Agenda item

SUMMARY

Following the introduction of the Local Government Act 2020 and requirement for Regional Library Corporations (RLCs) to be wound up in accordance with section 330(4) and a beneficial enterprise established in accordance with section 110, at Council Forum in August 2021 Councillors requested officers:

·                Write to the CEO of Eastern Regional Library Corporation (ERLC) to provide in principle support to progress to the establishment of a New Library Corporation (NLC) under section 110 of the 2020 Act;

·                Engage appropriate legal services to undertake a review of the NLC and prepare a risk assessment in accordance with section 111 of the 2020 Act; and

·                Subject to the legal review, and officer’s consideration of proposed future arrangements, prepare a report for consideration of Council to endorse participation in the NLC in accordance with section 110 of the 2020 Act.

Legal services were engaged and provided with the draft constitution, risk assessment and draft transfer of business agreement for review. Legal services advised that the draft constitution, risk assessment and draft transfer of business agreement accord with section 110 of the Local Government Act 2020 and they are satisfied that what is proposed will meet the requirements of section 111.

Based on external legal advice and officer review of documentation Council has met, and will continue to meet, the requirements pursuant to section 110(1) and section 111 of the Local Government Act 2020.

Council has:

1)    Assessed the total investment involved and the total risk exposure and ensured that its total risk exposure does not exceed its total investment;

2)    Ensured that the corporation is a limited corporation;

3)    Ensured through the company’s Constitution and the Your Library Agreement:

a)    risk management arrangements have been established;

b)    regular performance monitoring and reporting arrangements in relation to the beneficial enterprise are implemented;

c)    any changes to the operation or purpose of the beneficial enterprise are reported to Council;

d)    risks associated with any changes to the operation or purpose of the beneficial enterprise are identified and managed; and

e)    a report on the operations and performance of the beneficial enterprise will be included in its annual report.

In line with the draft constitution section 18.1, each member Council is required to appoint two Board members (Directors) to the NLC.