4.7.1 The mayor’s role in the council’s governance relationship with CCOs
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The governing body is responsible for the council’s decision-making in relation to the governance of council controlled organisations (CCOs) [1]. The council is the shareholder of the CCOs.
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The governing body’s CCO governance role includes establishing CCOs and their constitution [2], appointing directors [3], receiving statements of intent [4], undertaking performance monitoring and [5] receiving half-yearly and annual reports [6]. In respect of the council’s substantive CCOs, it also includes specifying expectations, as well as reporting, planning and other accountability requirements [7].
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Importantly, the council cannot direct CCOs in their operational decision-making [8].
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The mayor has an important role in maintaining the governing body’s governance relationship with CCOs.
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The mayor may represent the governing body to the chair and other CCO directors in relation to the council’s governance (for example, in relation to the CCO’s statement of intent or other reporting or accountability requirements). In this capacity, the mayor may maintain a relationship with a CCO’s chair or directors.
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The mayor’s and governing body’s relationships with CCOs are concerned with governance, and are therefore distinct from the operational and regulatory relationships that the chief executive and staff may have with the same CCOs. The latter relationships will relate to council operations that fall within chief executive or staff roles and that interact with CCO operations. It is appropriate that the mayor, the governing body and the chief executive are mindful of these distinctions between governance and operations.