Agenda item

(a)  That an Asset Management Company be developed, limited by shares and wholly owned by the Council, to acquire own and manage and dispose of strategic assets located inside and outside Slough when the Council is borrowing funds to acquire the assets.

(b)  That the proposed governance arrangements for the Asset Management Company including the Shareholder Agreement set out in Appendix Two to the report be approved.

(c)  That the Head of Legal Services, following consultation with the Commissioner for Housing & Urban Renewal and the Leader of the Council be delegated authority to develop Articles of Association and incorporate the Asset Management Company based on the content of this document and; 

(d)  That Joe Carter, Assistant Director Assets, infrastructure & Regeneration be appointed as the founding director of the company in order to enable the company to be registered (as this requires at least one named director) and basics to be established (such as setting up banking arrangements).

(e)  That the Head of Legal Services, following consultation with the Commissioner for Housing and Urban Renewal and the Strategic Director Housing, Regeneration & Resources, be authorised to commence the incorporation of the Asset Management Company, select the company name in order to do so (which will be subject to availability at Companies House) and complete all necessary documentation as set out the report. 

(f)  That the Assistant Director of Finance & Audit be delegated authority to develop the draft Heads of Terms for the Facility Agreement for the Council to provide loan and equity finance to the Asset Management company and following consultation with the Leader, be authorised to finalise the Facility Agreement and to enable all amounts agreed by full Council to be lent to the Asset Management Company.

(g)  That the Assistant Director of Finance & Audit be responsible for the Council’s Shareholder function.

(h)  That the Assistant Director Finance & Audit be authorised to agree prices for services provided by the Council (such as Asset Management and Finance), between the Council and the Asset Management company. 

(i)  That the request to provide an overdraft facility of £50,000 to establish the company, which will be repaid in 18 months from the company going operational, be approved.

The Commissioner for Housing & Urban Renewal introduced a report that sought approval to introduce a wholly owned Asset Management company to acquire, own and manage certain assets as part of the Council’s strategic acquisitions programme.

The Commissioner proposed a change to recommendation (a) to the report to clarify that the company would, if approved, own, manage and dispose of strategic assets in circumstances where the Council would borrow funds to acquire the asset whether it was located inside or outside of Slough.  The Cabinet noted the legal and technical reasons for the establishment of a company, and also noted Part II Appendices One, Two and Three without disclosing any of the exempt information.

Speaking under Rule 30, Councillor Amarpreet Dhaliwal asked about the governance arrangements and the shareholder role; and Councillor Swindlehurst raised the issue of lending to the company and links to the Council’s Medium Term Financial Strategy.

The Cabinet agreed the recommendations to establish the company, including the change to recommendation (a) to clarify that company would used where the Council was borrowing funds.

Resolved –

(a)  That an Asset Management Company be developed, limited by shares and wholly owned by the Council, to acquire own and manage and dispose of strategic assets located inside and outside Slough when the Council is borrowing funds to acquire the assets.

(b)  That the proposed governance arrangements for the Asset Management Company including the Shareholder Agreement set out in Appendix Two to the report be approved.

(c)  That the Head of Legal Services, following consultation with the Commissioner for Housing & Urban Renewal and the Leader of the Council be delegated authority to develop Articles of Association and incorporate the Asset Management Company based on the content of this document and; 

(d)  That Joe Carter, Assistant Director Assets, infrastructure & Regeneration be appointed as the founding director of the company in order to enable the company to be registered (as this requires at least one named director) and basics to be established (such as setting up banking arrangements).

(e)  That the Head of Legal Services, following consultation with the Commissioner for Housing and Urban Renewal and the Strategic Director Housing, Regeneration & Resources, be authorised to commence the incorporation of the Asset Management Company, select the company name in order to do so (which will be subject to availability at Companies House) and complete all necessary documentation as set out the report. 

(f)  That the Assistant Director of Finance & Audit be delegated authority to develop the draft Heads of Terms for the Facility Agreement for the Council to provide loan and equity finance to the Asset Management company and following consultation with the Leader, be authorised to finalise the Facility Agreement and to enable all amounts agreed by full Council to be lent to the Asset Management Company.

(g)  That the Assistant Director of Finance & Audit be responsible for the Council’s Shareholder function.

(h)  That the Assistant Director Finance & Audit be authorised to agree prices for services provided by the Council (such as Asset Management and Finance), between the Council and the Asset Management company. 

(i)  That the request to provide an overdraft facility of £50,000 to establish the company, which will be repaid in 18 months from the company going operational, be approved.