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Field Fisher Waterhouse has advised staff at three London councils on the creation of Three Borough Mutual (3BM), a new employee-led mutual joint venture (ELM) providing school support services to the London Borough of Hammersmith and Fulham, the City of Westminster and the Royal Borough of Kensington and Chelsea (together the Councils).
3BM has been structured as a company limited by shares, with ownership being divided between Council staff employees and a private sector partner, Prospects Services, which will play a key role in helping 3BM transform into a thriving employee-led mutual company. The employees own the majority of the shares, which are held through an employee benefit trust. The Councils will not hold a stake in 3BM but will contract services from 3BM.
The ELM project is one of the key pathfinder projects sponsored by the Cabinet Office Mutuals Support Programme and will be closely watched by other parts of local government keen to explore the benefits of commercialising and mutualising parts of their service provision.
The Field Fisher Waterhouse team was led by corporate partner Neil Palmer and comprised employee ownership expert Graeme Nuttall, assisted by senior associate Guy Burman and associate Jennifer Martin. Partner James Buckingham and solicitor Sean Brogan provided commercial law advice.
Neil Palmer said:
"We were delighted to acted for 3BM on its spin out from the London Borough of Hammersmith and Fulham. The commitment and humour of the staff made this a very special project. They have taken a huge step to mutualise.
"3BM has all the necessary ingredients to make a success of this new venture and we wish them well."
Trowers & Hamlins advised the Council.
For further information, please contact:
Ibrahim Kamara, PR Manager, Field Fisher Waterhouse LLP on 020 7861 4120