66. Companies, joint ventures and other legal entities

66.1. In certain circumstances it may be advantageous to the institution to establish a company, joint venture or other legal entity to undertake services on behalf of the University. Any member of staff considering the use of a company or a joint venture should first seek the advice of the Director of Finance, who should have due regard to guidance issued by the funding body.

66.2. Council is responsible for approving the establishment of all companies or joint ventures and the procedure to be followed in order to do so. This will have regard to any guidance provided by the funding bodies. The process involved in forming a company or a joint venture and arrangements for monitoring and reporting on the activities of these undertakings are documented in the University’s operational financial procedures.

66.3. It is the responsibility of Council to establish the shareholding arrangements and appoint directors of companies wholly or partly owned by the University.

66.4. The directors of companies where the University is the majority shareholder must submit, via the Vice-Chancellor’s Executive Group, an annual report to Council. They will also submit business plans or budgets as requested to enable the Group to assess the risk to the University. The University’s internal and external auditors shall also be appointed to such companies.

66.5. Where the University is the majority shareholder in a company, that company’s financial year shall be consistent with that of the University.