Decision details

Sutton Education Services Limited - Launch update & resolutions agreement

Decision Maker: Sutton Shareholdings Board

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Update on the launch of the new service

Decisions:

The Head of Strategic Business presented the report.

 

Members commented on the numbering of the Article of Associations, Officers confirmed there was an error which would be corrected and that all the relevant information was included in the appendix.

 

Members questioned why savings in ‘back-office’ costs might not be achievable. Officers explained this was affected by assumptions made regarding central support costs from the Council and that how these costs were applied was more of an issue for Standing Committees. In response Members requested that reports brought to the committee focus more on the operation of the respective company.

 

Members highlighted that the role of the company was to provide services, previously the responsibility of the Council, in a different way and sought clarification on what would happen if the company was not viable. Officers advised that the company expected to break even by year two. The company provided both discretionary and statutory education services. The majority of income would come from central and local authority funding for educational services and it was expected that the deficit would be addressed by delivering more traded services by year two.

 

It was requested that the final Articles, along with memorandum of understanding and and shareholder agreement be circulated to members of the committee.

 

As details of the Director appointments had not been circulated to members in advance of the meeting recommendation 2.1 was amended to delegate their appointment to the Council’s Authorised Officer in consultation with the relevant lead members.

 

Resolved

 

  1. That the Sutton Education Services Ltd Articles of Association as set out at Appendix B to the report be approved.

 

  1. That authority be delegated to the Council’s Authorised Officer (Kieran Holliday) to appoint   the Directors that have been selected and recommended to date in consultation with the Chairs of Sutton Shareholdings Board and Children, Families and Education Committee.

 

  1. That authority be delegated to the Council’s Authorised Officer (Kieran Holliday) to appoint the Chair on the timeline set out above (in consultation with the Chairs of the Sutton Shareholdings Board and Children, Families and Education Committee).

 

Report author: Tom Alexander

Publication date: 16/01/2017

Date of decision: 04/01/2017

Decided at meeting: 04/01/2017 - Sutton Shareholdings Board

Accompanying Documents: