Directors to Step Down After Governance Review
All directors of Sealladh na Beinne Mòire (SnBM), a community-owned landlord in the Western Isles, have announced their intention to stand down following a review that characterized the organisation's management as "dire." SnBM manages several businesses and oversees the 93,000-acre South Uist Estate.
Concerns Raised by External Review
In November, it was revealed that a review conducted by Royal Bank of Scotland specialists Mentor had identified significant concerns regarding SnBM's governance. The review was commissioned by South Uist Renewable Energy (Sure), a subsidiary of SnBM, after three directors resigned from the organisation.
Subsidiary Directors Also to Resign
The directors of Sure are also set to stand down at an extraordinary general meeting (EGM) scheduled for a future date. This decision follows discussions with the local authority, Comhairle nan Eilean Siar.
Interim Board Proposed
It has been proposed that an interim board be established, including councillors representing South Uist, Eriskay, and Benbecula. This transitional arrangement aims to address governance and operational challenges across the organisation.
"We feel that putting in place this transitional arrangement is the best way to progress the actions needed to strengthen governance and operations across all parts of the organisation."
"Having an interim board focused on the delivery of these essential actions will leave a good foundation for a new set of directors to come into post and be free to drive forward the strategic vision for the organisation's future."
Engagement with Lenders and Insurers
Both SnBM and Sure have indicated their intention to work closely with lenders and insurers to provide assurances that changes are being implemented. A formal election of directors is anticipated to take place in June.
Mentor's Report on Governance
Mentor's report from the previous year described SnBM's governance as "simply dire." This assessment was a catalyst for the current restructuring efforts within the organisation.
