following a comment from Councillor Bell the Mayor confirmed that no councillors were members of the company boards.  The Group Head of Democracy and Governance added that this was an executive function as set out in the council’s constitution.  Cabinet was the shareholder and therefore members of the Shareholder Board had to be members of Cabinet.  Advice had been taken and confirmed that officers were directors on the company boards and members had a separate role as shareholders.

Councillor Johnson suggested that if opposition members wished to find out information they should contact officers.  If there was a relevant Shadow Portfolio Holder, then he would be happy to discuss the situation with them.

The Mayor stated that this report was about members’ oversight of the council’s companies and ensured accountability was more straightforward.

RESOLVED –

1.         that a Shareholder Board be established with the terms of reference set out in Appendix to the report.  The Shareholder Board to comprise the Mayor, Councillor Watkin and Councillor Johnson.

2.         that the membership of the companies / joint ventures be agreed as set out in the report at paragraph 4.8.