STOCKTON-ON-TEES BOROUGH COUNCIL
CABINET DECISION
PROFORMA
Cabinet Meeting ........................................................................ 17 July 2025
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1. |
Title of Item/Report
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Hotel Company Report
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Record of the Decision
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Consideration was given to a report that sought approval to update the governance arrangements for the Council’s wholly owned hotel company, Stockton Hotels Company Ltd, and its parent company, Stockton Borough Holding Company Ltd. The proposed changes were intended to update the Council’s role as shareholder, further strengthen board composition through the introduction of independent expertise and establish a single, Shareholders’ Agreement to codify key controls and expectations.
The measures would reinforce oversight and reflect good practice in the governance of local authority trading companies.
RESOLVED that:-
1. The development of a new Shareholders’ Agreement covering both Stockton Borough Holding Company Ltd (HoldCo) and Stockton Hotels Company Ltd (HotelCo) be approved.
2. The Council’s shareholder representative shall continue to be the officer exercising the statutory Section 151 responsibilities, following the retirement of the previous postholder.
3. The proposed enhancement of the HotelCo board through the appointment of independent non-executive directors with relevant commercial or hospitality experience be approved.
4. Tracey Carter, Director of Regeneration & Inclusive Growth be appointed as a council appointed director of each company.
5. Authority be delegated to the Director of Corporate Services, the Section 151 Officer and the Chief Executive to finalise the Shareholders’ Agreement in consultation with the Leader of the Council.
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Reasons for the Decision
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The proposals represent a strengthening of the Council’s governance of its trading companies. By updating shareholder arrangements and enhancing board capability, the Council will ensure that its hotel company structure remains robust, accountable and aligned with its objectives.
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4. |
Alternative Options Considered and Rejected
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None
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5. |
Declared (Cabinet Member) Conflicts of Interest
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None
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Details of any Dispensations
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None
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7. |
Date and Time by which Call In must be executed
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Midnight, Friday, 25 July 2025
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Proper Officer