Hello Lauren,
I’m not a lawyer so you should check my interpretation of the law if you are unsure of my views.
However, I think the relevant law is the Local Government Act 1972, as amended by the Local Democracy, Economic Development and Construction Act 2009. The text below is my merger of the two pieces of legislation.
My understanding is that you can’t be an Hon Alderwoman of the council on which you are elected - so, in this case, the person could be made Hon Alderwoman of Derbyshire County Council ( but not Chesterfield BC).
As I say, I’m not a lawyer but I hope this is helpful.
Paul Millward
LGA 72 249. – (1) A principal council may, by a resolution passed by not less than two-thirds of the members voting thereon at a meeting of the council specially convened for the purpose with notice of the object, confer the title of honorary aldermen or honorary alderwomen on persons who have, in the opinion of the council, rendered eminent services to the council as past members of that council, but who are not then councillors of the council.
(2) No honorary alderman or honorary alderwoman shall, while serving as a councillor of the council, be entitled to be addressed as alderman or alderwoman or to attend or take part in any civic ceremonies of the council as an alderman or alderwoman.
(3) Services rendered to the council of an existing county, county borough, borough or urban or rural district the area of which becomes wholly or partly included in a new county or district shall be treated for the purposes of subsection (1) above as services rendered to the council of the new county or district, as the case may be.
(4) An honorary alderman or honorary alderwoman of a principal council may attend and take part in such civic ceremonies as the council may from time to time decide, but shall not, as such, have the right
(a) to attend meetings of the council or a committee of the council (including a joint committee
upon which they are represented) ; or
(b) to receive any such allowances or other payments as are payable under sections 173 to 176
above.
(4A) A principal council may spend such reasonable sum as they think fit for the purpose of presenting an address, or a casket containing an address, to a person on whom they have conferred the title of honorary alderman or honorary alderwoman.