The Company Secretary will present this item.

Recommendation(s):

That the Housing Group Shareholder resolves to:

Amend the Shareholder’s Agreement for the Housing Group in the manner specified in the report to facilitate inter-company loan transfers.

The Company Secretary presented this item and said that while the making of loans was a matter properly reserved for shareholder consent, it had become apparent that in practice this requirement was unduly restrictive for routine operations between the Housing Group companies. He explained that this might occur, for example, if the holding company were to receive a loan from the Council to make a property purchase, but when in the normal course of business that property is transferred to another group company, say the investment company for sale or letting, the repayment obligations under the loan could not “follow” the property without express shareholder consent.

To prevent the Housing Group having to request consent from the Shareholder on each such occasion, it was proposed that the Shareholder grant continuous authorisation to permit any of the Housing Group companies to make and accept inter-group loans and inter-group loan transfers.

The Shareholder resolved to:

Amend the Shareholder’s Agreement for the Housing Group in the manner specified in the report to facilitate inter-company loan transfers.