The following motion has been submitted in accordance with Council Procedure Rule 3.40 by Cllr Tony Riordan:-
" In October 2023, the Economic Crime and Corporate Transparency Act received Royal Assent. This means that small companies and micro-entities, such as Stockton Hotels Company Limited, will have to file a profit and loss account, which with small companies having to also file a director’s report. This change ensures that turnover is available on the public register. The Bill also removes the option for companies to prepare abridged accounts.
The requirements for a profit and loss account will be set out in regulations and will ensure companies are given fair warning of the changed expectations.
To get ahead of the regulations and promote transparency at the very highest-level to our residents, Stockton Borough Council in its role as shareholder resolves,
1. To request Stockton Hotels Company Limited to provide copies of all the profit and loss accounts, since incorporation, and within one month, so that Stockton Borough Council can publish them.
2. To request Stockton Hotels Company Limited to provide copies of all the Directors Reports, since incorporation, and within one month, so that Stockton Borough Council can publish them."
Minutes:
The following motion had been submitted in accordance with Council Procedure Rule 3.40, moved by Councillor Tony Riordan, seconded by Councillor Niall Innes:-
"In October 2023, the Economic Crime and Corporate Transparency Act received Royal Assent. This means that small companies and micro-entities, such as Stockton Hotels Company Limited, will have to file a profit and loss account, which with small companies having to also file a director’s report. This change ensures that turnover is available on the public register. The Bill also removes the option for companies to prepare abridged accounts.
The requirements for a profit and loss account will be set out in regulations and will ensure companies are given fair warning of the changed expectations.
To get ahead of the regulations and promote transparency at the very highest-level to our residents, Stockton Borough Council in its role as shareholder resolves,
1. To request Stockton Hotels Company Limited to provide copies of all the profit and loss accounts, since incorporation, and within one month, so that Stockton Borough Council can publish them.
2. To request Stockton Hotels Company Limited to provide copies of all the Directors Reports, since incorporation, and within one month, so that Stockton Borough Council can publish them."
Moved by Councillor Bob Cook, seconded by Councillor Nigel Cooke that the substantive motion be amended as follows:-
“Recognising the essential need for transparency across the public sector, particularly in organisations that directly or indirectly receive public funds, this Council acknowledges the recent developments in financial reporting regulations. In October 2023, the Economic Crime and Corporate Transparency Act received Royal Assent. This means that small companies and micro entities, such as Stockton Hotels Company Limited, will have to file a profit and loss account, with small companies having to also file a director's report. This change ensures that turnover is available on the public register. The Act also removes the option for companies to prepare abridged accounts.
The requirements for a profit and loss account will be set out in regulations and will ensure companies are given fair warning of the changed expectations.
In this spirit, and to set a precedent for openness and accountability, and to get ahead of the regulations and promote transparency at the very highest-level to our residents, this Council in its role as shareholder resolves:
1. To request Stockton Hotels Company Limited to provide copies of its profit and loss accounts so that this Council can publish them.
2. To request Stockton Hotels Company Limited to provide copies of its Directors Reports, so that this Council can publish them.
3. To agree an annual review of our companies by Cabinet to include consideration of financial and operational performance.
And to lead by example in promoting transparency and accountability, not only for this Council but also by encouraging as a constituent member of the Combined Authority equivalent practices, this Council resolves:
4. To request the Tees Valley Mayor to adopt similar measures of transparency for the companies under the control, or influence of the Tees Valley Combined Authority including an annual review by the Combined Authority Cabinet."
Following a debate, a vote took place and it was agreed that the amendment be carried and therefore the amendment became the substantive motion.
No further amendments were moved so a vote then took place on the substantive motion.
The substantive motion was unanimously carried as follows:-
“Recognising the essential need for transparency across the public sector, particularly in organisations that directly or indirectly receive public funds, this Council acknowledges the recent developments in financial reporting regulations. In October 2023, the Economic Crime and Corporate Transparency Act received Royal Assent. This means that small companies and micro entities, such as Stockton Hotels Company Limited, will have to file a profit and loss account, with small companies having to also file a director's report. This change ensures that turnover is available on the public register. The Act also removes the option for companies to prepare abridged accounts.
The requirements for a profit and loss account will be set out in regulations and will ensure companies are given fair warning of the changed expectations.
In this spirit, and to set a precedent for openness and accountability, and to get ahead of the regulations and promote transparency at the very highest-level to our residents, this Council in its role as shareholder resolves:
1. To request Stockton Hotels Company Limited to provide copies of its profit and loss accounts so that this Council can publish them.
2. To request Stockton Hotels Company Limited to provide copies of its Directors Reports, so that this Council can publish them.
3. To agree an annual review of our companies by Cabinet to include consideration of financial and operational performance.
And to lead by example in promoting transparency and accountability, not only for this Council but also by encouraging as a constituent member of the Combined Authority equivalent practices, this Council resolves:
4. To request the Tees Valley Mayor to adopt similar measures of transparency for the companies under the control, or influence of the Tees Valley Combined Authority including an annual review by the Combined Authority Cabinet."