Decision details

To approve the creation of a Local Authority Trading Company to undertake an identified commercial opportunity with local authority partners

Part 2

RESOLVED:

1.         That the business case for the creation of a Local Authority Trading Company to be owned by Surrey County Council and five other local authorities be approved.

2.         That the governance arrangements for the Company, as set out in paragraphs 13 to 17 of the submitted report, and as described in memorandum of terms form in a Shareholders Agreement between the local authorities and the Articles of Association for the company be approved.

3.         That the provision of equity finance to the Company, as described in paragraphs 29 to 31 of the submitted report, be approved.

4.       That the Cabinet Member for Business Services and New Models of Delivery and the Strategic Director for Business Services be authorised to agree appropriate contractual arrangements on behalf of the County Council following completion of appropriate due diligence.

Reasons for Decisions:

The creation of a Local Authority Trading Company, to be owned by six local authorities, will ensure that the commercial activities of the consortium are delivered in an appropriate manner and will enable the growth potential of the database to be fully exploited.  Subject to the company being able to declare a dividend, the recommended delivery model will produce an ongoing income for the council to support future service provision.