Agenda item

To consider a report by the Head of Legal and Democratic Services (copy enclosed) on Member representation on outside bodies.

 

A copy of a report by the Head of Legal and Democratic Services (HLDS) had been circulated previously.

 

Members had previously considered a report on the Protocol for Members on Outside Bodies (OB’s), and further information had been requested regarding the creation of a mechanism by which Members could report back to the Council on their work and the activities of the OB.  The HLDS explained that the roles to which Members could be appointed on OB’s could differ greatly.  Some Members were appointed as Directors or Trustees, with both roles carrying specific legal duties and obligations to the body to which they had been appointed, and reference was made by the HLDS to the broad range of financial and reputational risks to the Authority.  A description of the various roles had been incorporated in Appendix 1, the Protocol and Guidance for Elected Members appointed to OB’s.

 

At its meeting in November, 2013, Members requested a list of OB’s to which Members had been appointed as set out in the following categories:-

 

·                 Bodies which set a precept that the Council collects.

·                 Bodies to which the Council pays a subscription to be a Members.

·                 Bodies which receive a grant or other financial assistance from the Council.

·                 All other Outside Bodies.

 

The list had been included as Appendix 2.  The Committee would need to consider the following issues when deciding how Members report back to the Council:-

 

·                 Whether there needs to be the same frequency and detail of reporting in respect of all OB’s.

·                 Whether the frequency and detail of reporting depends on the level of risk posed to the Council e.g. financial, reputational.

·                 Directors and trustees will owe duties in law to the body to which they are appointed and may be bound by obligations of confidentiality to that body that restrict the level of detail included in any report.

·                 The forum to which the reports are made

·                 The potential overlap and duplication with the system of Annual Reports for Members on their activities as Councillors.

 

In reply to a question from Mr P. Whitham, the HLDS confirmed that the list of OB’s, Appendix 2, was a working document and could be influenced by the Freedoms and Flexibilities process.  With regard to the formation of companies by the Authority, it would be important to ensure a balance in respect of how it was managed and monitored.

 

A draft template report, Appendix 3, had been included for Members’ consideration.

 

The Committee had been asked to consider issues set out in the report, which included how, when and to whom should Members report back, and to indicate their preferences to ensure a fuller consultation take place with all Members.

 

It was explained by the HLDS that the work of OB’s could contribute to the delivery of the Council’s priorities and regular information on their activities may assist the Council in planning future activity.  Some additional staff time could be incurred in administering the reporting process, but this should be contained within existing budget.  The report was the commencement of a consultation with Members.

 

In considering the report the following views were expressed by Members and responses provided to questions presented:-

 

-                  Regular reports should be submitted by Member representatives on OB’s which receive financial contributions from the Authority.

-                      Member representatives on OB’s should report to Cabinet who are the appointing body.

-                      The need to produce a Corporate Policy to define the role of Member representatives on OB’s.

-                    Concerns were raised regarding conflicts of interests, particular reference being made to Members appointed as Directors or Chairs of OB’s.   

 

The Chair and Members of the Committee felt that audit work currently being undertaken on arms-length organisations, and the review into the monitoring of Clwyd Leisure, could impact significantly on the mechanism adopted for Members on OB’s reporting back to Council, and it was agreed that a further report be presented to the Committee following the completion of the work.

 

RESOLVED – that Corporate Governance Committee:-

 

(a)             receives and notes the contents of the report, and

(b)             requests that a further report be submitted to the Committee following the completion of the audit work on arms-length organisations and the review into the monitoring of Clwyd Leisure.