Issue - meetings

Report No: CAB/FH/17/052

Portfolio Holder: Stephen Edwards            Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (20 December 2017)

That:-

1.           The first year review of performance of the Council’s Solar Farm be noted.

2.           Forest Heath District Council, as the shareholder of Greenheath Energy Ltd, agree to the small company audit exemption being applied and the Council to give financial guarantee over Greenheath Energy Ltd.

3.           Forest Heath District Council, as the shareholder of Greenheath Energy Ltd, support the Directors to apply to strike off Greenheath Energy Ltd on their behalf.

(Report No: CAB/FH/17/052)

Councillor Stephen Edwards, Portfolio Holder for Resources and Performance presented this report which reported on performance since the purchase of Toggam Solar Farm in July 2016.

The Portfolio Holder explained that in relation to the first year performance, overall, the site had outperformed the modelled performance data for this period.  This had resulted in a net benefit of £308,000 (compared to a predicted £300,000 net benefit) to be reinvested into the delivery of much valued district wide services.

As a standalone company, Greenheath Energy Ltd, would be subject to the small company exemption from an external audit, as whilst they had the intercompany asset balance, their turnover was less than £10m and they had less than 10 employees (they had no employees).  Therefore, to allow Greenheath Energy to continue to be entitled to the small company audit exemption and in line with the Directors’ proposals and having consulted with the Council’s Section 151 Officer and Monitoring Officer, it was proposed that the Council, as the shareholder, agreed to the small company audit exemption being applied and the Council to give financial guarantee over Greenheath Energy Ltd and its liabilities.

The solar farm now sat within the direct control of the Council, Greenheath Energy Ltd was not actively trading.  Legal advice had been sought on the options for Greenheath Energy Ltd and, therefore, based on the advice received and the work undertaken to ensure that there were no residual liabilities sitting within the company, the Directors recommended that they applied to strike off the company on the shareholders’ behalf, once the intercompany loan had been removed and any residual proceeds, assets or liabilities were transferred to the Council.

It was proposed, duly seconded and with the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (20 December 2017)

That:-

1.           The first year review of performance of the Council’s Solar Farm be noted.

2.           Forest Heath District Council, as the shareholder of Greenheath Energy Ltd, agree to the small company audit exemption being applied and the Council to give financial guarantee over Greenheath Energy Ltd.

3.           Forest Heath District Council, as the shareholder of Greenheath Energy Ltd, support the Directors to apply to strike off Greenheath Energy Ltd on their behalf.