Decision Maker: Sutton Shareholdings Board
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Update on the launch of the new
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.
Report author: Tom Alexander
Publication date: 16/01/2017
Date of decision: 04/01/2017
Decided at meeting: 04/01/2017 - Sutton Shareholdings Board