Logan City Council today took the first steps towards winding down the operations of Invest Logan Pty Ltd.
Council's Planning, Economic Development and Environment Committee carried a motion that the for-profit entity be directed towards voluntary deregistration.
The revised strategic direction follows an independent investigation into Invest Logan Pty Ltd's future purpose and value proposition.
Council is the sole shareholder of Invest Logan Pty Ltd, which was established in 2016 to deliver a range of initiatives that would contribute to the strategic and economic growth of the City of Logan and its community.
Today's decision will be presented at Council's Ordinary Meeting on Wednesday, March 22 for ratification.
Mayor Darren Power said:
"A range of factors have contributed to this decision, including whether the purpose of Invest Logan Pty Ltd aligns with Council's strategic vision, challenging economic times, public interest grounds, financial and risk management performance, the entity's objective and governance arrangements."
For background, the recommendations made by the Committee were:
- That following a comprehensive review of investLogan against Council's Beneficial Enterprises Policy and Best Practice Framework for Beneficial Enterprises, which was undertaken by an independent consultant, Council has decided that it is in the broader public interest to take steps to discontinue investLogan as a beneficial enterprise. This decision has been informed by a range of factors, including whether the purpose of investLogan is aligned to Council's strategic vision, the challenging economic times for development entities, whether the public interest need upon which it was grounded continues to be relevant, its financial and risk management performance, its objective, and governance arrangements. Council is focused on ensuring that investment opportunities in Logan are encouraged through fit for purpose development activities.
- That Council take the steps required for the orderly cessation of all activities by Invest Logan Pty Ltd with a view to carrying out a voluntary deregistration of Invest Logan Pty Ltd under section 601AA of the Corporations Act 2001.
- That the Chief Executive Officer be authorised to engage with the board of Invest Logan Pty Ltd to seek its cooperation to take steps to cease the activities of Invest Logan with a view to meeting the criteria in section 601AA (2) of the Corporations Act 2001 as soon as possible.
- That the Chief Executive Officer liaise with the Company Secretary of Invest Logan Pty Ltd to prepare for submission to Council any matters requiring formal decision by resolution of the Council concerning the cessation of activities and progression to voluntary deregistration and to otherwise be approved to attend to any administrative matters to assist with those activities including the integration of assets, staff and other property of Invest Logan Pty Ltd into the local government entity.
- That the Chief Executive Officer be authorised to execute documents for Council as the sole member to give effect to clauses 2 and 4 above.
- That at the discretion of the Chief Executive Officer, the confidential report of the Director, Organisational Services titled InvestLogan update, be placed into the public records.
