Governance solutions for municipally owned companies: practical insights from England and Canada

Abstract

IMPACT This article provides insights into ‘what works’ in terms of successful governance arrangements for municipal operating companies (MOCs). Some studies, notwithstanding their value as scholarly endeavours, make assertions that lack a direct appreciation of practice. The author’s experience as a co-opted member of local government audit committees and interviews with practitioners provide the basis for the article; elected members, local government officers and those responsible for the management of MOCs might have an interest in its findings and conclusions. In particular, the article offers insights for those with an interest in and responsibility for accounting in and for MOCs. Clarity of purpose, robust decision-making processes and the quality of relationships between politicians and managers were more important than a ‘one size fits all’ approach. Veneration of so-called ‘traditional’ accounting practices fails to reflect the subtlety and nuance needed to operate MOCs successfully.