Issue details

Leader of the Council, Group Leaders, Chief Finance Officer, One Legal

One Legal has advised that the LGA is an unlimited liability company which means that, if the company were to be dissolved, the 415 public authority members would be responsible for any deficit (should one occur) proportionate to the levels of annual subscription paid. Conversely, member authorities would also be entitled to a share of any assets. Also, that member authorities are liable for net liabilities of the LGA for 5 years after they cease to be members. These aspects are intended to mirror the previous arrangements under which authorities signed up to the LGA as an unincorporated association.

The Chief Finance Officer believes that it would be in CBC’s best interests to continue its membership of the LGA and that not to be a member could be detrimental to CBC. By way of example, the LGA is currently supporting CBC on three national group litigation cases and has provided considerable cost neutral support through peer review. The LGA is widely regarded as the voice of local government and is key to supporting the sector through the Fair Funding review and Business Rates retention.

The Leader of the Council has expressed his support for continued membership of the LGA, as have the two Opposition Group Leaders.