Committee details

The key roles of the Shareholder Committee are to:

1.  Provide a public forum in which the performance of the Company can be highlighted and monitored;

2.  Scrutinise the affairs and performance of the company against any Services Agreement, business plan and budget;

3.  Influence the appointment of directors including pay packages;

4.  Ensure that the business plan of the Company is aligned to the strategic objectives of the Council and communicate to the Board the practical ways in which the Company can contribute to them being attained;

5.  Where appropriate, seek to optimise returns on investment from trading activities whilst ensuring that trading activities are conducted in accordance with the values of the Council;

6.  Report to Executive on strategic matters;

7.  Where appropriate, monitor Teckal compliance at least annually.

Objectives and Terms of Reference

The Shareholder Committee will:

1.  Safeguard the Council’s investment in any Company and ensure the Company contributes to achieving the Council’s strategic objectives and maximise outcomes in line with Council policy;

2.  Receive, review, approve and monitor the Company’s Business Plans and all financial and service performance reports;

3.  Endorse any amendments to a Company’s Business Plans

4.  Appoint and remove Company directors and ensure directors operate in accordance with the Company’s objectives;

5.  Agree the employment of any non-executive or external directors and the basis on which these directors will be remunerated.

6.  Appoint the Company auditors.

7.  Determine the distribution of any surplus or the issue of any dividends from the Company, in accordance with the Shareholder’s Agreement, and exercise any other strategic functions flowing from the Council’s ownership of shares.

8.  Approve the allotment of further shares in a Company (whether to third party shareholders or the Council)

9.  Exercise any reserved powers set out in the Company’s Shareholder Agreement and/or Articles of Association.

10.Consider any recommendation from Company Directors to cease trading.