Andium Homes Limitied: Nomination of a Guarantor's Appointee

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 24 October 2019

Decision Reference: MD-TR-2019-0104
Decision Summary Title:	Andium Homes Limited: Nomination of a Guarantor’s Appointee		Date of Decision Summary:	24th October 2019
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Andium Homes Limited: Nomination of a Guarantor’s Appointee		Date of Written Report:	24th October 2019
Written Report Author:	Director of Treasury and Investment Management		Written Report : Public or Exempt?	Public
Subject: To nominate a Guarantor’s Appointee at Andium Homes Limited.
Decision(s): The Assistant Minister decided to nominate a Guarantor’s Appointee at Andium Homes Limited
Reason(s) for Decision: The Memorandum and Articles of Association permit the Guarantor to nominate a Guarantor’s Appointee.
Resource Implications: There are no financial or manpower implications for the Government associated with this decision.
Action required: The Head of Financial Governance to let the Director of Treasury and Investment Management know when this decision is signed.
Signature:		Position: Deputy L Ash, Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision:

Andium Homes Limited: Nomination of a Guarantor's Appointee

- 1 -

Treasury and Exchequer

Ministerial Decision Report

Andium Homes Limited: Nomination of a Guarantor’s Appointee

Purpose of Report

To enable the Assistant Minister to nominate a Guarantor’s Appointee at Andium Homes Limited.

Background

Following recent departures, the Board of Andium is without two Independent Directors and the current Chairman’s term of office terminates on 31st October 2019. This clearly leaves the Board under strength and potentially unable to operate to the standard’s required at a time when the Company has a large and complex development programme to deliver social housing in Jersey.

The Memorandum and Articles of Association of the Company approved by the States Assembly through P.60/2014 provide for the Guarantor (represented by the Minister for Treasury and Resources or as delegated to the Assistant Minister for Treasury and Resources) to appoint any Director at any time.

As an immediate solution to the reduction in Independent Directors the Guarantor is proposing to nominate an Appointee to the Board. The prospective candidate is Sir Mark Boleat who the Guarantor believes possesses the required skills, background and understanding of the Jersey context to be able to quickly get up to speed with the company’s affairs.

Sir Mark will specifically focus on commencing the process for the recruitment of a new Chair, in line with the Jersey Appointments Commission’s guidelines and leading the search for other Independent Directors who possess the skills identified in a recent Board Effectiveness review undertaken by the company. Furthermore, Sir Mark will be asked to undertake a wider review of the Company’s governance and the recruitment of a new Finance Director is also a priority.

It is intended that Sir Mark’s term will be for a maximum period of 12 months or until a suitable long-term Chair is identified through the Commission’s process, whichever is sooner. Sir Mark will not be putting himself forward for consideration for any longer-term role on the Andium Homes Board.

The Jersey Appointments Commission have been consulted on this appointment and have been content to approve given the exceptional circumstances Andium are facing now.

3. Recommendation

The Assistant Minister is recommended to nominate a Guarantor’s Appointee at Andium Homes Limited.

4. Reason for Decision

The Memorandum and Articles of Association permit the Guarantor to nominate a Guarantor’s Appointee.

5. Resource Implications

There are no financial or manpower implications for the Government associated with this decision.

Report author : Director of Treasury and Investment Management	Document date 24th October 2019
Quality Assurance / Review :Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0104 - Andium Homes Limited Nomination of a Guarantor’s Appointee
MD Sponsor: Treasurer of the States