The Council, at its meeting held on 22 September 2016, has agreed the principle of setting up a new wholly owned development company to develop and own homes with the overarching aim of maximising income back to the Council and supports outcomes in the housing strategy.  The proposal outlines the necessary due diligence to explore the objectives listed in paragraph 2.5 to the submitted report and to recommend:

·       The appropriate company structure  and Governance arrangements;

·        Financial modelling and stress tests and flows to council; and

·        Benefits and risks.

That the Memorandum and Articles of Association for the Holding Company, Development Company and Rental Company as set out at Appendix 1 to this record of decision be approved.

To approve the final Memorandum and Articles of Association for the three companies.

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This decision will come into force immediately.

At the Council meeting held on 23 February 2017 the Council agreed the following:

(i)       that Council approves the establishment of the Holding Company as a wholly owned company limited by shares of the Council for all Council wholly owned companies, and delegates to the Director of Adults and Transformation authority to implement this decision, including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(ii)      the Council approves the establishment of a Housing Development Company as a wholly owned subsidiary (company limited by shares) of the Holding Company, and delegates to the Director of Adults and Transformation authority to implement this decision, including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(iii)      the Council approves the establishment of a Housing Rental Company as a wholly owned subsidiary (company limited by shares) of Holding Company, and delegates to the Director of Adults and Transformation authority to implement this decision, Council Thursday, 23 February 2017 including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(iv)     that Council authorise the Director of Adults and Transformation to approve the appointment of any Officer(s) as a director and/or company secretary of the Holding Company and/or either the Development Company or Rental Company during the application to register Holding Company and/or Housing Development Company; and

(v)      that the Housing Company Policy Framework document be presented to Council for consideration in April 2017, together with an outline business case.

In accordance with the decision in (ii) above the Director of Adults and Transformation has finalised the Memorandum and Articles of Association, in consultation with the Group Leaders as attached to this record of decision.

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