Issue - meetings

To consider a report seeking approval for the Authority, as sole shareholder, to approve the recommendation of the Board of Directors of North Tyneside Trading Company Limited to declare the dividend in respect of the year ended March 2020.

Cabinet received a report seeking approval of the Authority, as sole shareholder, to approve the recommendations of the Board of Directors of the North Tyneside Trading Company Limited to declare the dividend in respect of the year ended March 2020.

North Tyneside Trading Company Limited, a company owned wholly by the Authority, had recommended the declaration of a dividend payment of £0.500m to the Authority as its shareholder in respect of the year to 31 March 2020.  This represented the Authority’s return on its investment in the company.  The Authority, as sole shareholder, was required to approve the recommendation to the Board of Directors of North Tyneside Trading Company Limited to declare the dividend in order that it could be paid.

Cabinet considered the following decision options: to accept the recommendation as set out in paragraph 1.2 of the report, or alternatively, to not approve the recommendations.

Resolved that (1) the recommendation of the Board of Directors of North Tyneside Trading Company Limited to declare a dividend of £0.500m in respect of the year ended 31 March 2020 be approved; and

(2) the Head of Law and Governance be authorised to complete a Shareholder Written Resolution confirming to the Board of Directors of North Tyneside Trading Company Limited that the Authority agrees to the payment of the dividend specified in (1) above.

(Reasons for decision: Declaration of a dividend by North Tyneside Trading Company Limited is the means by which the Authority derives its return from its investment in the Company; without the dividend, the Authority would be unable to obtain any return from its investment.)