Council dismisses complaint over leisure company director’s conduct

South Kesteven District Council has dismissed a complaint made against Councillor Adam Stokes regarding an “apparent failure” to declare his private shareholdings with two companies.

The Grantham & Stamford Labour Party had called for an investigation into the Portfolio Holder for Finance & Resources on SKDC.

The party had alleged that when Councillor Stokes was appointed as director of the council-owned Leisure SK company, he did not disclose financial interests in two companies they said “could potentially be directly the beneficiary of council funds distributed by this new company”.

They also alleged he had failed to update the register of interests at both SKDC and Lincolnshire County Council when he became a shareholder in the companies.

SKDC has now said it will not be taking any action against the councillor, who also last week was re-elected into his seat at County Council level.

In their investigation, the council found Councillor Stokes:

• Had declared on his register of interests that he is a director of the two companies. “As he is not a paid director his declaration goes beyond what is required,” said the council.
• Received no dividends from his shareholdings in the companies, which are of no personal financial value to him.
• Was a non-remunerated director of LeisureSK Ltd.

A spokesperson for SKDC said: “There has been no breach of the council code of conduct and the complaint has not been upheld.”

Following the findings, Councillor Stokes said: “I am grateful that this matter has been dealt with quickly and efficiently.

“I was never in any doubt that the complaint was completely without foundation.”