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.

(i)         that the Council establishes the following wholly owned companies, limited by shares:

o   Holding Company;

o   Housing Development Company; and

o   Housing Rental Company; and

(ii)        that Caroline Taylor, Anne-Marie Bond and Martin Phillips be appointed as Directors to the above three companies.

To ensure the Council has the best company structure for the financial management of its Housing Strategy.  Development and rental are two distinct business activities and should be separated.  It is good financial management to form a group of companies for the management of both companies and the transfer of assets and liabilities between the companies.

To formally establish the companies and appoint the Directors.

No alternative options have been considered.

Background information is available at http://www.torbay.gov.uk/DemocraticServices/ieListDocuments.aspx?CId=163&MId=6622&Ver=4

This decision will come into force immediately.

At the Council meeting on the 23 February 2017, Members approved the establishment of the following three companies:

·         Holding Company;

·         Housing Development Company; and

·         Housing Rental Company.

These companies will be wholly owned by the Council and limited by shares.

The Holding Company as the name suggests, will act as a holding company for the Council’s interest in the Housing Development Company.

This decision was delegated to the Director of Adults and Transformation authority to implement.

None