Issue - meetings

Meeting: 21/01/2019 - Cabinet (Item 65)

65 Housing Company pdf icon PDF 128 KB

Key Decision

 

Portfolio Holder: Cabinet Member (Outward), Councillor John Wilmott

Additional documents:

Decision:

a)    that the necessary authority be delegated to the Director of Housing and Assets and Director of Legal and Governance to take the necessary steps to incorporate a company limited by shares for the purposes of housing delivery within Ashfield and surrounding area.

 

a)    that authority be delegated to the Leader of the Council in conjunction with the Chief Executive to name the limited company.

 

b)    that authority be delegated to the Director of Legal and Governance, in consultation with the relevant Portfolio Holder, to produce the Memorandum and Articles for the Housing Company and the Shareholder Agreement.

 

c)    that any officer or Member appointed as Directors of the Company be indemnified.

 

d)    that the Company obtains suitable insurance cover for its Directors.

 

REASON FOR DECISIONS

 

To enable the further work that is required to finalise the company structure and its constitution before the Company is established. The company shall not be named until such time as registration/incorporation is imminent.

 

ALTERNATIVE OPTIONS CONSIDERED AND REASONS FOR REJECTION

 

The alternative option of not forming a Housing Company was not recommended as while the Council does not need to form a Housing Company at this juncture the decision to progress with the formation of the company at this point in time is to capitalise on investigative work already undertaken in this area and the relative low cost of incorporating a shell company for potential future use. It also means the company is already set up should the need for urgent company intervention, action or opportunity is required e.g. the rescue of a stalled building development and/or a commercial opportunity to buy a medium to large rental portfolio within the District.

 

Minutes:

The Director of Housing and Assets submitted a report seeking approval to commence the establishment and incorporation of a limited company for the purposes of market housing delivery and rental within Ashfield District and surrounding areas. The report stated that the company would be set up wholly on the basis to be a commercial entity and return capital and revenue funding to the Council to support the delivery of Council services. It was noted that the proposed company would have no involvement with social or affordable housing and would be a totally different entity to the Council’s former Arm’s Length Management Organisation (Ashfield Homes Limited). A full draft business case was attached as an appendix to the officer’s report.

 

The Leader welcomed the proposed Housing Company and noted that it had the potential to generate revenue which would enable the Council to continue to deliver high quality frontline services to residents.

 

RESOLVED

 

a)    that the necessary authority be delegated to the Director of Housing and Assets and Director of Legal and Governance to take the necessary steps to incorporate a company limited by shares for the purposes of housing delivery within Ashfield and surrounding area.

 

a)    that authority be delegated to the Leader of the Council in conjunction with the Chief Executive to name the limited company.

 

b)    that authority be delegated to the Director of Legal and Governance, in consultation with the relevant Portfolio Holder, to produce the Memorandum and Articles for the Housing Company and the Shareholder Agreement.

 

c)    that any officer or Member appointed as Directors of the Company be indemnified.

 

d)    that the Company obtains suitable insurance cover for its Directors.

 

REASON FOR DECISIONS

 

To enable the further work that is required to finalise the company structure and its constitution before the Company is established. The company shall not be named until such time as registration/incorporation is imminent.

 

ALTERNATIVE OPTIONS CONSIDERED AND REASONS FOR REJECTION

 

The alternative option of not forming a Housing Company was not recommended as while the Council does not need to form a Housing Company at this juncture the decision to progress with the formation of the company at this point in time is to capitalise on investigative work already undertaken in this area and the relative low cost of incorporating a shell company for potential future use. It also means the company is already set up should the need for urgent company intervention, action or opportunity be required e.g. the rescue of a stalled building development and/or a commercial opportunity to buy a medium to large rental portfolio within the District.