A Labour councillor has voiced concerns over the proposed new governance framework for Northumberland County Council's development company that would see just one councillor sit on the board.
The new framework has been designed following the findings of the Max Caller review earlier this year, which identified issues in the relationship between the council and its subsidiary company, Advance Northumberland.
The Caller report claimed "arrangements for an effective governance framework by the council are not yet in place" in terms of Advance four years after it was established following the dissolution of its highly controversial predecessor, Arch.
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In July, the council's deputy leader Richard Wearmouth admitted that "effective governance was not in place" at the company and said work was ongoing to implement the recommendations of the Caller review.
On Monday, a report proposing the adoption of a series of principles and expectations between the council and its owned companies - namely Advance - was presented to members of the council's corporate services and economic growth overview and scrutiny committee.
Speaking at Monday's meeting, Coun Wearmouth said the report was "looking at the issue of governance by the council rather than issues with the company."
He added: "Some councillors, deliberately or not, misunderstood that. It is how the council interacts with its subsidiary companies."
Sarah McMillan, the council's assistant service director for policy, continued: "What the report does is it allows for cabinet to move the recommendations and move forward with a number of the Caller recommendations around company governance framework.
"It recognises there is a balance with allowing the companies to deliver their own aims and allowing the council to oversee that."
The principles would see an increase in the number of "independent non-executive directors" on the company's board in order to provide "expertise and skill in leading the company" while also retaining one elected councillor and one council officer as directors.
Labour councillor Mary Murphy was concerned that this would mean there would be a risk of political bias on the board.
She said: "I personally believe that if we have any political involvement on that board it should be balanced. That's a concern I have about it.
"Clearly when you have one, they can only represent one party."
Northumberland County Council is currently led by a Conservative minority administration, with the party one seat short of an overall majority. Labour are the largest opposition party.
Coun Wearmouth replied: "I understand some of us fly under a political banner - you and I certainly do - but when you step through that door you have to shed that. I think we just have to monitor that and make sure people are content that it is working."
The councillor who would sit on the board would not be allowed to be a member of the council's cabinet, and will be appointed on the basis of being able to bring corporate expertise to the company. The member will be appointed by the board working with the council's shareholder representative and leader.
The unaltered proposals were unanimously approved by cabinet on Tuesday.
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