Decision details

That (A) the strategic and financial business case (presented in paragraphs 1.10 – 1.21 of the report submitted) for the proposed Property Investment Company be approved;

(B)     the Memorandum and Articles of Association, appended in draft form to the report submitted, be approved in principle with final approval delegated to the Executive Member for Finance and Support Services acting in consultation with the Head of Housing and Health and Head of Legal and Democratic Services;

(C)    the Shareholder Agreement, appended in draft form to the report submitted, be approved in principle with final approval delegated to the Executive Member for Finance and Support Service acting in consultation with the Head of Housing and Health and Head of Legal and Democratic Services;

(D)    the Property Investment Company, to be called Millstream Property Investments Limited, be incorporated as a company limited by shares wholly owned by East Herts Council;

(E)     authority to complete and submit the necessary documentation for incorporation be delegated to the Head of Legal and Democratic Services;

(F)     East Herts Council’s full Council assumes the role of Shareholder of the company;

(G)    authority to determine a Shareholder representative to attend general meetings or enter into communication with the company in place of such meetings be delegated to the Leader of East Herts Council;

(H)    a Shareholder Advisory Group of three elected Members of East Herts Council be established with the purpose of advising the Council when exercising its role as Shareholder, with advice provided by senior officers of the Council;

(I)      the identification of members of the Shareholder Advisory Group be delegated to the Leader of East Herts Council;

(J)     the composition of the company’s Board of Directors to be, in the first instance, three Core Directors who shall be officers of East Herts Council, with up to an additional three directors appointed at any time in the future as Independent Directors selected for their relevant expertise and experience;

(K)     authority to nominate the Core Directors be delegated to the Leader of East Herts Council acting in consultation with the Chief Executive;

(L)     authority to nominate the Independent Directors be reserved by full Council acting in its role as Shareholder; and

(M)    the key outputs of latest draft initial 30 year business plan, covering the purchase and management of the Council’s existing five residential properties, included in Essential Reference Paper ‘D’ of the report submitted, be noted.