New Charter Board Directors remunerate themselves

----- Original Message -----

From: Ardern, John

To: 'Starlord'

Cc: Pearson, Vicky

Sent: Thursday, April 08, 2010 11:17 AM

Subject: RE: Board Directors and payments received

I have attached documents and response below which I hope answer your questions. In summary, there was a significant amount of discussion and consultation on the matter of Board remuneration which received the Trust Board's support.

From: Starlord
Sent: 06 April 2010 14:26
To: Ardern, John
Subject: Board Directors and payments received

Hi John,

At the time of the LSVT New Charter said:

"There can be no payment for Directors under strict Housing Corporation directions."

"Those taking seats on the Boards cannot by law be paid."

01. When did the law change to facilitate making such payment to Board Directors?

http://www.housingcorp.gov.uk/server/show/ConWebDoc.11381

02. When did the Boards take the decision to pay themselves for what was previously a voluntary service?  

See attached documents

03. Who proposed this change?

See attached documents

04. Please provide the minutes of the Board meeting where this decision was made, presumably a New Charter Housing Trust Board meeting.

Reference is included in docs attached

05. Please provide the votes cast both for and against this decision that Board Directors be remunerated including names, especially the votes of the Tenant Directors.
This information is not available – the decision was made as normal with no disagreement recorded

06. What reason was given for why payment was now needed?
See attached documents

07. What is the money supposed to be used for?
See attached documents

08. Are all Tenant Directors paid?
They have a choice whether to accept payment or not

09. Does such a payment made to a Director conflict with DWP and Housing Benefit Regulations?
The payment is classed as income which is taxable

10. Is it treated as an income subject to means testing?
The payment is classed as income which is taxable

11. Have tenants been informed of this change to the remuneration/payment of all Board Directors?
The Tenants Federation was significantly involved in the consultation period, however I can find no evidence of there being a general mailing or publicity through a newsletter of the Board decision to remunerate Board members.

I only discovered this myself by chance. I can find no reference to this financial arrangement anywhere on the New Charter website. Please point me to the relevant html link! I can find very little information relating to Board Directors on the website apart from a listing with photos of current directors but with no information whatsoever about their Board purpose. Tiny amounts of information are scattered elsewhere throughout numerous documents which I can find only by using the onsite search facility, and even then with much difficulty.

12. What is the role of a Tenant Director apart from: [Statement of directors' responsibilities in respect of the Director's Report and the financial statements. The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.]
See attached document "Duties" which I hope answers your request

13. Please provide the accounts for all Board activities ie New Charter Housing Trust Board, New Charter Housing North Board, New Charter Housing South Board, New Charter Homes Board, New Charter Property Services Board, New Charter Building Services Board, since Director remunerations/payments began. I am assuming for now that the Boards of Management are the Boards of Directors. This may not be the case.
I am not sure exactly what detail of information you want here – Levels of pay are highlighted in the relevant attached document and expenses are strictly authorised in line with the expenses policy. Payments are only authorised on production of valid receipts. We do not publish these expenses details.

14. Are the Boards of Management identical with the Boards of Directors?
yes

I am only interested in financial matters with regards to the operations of the Boards of Directors themselves ie the New Charter Housing Trust Board, New Charter Housing North Board, New Charter Housing South Board, New Charter Homes Board, New Charter Property Services Board, New Charter Building Services Board. I'm afraid the figures given in the Company's yearly Financial Statements are inadequate to my needs because they do not separate out the financial costs of the Boards of Management from that of the GMT. Further I am really only interested in those Boards upon which Tenant Directors may sit and not the GMT where they do not. In the Company's Yearly Financial Statements under EMOLUMENTS (def: Payment for an office or employment; compensation received by virtue of holding an office or having employment (usually in the form of wages or fees)), it states: "The remuneration paid to the Group Management Team, (GMT), and members of the Boards of Management was:" This lacks clarity because the Board Directors payments are merged with the GMT payments. Please supply a more detailed copy that gives a detailed breakdown. I am assuming for now that Boards of Management equates with Boards of Directors.
We do not publish these expenses details

15. Since Board Director remuneration/payments began how much money in total has been paid out in each tax year. List by tax year or whatever other year system you wish to use.
We do not publish these expenses details + not all Directors accept remuneration.

16. Do Directors receive the exact same amount of money no matter which Board they sit on?
See attached documents

17. Do Directors receive a single payment no matter how many Boards they sit on?
See attached documents

18. Do Directors receive separate payments for each Board they sit on?
See attached documents

19. Please provide all financial costing details for payments made by New Charter to the various Boards of Directors. I assume for now this cost is borne by New Charter. If this general question does not elicit the needed information I shall be forced to repeat myself with numerous precisely worded questions. For now I am avoiding doing so as to give the Company a chance to comply with my request for information.
We do not publish these expenses details.

I feel all tenants have the right to a full factual break-down of such Director expenses.

Love, Light & Laughter

Starlord

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New Charter Housing Trust Limited is a company Limited by Guarantee, registered in England and Wales, company number 3807262;

New Charter Homes Limited is a company Limited by Guarantee, registered in England and Wales, company number 3807022;

New Charter Building Company Limited is a company Limited by Guarantee, registered in England and Wales, company number 3807120;

Gedling Homes is a company Limited by Guarantee, registered in England and Wales, company number 05975258.

The registered office for the above companies is Cavendish 249, Cavendish Street, Ashton-under-Lyne, OL6 7AT where a list of members' names is available for inspection.

Aksa Housing Association Limited is an Industrial and Provident Society registered with the Financial Services Authority, registered number 27003R. The registered office is Aksa House, 2 Medtia Square, Phoenix Street, Oldham, OL1 1AN where a list of shareholders' names is available for inspection.

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