Housing Act 1974

20 Corporation's power to act for protection of registered 1965 Act associations

(1) Where the Corporation are satisfied, as the result of an inquiry or an audit under section 19 above, that there has been in the administration of a registered 1965 Act association any misconduct or mismanagement, the Corporation may do all or any of the following, namely,—

(a) by order remove any member of the committee of the association, or any officer, agent or servant of the association, who has been responsible for or privy to the misconduct or mismanagement or has by his conduct contributed to it or facilitated it;

(b) order any bank or other person who holds money or securities on behalf of the association not to part with the money or securities without the approval of the Corporation;

(c) by order restrict the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the association without the approval of the Corporation.

(2) The Corporation may also by order remove a member of the committee of a registered 1965 Act association where that member—

(a) is a bankrupt or, in Scotland, is insolvent within the meaning of paragraph 9(2) of Schedule 3 to the [1970 c. 35.] Conveyancing and Feudal Reform (Scotland) Act 1970 or is incapable of acting by reason of mental disorder within the meaning of the [1959 c. 72.] Mental Health Act 1959 or the [1960 c. 61.] Mental Health (Scotland) Act 1960 ;

(b) has not acted ; or

(c) cannot be found or does not act and his absence or failure to act impedes the committee's proper management of the association's affairs.

(3) The Corporation may by order appoint a person to be a member of the committee of a registered 1965 Act association (whether or not he is a member of the association and, if he is not, notwithstanding that the rules of the association restrict membership of the committee to members of the association)—

(a) in place of a member of the committee removed by them under this section or otherwise;

(b) where there are no members of the committee; or

(c) where the Corporation are of opinion that it is necessary for the proper management of the association's affairs to have an additional member of its committee.

(4) A person appointed to be a member of the committee of a registered 1965 Act association under subsection (3) above shall hold office for such period and on such terms as the Corporation may specify and, on the expiry of any such period, the Corporation may renew the appointment for such period as they may specify; but nothing in this subsection shall prevent any such person from retiring from the appointment in accordance with the rules of the association.

(5) Any member of the committee of a registered 1965 Act association or any officer, agent or servant of the association who is ordered by the Corporation to be removed under subsection (1)(a) or subsection (2) above may appeal against the order to the High Court or, as the case may be, the Court of Session.

(6) Before making an order under subsection (1)(a) or subsection (2) above the Corporation shall give not less than 14 days' notice of their intention to do so—

(a) to the person whom they intend to remove, and

(b) to the registered 1965 Act association concerned,

and any such notice may be given by post and, if so given to the person whom the Corporation intend to remove, may be addressed to the recipient's last known address in the United Kingdom.

(7) If any person contravenes an order under subsection (1)(b) above, he shall be liable on summary conviction to a fine not exceeding £400, or to imprisonment for a term not exceeding 3 months, or to both ; but no proceedings for an offence punishable under this subsection shall be instituted in England and Wales except by or with the consent of the Corporation.