MAIDSTONE BOROUGH COUNCIL

LEADER OF THE COUNCIL

REPORT OF THE DEMOCRATIC SERVICES MANAGER

Report prepared by Janet Barnes

Date Issued: 14 October 2009                         

1.           SEERA LIMITED

1.1        Issue for Decision

1.1.1   To consider joining SEERA Limited.

1.2        Recommendation of the Democratic Services Manager

1.2.1   That the Council joins SEERA Limited at a membership cost of £1. 

1.3        Reasons for Recommendation

1.3.1   The Council joined South East England Councils (“SEEC”) earlier this year following the Government’s Sub National Review of Economic Development and Regeneration.  SEEC have now invited the Council to join SEERA Limited (a copy of letter of invitation is attached at Appendix A).

1.3.2   SEERA Limited was originally set up to manage the finances of the Regional Assembly, but it is now wholly owned by local authorities in the South East and the link with the Assembly was removed last year.

1.3.3   SEERA Limited holds substantial reserves which can be used ‘to promote the economic, social and environmental well-being of all who live and work in the South East of England’ and is currently the ‘accountable body’ for the funding received from the Department of Communities and Local Government (“CLG”) to cover the cost of work.

1.3.4   SEERA Limited is a company which is limited by guarantee and the maximum liability of any local authority is £1 – the cost of membership.

1.3.5   The Articles of Association (attached at Appendix B) have been revised to increase the number of Directors to six with effect from the Annual General Meeting (“AGM”) on 16 October 2009.

1.4        Alternative Action and why not Recommended

1.4.1   The Council could decide not to join SEERA Limited.  This is not recommended as the Council would not be represented and we would therefore not have the opportunity to put across the views of this Council.

1.5        Impact on Corporate Objectives

1.5.1   There is no impact on corporate objectives.

1.6        Risk Management

1.6.1   The risks are minimal as the maximum liability of the authority is £1.

1.7        Other Implications

1.7.1    

1.7.2   Financial

The cost of membership is £1.00 and this can be met from existing budgets.

1.7.3   Legal

Officers in the Legal Department have read the Articles of Association and the Application Form and are content to sign the Application Form as a deed on behalf of the Council.

1.8        Background Documents

1.8.1   None

1.9        Reason for Urgency

1.9.1   The Annual General Meeting of SEERA Limited is on 16 October 2009 and the Leader must attend with the signed Application Form and membership fee.