Agenda, decisions and minutes

In accordance with the Councillors’ Code of Conduct, a councillor is required to disclose at the meeting any disclosable pecuniary interest (DPI) that they may have in respect of any matter for consideration on this agenda.  Any councillor with a DPI must notparticipate in any discussion or vote regarding that matter and they must also withdraw from the meeting immediately before consideration of the matter.

If that DPI has not been registered, the councillor must notify the Monitoring Officer of the details of the DPI within 28 days of the date of the meeting.

Councillors are further invited to disclose any non-pecuniary interest which may be relevant to any matter on this agenda, in the interests of transparency, and to confirm that it will not affect their objectivity in relation to that matter.

To confirm the minutes of the meeting of the Committee held on 4 January 2022 as a correct record.

The minutes of the meeting held on 4^th January 2022 were confirmed as a correct record. The Chairman signed the minutes.

The minutes of the meeting held on 4^th January 2022 were confirmed as a correct record. The Chairman signed the minutes.

Decision:

1.    To approve the increase in the 25-year secure variable loan to NDHL to £15.18million. 

2.    To approve the investment of £9.22million in equity shares in GBCH, to be drawn down alongside the loan to NDHL, of which £7,786,408 has already been invested.

3.    To request that GBCH corrects the position in relation to the shares issued to the Council and the shareholdings in NDHL to address the issues as set out in paragraph 4 of this report.

4.    To request an updated Business Plan from NDHL to cover future funding.

Reason(s):

To fulfil the Council’s corporate governance duties in respect of its subsidiary company.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted

None.

North Downs Housing Limited (NDHL) was the wholly owned housing company established by the council in 2016, together with its parent company Guildford Borough Council Holdings Limited (GBCH).  The council was the sole shareholder in GBCH and the company was funded by the grant of a 25-year secure variable rate loan of £1.44 million and the investment of £0.96 million in equity shares to be drawn down alongside the loan. On 18 July 2017, the Executive approved the business plan for NDHL and the investment of £22 million on a 60/40 loan/equity investment split.

Over time the company had grown and it had become necessary to review the funding arrangements. It was also necessary to request an updated business plan from NDHL in order to understand future funding requirements. The committee considered a report providing a summary of progress to date and which sought a variation to the financing arrangement originally proposed. There were no financial implications for the council as the budgets had already been approved.

The committee was in agreement with the proposals and consequently,

RESOLVED:

1.      To approve the increase in the 25-year secure variable loan to NDHL to £15.18million. 

2.      To approve the investment of £9.22million in equity shares in GBCH, to be drawn down alongside the loan to NDHL, of which £7,786,408 has already been invested.

3.      To request that GBCH corrects the position in relation to the shares issued to the Council and the shareholdings in NDHL to address the issues as set out in paragraph 4 of the report.

4.      To request an updated Business Plan from NDHL to cover future funding.

Reason:

To fulfil the Council’s corporate governance duties in respect of its subsidiary company.