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Shareholder
Executive
HM Government Commercial - In Confidence
Minutes of Shareholder Executive Board
Tuesday 9 July 2013 at 15.00
Members Patrick O'Sullivan (Chair) (POS) Attendees: Mark Boyle (MB)
present: Claudia Arney (CA) Fiona-Jane Macgregor (FJM)
Lord Carter (PC) Patrick Magee (PM) (item 4)
Gerry Grimstone (GG) Keith Morgan (KM) (item 4)
Jeremy Pocklington (JP)
Tony Watson (TW)
Roger Lowe (RL) Secretary: Peter Batten
Ken McCallum (KMC)
Anthony Odgers (AO)
Mark Russell (MR) Apologies: None
Ceri Smith (CS)
1. Apologies for absence, Chair’s welcome and introduction, minutes from last
meeting, declarations of interest
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ed that Post Office Ltd has presented a revised strategy to
2.6. AO explain
Ministers that seeks permission to move its branch modernisation programme
from a voluntary to mandated approach. AO noted that a voluntary approach
would not result in the desired reduction in taxpayer subsidy, and there was no
policy benefit to subsidising uneconomic branches. However Board noted that
a mandated approach was politically difficult to deliver.
2.7. AO was clear that completing the modernisation programme is critical to the
future competitiveness of the Post Office. In response to PC’s question, AO
explained that the Post Office’s long term goal is financial sustainability, and
eventual mutualisation. TW suggested that this was ill-defined. Board is due
to receive an update on Post Office strategy in September.
2.9. RL provided an update on the Royal Mail transaction, noting the intention to
sell a majority of shares this year. RL noted that the CWU had not engaged
with the process as hoped, particularly on the employee share offer. Board
noted that assuming a transaction value of £3 billion, the employee share offer
would be worth around £2,000 to each eligible member of staff.
2.10. MR noted that the transaction process has, to date, run more smoothly than
initially expected, suggesting this was in part due to good quality engagement
between the company and investors. However, MR also noted that further
precautionary work on a back-up strategy was necessary.
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4. Business Bank
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5. Nuclear Decommissioning Authority
7. Actions
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Outstanding actions
Action I Action point Action I Due Status
ref. officer__I date
13/11 Full Board paper to consider I AO Sept / An interim update is
Post Office Ltd commercial Nov provided in the CEO
strategy. 2013 report of these papers.
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ShEx Board Secretary