Agenda, decisions and minutes

Commercial Ventures Executive Sub-Committee - Thursday, 27th February, 2020 6.30 pm, NEW

Venue: Executive Meeting Room - Town Hall. View directions

Contact: Democratic Services (01737 276182)  Email: Democratic@reigate-banstead.gov.uk

Items
No. Item

83.

Minutes of the previous meeting pdf icon PDF 70 KB

To approve the minutes of the previous meeting as a correct record.

Minutes:

RESOLVED to approve the minutes of the meeting held on 30 January 2020 as a correct record.

84.

Apologies for absence

To receive any apologies for absence.

Minutes:

Apologies for absence were received from Councillor T Archer.

85.

Declarations of interest

To receive any declarations of interest.

Minutes:

There were no declarations of interest.

86.

RBBC Limited dissolution pdf icon PDF 130 KB

To consider the dissolution of RBBC Limited and expenses write off.

Additional documents:

Minutes:

Councillor T Schofield presented the RBBC Limited dissolution report and informed the Committee that RBBC Limited was incorporated for the purpose of temporarily acquiring a digital monitoring business whilst securing an investor for this business. It was never the Council’s intention to diversify and operate this type of business, but an investor was not secured and in November 2018 the Executive noted the plan to close the company.

The assets which were transferred from Pathway for Care Limited to RBBC Limited on the transfer of the digital monitoring business were discussed and it was confirmed that these had been written off in the accounts and investigations would be carried out to establish their location. 

The Chief Finance Officer and the Democratic Services Officer were thanked for their work in respect of the dissolution of RBBC Limited.

It was RECOMMENDED that:

i)             the Chief Finance Officer be authorised to not recover the £29,434.98 expenses that have been incurred on behalf of RBBC Limited and treat them as a charge to the Council’s revenue budget in 2019/20, and confirm in writing to the Director of RBBC Limited that the Council will not seek to recover any liabilities;

ii)            the Director of RBBC Limited be authorised to arrange for RBBC Limited to be dissolved; and

iii)           in its capacity as the Council’s shareholder representative for RBBC Limited, note the dissolution of RBBC Limited.

RESOLVED:

i)          the Chief Finance Officer was authorised to not recover the £29,434.98 expenses that have been incurred on behalf of RBBC Limited and treat them as a charge to the Council’s revenue budget in 2019/20 and the Chief Finance Officer was authorised to confirm in writing to the Director of RBBC Limited that the Council will not seek to recover any liabilities;

ii)      the Director of RBBC Limited was authorised to arrange for RBBC Limited to be dissolved; and

iii)        in its capacity as the Council’s shareholder representative for RBBC Limited, noted the dissolution of RBBC Limited.

 

Reason for decision: RBBC Limited was incorporated for the purpose of temporarily acquiring a digital monitoring business whilst securing an investor for this business.  It was never the Council’s intention to diversify and operate this type of business, rather it was a vehicle to secure a buyer for this element of the Council’s previous investment in Pathway for Care.

An investor was not secured and in November 2018 Executive received a report that included an update on plans to close the company.  The actions necessary to implement Executive’s decision were now complete and it was recommended to the Commercial Ventures Executive Sub-Committee that RBBC Limited be dissolved and its remaining liabilities written off and avoid an insolvent liquidation. 

Writing off the liabilities and dissolving RBBC Limited was considered to be the most appropriate course of action to ensure the liabilities did not increase and the Council did not continue to maintain a company that could not meet its financial obligations and the costs had to be acknowledged in the Council’s  ...  view the full minutes text for item 86.

87.

Any other business

To consider any other urgent business.

Minutes:

None.