Issue - meetings

To receive the Companies Performance Update – Summer 2023 report on the performance of Council-owned companies.

RESOLVED – that the Partner, Shareholder and Trustee Executive Sub-Committee:

(i) To note the Companies Performance Update, as set out in the report, and to consider any observations from the Overview and Scrutiny Committee.

Councillor A. King, Executive Member for Commercial and Community Assets explained that this report was the Summer 2023 update on the performance of Council owned companies.

The report provided an overview of the performance of those companies currently owned, or part-owned, by the Council.

As set out in the report, the Council currently has ownership of Greensand Holdings Limited and part ownership of Horley Business Park Development LLP and Pathway for Care Limited.

Of these, Greensand Holdings Limited and Horley Business Park Development LLP were expected to be dissolved in the future, once current affairs were properly managed and the Settlement Agreement between members of the LLP had been completed.

Regarding Pathway for Care, the Council was continuing to seek critical business information from the company as a minority shareholder, including with regard to the redemption of the Council’s preference shares, which the company had not yet honoured.

Some information regarding companies was provided in a confidential annex to the report and related points were considered during the exempt part of the meeting.

The report was previously considered by the Overview and Scrutiny Committee on 6 July 2023. The Committee made a number of observations regarding the following points, which the Sub-Committee was asked to consider in reviewing this report:

·         Fully understanding and reporting on past actions and taking the opportunity to review and learn lessons from the past;

·         That members and officers were fully aware of the risks and costs to the public purse through making investments; and

·         To ensure that opportunities were well founded and supported by appropriate advice.

Having considered the report and the observations of the Overview and Scrutiny Committee it was RESOLVED – that the Partner, Shareholder and Trustee Executive Sub-Committee:

(i) notes the Companies Performance Update, as set out in the report, and to consider any observations from the Overview and Scrutiny Committee.

To receive an update on the performance of Council owned companies.

RECOMMENDED that Overview and Scrutiny Committee:

Notes the Companies Performance Update, as set out in the report, and makes any observations for consideration by the Partner, Shareholder and Trustee Executive Sub-Committee.

Councillor Andrew King, the Executive Member for Commercial and Community Assets, introduced the Companies Performance Update Summer 2023 report.

This report is the Summer 2023 update on the performance of Council owned companies and provides an overview for those companies currently owned, or part-owned, by the Council.

The performance of the companies is overseen by the Partner, Shareholder and Trustee Executive Sub-Committee, who will also be considering this report at their meeting on 13 July.

As set out in the report, the Council currently has ownership of Greensand Holdings Limited and part ownership of Horley Business Park Development LLP and Pathway for Care Limited.

Of these, Horley Business Park Development LLP is expected to be dissolved in the near future, once the Settlement Agreement between members of the LLP has been completed. It will then be possible to determine future plans for Greensand Holdings Limited.

Regarding Pathway for Care, the Council, as a minority shareholder, is continuing to seek critical business information from the company, including with regard to the redemption of the Council’s preference shares, which the company has not yet honoured.

Some information regarding companies is provided in a confidential annex to the report; whilst the Council has attempted to be as open as possible with this information, some elements relate to ongoing financial and business affairs which are not appropriate to publish at this time.

The Executive Member for Commercial and Community Assets invited any comments or questions from Overview & Scrutiny Members.

The following clarifications were provided:

Horley Business Park LLP

It was clarified that the terms of the settlement agreement had been agreed, but that signature of the settlement deed was in the process of being finalised.

This item was discussed more fully during the exempt part of the meeting due to the confidential nature of the parts of the discussion held.

RESOLVED that the Committee:

Noted the Companies Performance Update - Summer 2023, as set out in the report to the Committee and made observations for the consideration by the Partner, Shareholder and Trustee Executive Sub-Committee.