Last week, the Lib Dem administration on Woking Borough Council agreed a number of governance reforms following a review of its companies.

Local authorities have the power to set up companies or bodies, which they own, for commercial activities related to their ordinary functions. Woking Council has 15 wholly owned companies and eight joint ventures – these include the Brookwood Cemetery Limited, ThamesWey group of companies and Victoria Square Woking Limited.

The Borough Council has several companies which it either owns or has interests in, which were formed to deliver Council objectives in a more efficient and effective manner. The recommendations the Lib Dems and I are proposing will improve governance of these companies in line with current best practice and allow the Council to closely monitor its interests with greater clarity, transparency, and reporting.

Under the new governance arrangements being put forward at Full Council on Thursday, Councillors will no longer be appointed to company boards avoiding a possible conflict of interest. Instead, there will be increased opportunity for all Councillors to review and scrutinise what companies are doing to ensure that the social objectives set by the Council are not lost in the drive toward the overriding and essential requirement for a company to be economically successful.

The recommendations include the creation of two new officer posts to put relationships between the Council and its companies on a proper business-like footing by cross-charging for financial and legal services. The Council also needs to satisfy itself that sufficient standards of operational governance, legal and company secretarial compliance and effective financial management within its company are adhered to.

These reforms fit with the work we as the new Lib Dem are doing to get the Council’s finances on a sustainable footing and support other commitments set out in the ‘Woking for all’ strategy, including conducting Council business with openness and transparency, and ensuring we are a high performing Council.