The resignation of Nottingham City Council's leader from a housing company has been pushed back after he previously said he would step down last month over conflict of interest claims. David Mellen said at a meeting in March that both he and Councillor Leslie Ayoola would resign from the board of Blueprint (General Partner) Limited.
The company was formed in 2005 and is partly owned by Nottingham City Council. Blueprint has worked on projects across the East Midlands, including the redevelopment of The Meadows.
But at the March 6 full city council meeting, Councillor Mellen said the council had received advice in previous months about a "perceived" conflict of interest when it came to councillors on company boards. He was asked if any council property had been sold under value to Blueprint during his time on the board, to which he replied: "As far as I'm aware, no."
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In terms of his general position at the company, Councillor Mellen said at the time: "Following the recent completion and approval of the companies governance handbook, executive members with perceived conflicts have agreed to step down from boards where there is an actual or perceived conflict.
"This will happen in May, rather than in a rush, giving time for planning for the company so they can welcome and induct new board members." But with May having passed, Companies House still shows both Councillor Mellen and Ayoola as being active directors of Blueprint.
Nottingham City Council has now confirmed that the two councillors will stand down once replacements have been found, rather than by a set date. A spokesperson said: "To ensure the board maintains sufficient personnel, Councillors Mellen and Ayoola will stand down once replacements have been appointed in line with the new policy."
It comes as the city council has just approved a new policy on appointing directors to the companies it owns, which also include EnviroEnergy and Nottingham City Transport. The policy has been drawn up under instruction from the Government-backed Improvement and Assurance Board which is overseeing improvements at the council.
The new policy reads: "Whilst it will be the norm that officers, not members, will be appointed as directors, this should not prevent the council from appointing members as directors where that is considered to be in the best interests of the company and the council." But the policy also adds: "A member as director must not be a party to making a decision of the council affecting the company, but may proffer evidence or advice to the council on the company's behalf when invited to do so."
Nottinghamshire Live reported in 2020 on two reviews which were critical of putting councillors on boards without industry experience. The Public Interest Report published in the aftermath of the collapse of Robin Hood Energy found: "The inclusion of councillors directly on the boards of companies is not seen as good practice."
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