Issue - meetings

Recommendations

The Executive are requested to:

1)     approve the application to strike off and dissolve Brimhams Active Limited;

2)     authorise the Company’s directors to apply to Companies House for the  voluntary strike-off of the Company;

3)     delegate any decisions relating to the financial implications of the dissolution the Company to the Corporate Director (Resources); and

4)     authorise the Assistant Chief Executive (Legal and Democratic Services) to take all necessary steps to facilitate the strike-off of the Company.

Considered – A report of the Assistant Director, Culture, Leisure, Archives and Libraries requesting approval to dissolve Brimham’s Active Limited, being a wholly owned Council company that would cease to trade on 1 December 2024 when its operations were brought in-house.

Councillor Simon Myers, Executive Member for Culture, Arts and Housing, introduced the report and referred to the previous decision to transfer the delivery of leisure services to a single in-house model.  Brimhams Active was a company set up by Harrogate Borough Council which would cease to trade after 1 December 2024 and a legal process was now required to wind up the company.  

Resolved (unanimously) – that

1)     an application be made to strike off and dissolve Brimhams Active Limited;

2)     the Company’s directors be authorised to apply to Companies House for the  voluntary strike-off of the Company;

3)     any decisions relating to the financial implications of the dissolution of the Company be delegated to the Corporate Director (Resources); and

4)     the Assistant Chief Executive (Legal and Democratic Services) be authorised to take all necessary steps to facilitate the strike-off of the Company.

Reasons for Recommendations

To enable the dissolution of Brimham’s Active as a company to support the enactment, in an efficient way, of the wider decision to create a single in-house leisure service (Active North Yorkshire).

Alternative Options Considered

The voluntary strike off procedure is not the only way a company may be struck off and dissolved. The other options are:

·        Do nothing and await involuntary strike off. The registrar has the power to strike off a company that it has reasonable cause to believe is not carrying on business or in operation (also known as a defunct company.) There is no certain period within which Companies House will decide to take such action. By making a voluntary application the uncertainty is removed.

·        Put the company into liquidation. This is the most costly of the procedures for terminating a company.