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

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. This article investigates the practical usefulness of governance solutions for corporatized entities. Case studies, including participant observation, were used to collect empirical detail. Face-to-face interaction with practitioners provided insights into 'what works' in this context. Cross-country learning is supported by data drawn from organizations in England and Canada, respectively. 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.