Changes to Board Recommended

Cabinet will next week be asked to consent to adopt changes to South Tyneside Homes Ltd's constitution to ensure it reflects national best practice.

It will be recommended that the terms of office of all directors should be shortened so that they meet current National Housing Federation governance standards.

The company's board is made of four directors nominated by the council, four tenant board director and four independent board directors.  The maximum term for independent and tenant directors is currently nine years. There is currently no maximum term for council directors.

The NHF Code recommends that directors should normally be appointed for a term of three years and that directors should not serve more than two terms unless the board resolves that it is in the interests of the Company for a further three-year term to be served.

At the Council's request, South Tyneside Homes carried out a review of its constitution to ensure it was fit for purpose.

As a result, it is recommended that changes to the constitution be made to reflect current guidance and standards.

Cllr Jim Foreman, Lead Member for Housing and Community Safety, said: "Limitations are recommended for the terms of all directors so that the Board, which is

entirely non-executive, can be regularly revitalised by directors with a range of experience and viewpoints to ensure that its scrutiny role is undertaken with fresh challenge.

"The Board is developing a succession plan to ensure that Board members receive appropriate

training and so that vacancies occur in a planned way to avoid the Board 'turning over' too many members at one time."

It is proposed that the amendments to the constitution are considered at the company's AGM in November and Cabinet is recommended to authorise the Council's representative at the meeting to vote in favour of adopting the changes.