The Council has formal controls over the Company and also significant means of informal influence. It also has a service level agreement with the Company.

The Company has freedom to act to use the resources available to it to decide on priorities to achieve the object of regeneration in Tendring.

The principal controls which exist and are enshrined in the Memorandum and Articles of Association of the Company are as follows:

• The Council remains responsible for the strategic direction of regeneration in the District and has retained its statutory powers.
• Six Directors are TDC Members.
• The Council can appoint/dismiss TDC Directors
• The Memorandum and Articles of Association can be changed by the Council. The Company cannot change them without the Council's agreement.
• The Council can decide to 'wind-up' the Company.
• The Council is a major (primary) funder of the Company and can commission work from the Company.

But within this framework the Company has considerable freedom to act. See "So what does the Company have freedom to do?"

The Council's rights in relation to the Company as its owner and sole Member are contained in Section 3 of the Articles of Association. Article 3.6 sets out a requirement for the Company to obtain the written consent of the Council relating to a number of business and financial transactions before a decision by the Company can be effective.

In addition to the formal control mechanisms set out above the Council has significant influence over the Company through its six Directors; through the fact that it has agreed to pay the £1.26million allocated to the Company in instalments; and through the fact that future decisions by the Council to commission work by the Company will be taken in the light of its performance up to that point.

The Service Level Agreement between the Council and the Company sets out the basis of the relationship between them, including commitments by each party to the other. It is designed to go further than the basic legal requirements of company documentation and to clarify and strengthen the relationship.