Decision details

Members welcomed the establishment of Broxtowe Local Enterprise Agency, and agreed to incorporate this as a Community Interest Company. The establishment of the Broxtowe Local Enterprise Agency Community Interest Company would provide a boost to the Borough’s economic development objectives by fostering meaningful connections between very small local businesses, entrepreneurs, and larger enterprises based in Broxtowe and was in accordance with the Council’s priority of Business Growth.

RESOLVED that the establishment of the Broxtowe Local Enterprise Agency be approved.

Reason

Section 1 of the Localism Act 2011(the Act) included a ‘general power of competence’. It gives local authorities the legal capacity to do anything that an individual can do that is not specifically prohibited. This power can be for the benefit of the authority, its area or persons’ resident or present in its area. Further, Section 4(2) of the Act states that where, in exercise of the general power a local authority does things for a commercial purpose, it must do so through a company. A Community Interest Company falls within the meaning of a company within section 1(1) of the Companies Act 2006.