A campaign to take back community control of the Lauries Centre,
Claughton Road, Birkenhead has been launched. Evidence has emerged that
the Lauries has been taken over by the local chamber of commerce and is
not fulfilling its original purpose as a public asset for the community
of Birkenhead. A formal complaint signed by myself and local residents
has been submitted to Wirral Council. This alleges that council officers
and Labour councillors have failed to properly manage the Lauries and
protect the public funds invested in the centre.
Below you can read the complaint text in full as submitted by the non-political Birkenhead and Tranmere Neighbourhood Planning Forum. This was sent on December 9th. A response from Wirral Council is awaited.
STAGE 1 COMPLAINT: OPERATION OF THE LAURIES LIMITED LEASE
We, the undersigned, ask that the issues outlined below are dealt with in accordance with Wirral Council’s complaints procedure.
As this complaint contains concerns about the conduct and actions of
councillors and officers of the Council we would appreciate your early
response regarding how this will be investigated and, if corrective
and/or disciplinary action is required, what procedures will apply.
We would also appreciate the opportunity to meet with the person
appointed to deal with this complaint in order to provide any necessary
clarification and to assist in the resolution of this matter at the
earliest stage of the Council's complaints procedure. We consider that
you are obliged to provide for this in order to meet the Councils 2020
Vision commitment to openness and transparency.
Background to complaint
Early in the year 2000 community representatives, Councillors and
Council officers met in the old YMCA building to discuss which community
objectives for capital expenditure under European Objective 1 (Round 2)
and Single Regeneration Budget (Round 6) should be prioritised. At that
meeting two headline capital projects were decided upon that would
provide community meeting spaces at zero or very low cost for community
groups across the Birkenhead Ward (pre 2003 boundary). These capital
projects were The Lauries Project and the St James Centre. Both
buildings were constructed, thereby fulfilling the principal objective
of community representatives.
On 29 September 2005 the Council leased The Lauries Centre to The Lauries Limited for a period of 125 years.
The lease defines the permitted use of the building as use: “
only for
the purposes of a community centre, a neighbourhood college (including
workshops), a café/snack bar, offices and meeting rooms, conference and
events...in furtherance of the Tenant's aims and objectives as set out
in its memorandum and articles of association...being in brief the
promotion of any charitable purpose for the benefit of the community of
Birkenhead and areas surrounding and in particular the advancement of education the promotion of good health and providing a focus for development and regeneration.”
The lease therefore specifically links its own terms with those of the
memorandum and articles of association of The Lauries Limited.
Earlier this year it came to our attention that public access to the
building had been curtailed, the café had been closed down and it was
rumoured that the Wirral Chamber of Commerce had annexed the building.
This has since been confirmed because on its website the Wirral Chamber
of Commerce now promotes The Lauries Centre as one of its “unique and
exclusive office centres”. This makes it clear that the building is now
used exclusively for commercial purposes, rather than for the purposes
that together define the permitted use of the building, as set out in
the lease.
Potential breaches of the lease and company mismanagement
Companies House records show that on 31 May 2015 all of the existing
directors of The Lauries Limited (including Cllr Brian Kenny) resigned
en masse and two new directors, Paula Basnett and Asif Hamid, who are
both closely associated with Wirral Chamber of Commerce, replaced them.
The articles of association of The Lauries Limited require only one
third of the directors to resign at each annual general meeting. So, the
resignation of all directors was unusual to say the least. The articles
of association also require a minimum of five directors to be in post
at any one time. Once this was drawn to the attention of Paula Basnett,
three new directors were appointed (Patricia Crocker, Katherine Eugeni
and Sharon Stanton).
According to the articles of association, those three new directors may
only remain in post until the next annual general meeting, when their
appointment may only be extended by a vote of members of the company.
The question of membership of the company is therefore also a key issue.
On behalf of the Forum our chair wrote to the Company Secretary, Paula
Basnett, on 6 November 2016 requesting membership under the provisions
of Article 1.3 of the company’s articles of association. The Forum also
requested other information that the company is supposed to maintain,
namely:
- The company’s membership admissions policy
- A membership application form
- A list of current membership classes and their respective subscription fees
To date, no reply to this letter has been received.
The Forum was then approached by a former member of The Lauries Limited,
who showed us a letter written in 2009, in which one of the directors
at the time dismissed all of the remaining 36 members of the company,
offering to refund the balance of any subscriptions paid.
The available evidence indicates that the company has had no members
since 30 November 2009. However, it is members of the company who elect
directors at each annual general meeting. If there have been no members
since 2009 then all directors appointed after 30 November 2009 were
occupying those positions unlawfully, as are the current directors. If
there are no members, then the company has been operating outside of its
own articles of association for a substantial period of time and would
therefore appear also to be in breach of its lease with the Council.
Substance of complaint
We believe that the available evidence demonstrates that The Lauries
Limited is operating outside of the parameters laid down in its articles
of association, which in turn means that the terms of its lease with
the Council have been breached. This unlawful operation of the company
appears to have been ongoing since 30 November 2009.
We assert that Cllr Jean Stapleton, who was a director of The Lauries
Limited continuously from 18 May 2003 until 31 March 2015 was a party to
company mismanagement and breaches of the lease that occurred during
this time.
We assert that Cllr Phil Davies, who was a director of The Lauries
Limited from 6 January 2005 until 18 May 2013 was a party to company
mismanagement and breaches of the lease that occurred during this time.
We assert that Cllr Brian Kenny, who was a director of The Lauries
Limited from 17 February 2009 until 31 May 2015 was a party to company
mismanagement and breaches of the lease that occurred during this time.
In the light of the evidence obtained by the Forum and public records, it is alleged that Councillors
Davies, Kenny and Stapleton were party to unlawful decisions, either
knowingly or through negligence, in a manner that betrayed the
commitment to community control and ownership enshrined in the
memorandum and articles of association of The Lauries Limited.
It appears that Councillors and Council officers have failed:
1) in their duty to ensure that a significant public asset is managed in accordance with the terms of a lease agreement;
2) to effectively monitor the extent to which The Lauries Limited has
been and is being operated in accordance with its memorandum and
articles of association, and
3) to safeguard the use of public funds invested in the construction of The Lauries Centre.
Given these apparent failures we have further concerns that the
sub-leases of the building, which require Council approval, may not
comply with the terms of the principal lease.
In particular we are concerned if market rents are not being applied to sub-leases made to commercial companies.
We request that all of the concerns raised in the foregoing paragraphs
are investigated by the Council and that arrangements are put in place
to ensure that The Lauries Limited is henceforth operated fully in
accordance with its memorandum and articles of association and that the
lease is properly policed.
The Forum will co-operate fully with the Council’s investigation,
including providing copies of the evidential documents referred to in
this letter, if the Council cannot obtain them elsewhere.
Yours sincerely
signed by:
Cllr Pat Cleary Birkenhead & Tranmere Ward Councillor and nine other local residents.