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(1)This section has effect in relation to any designated institution, other than—
(a)an institution conducted by a company, or
(b)an institution conducted by an unincorporated association if the order designating the institution provides for its exemption.
(2)For each institution in relation to which this section has effect there shall be—
(a)an instrument providing for the constitution of a governing body of the institution (to be known as the instrument of government), and
(b)an instrument in accordance with which the institution is to be conducted (to be known as the articles of government),
each of which meets the requirements of subsection (3) below.
(3)Those requirements are that the instrument—
(a)was in force when the designation took effect and is approved for the purposes of this section by the Secretary of State,
(b)is made in pursuance of a power under a regulatory instrument, or is made under subsection (5) below, and is approved for the purposes of this section by the Secretary of State, or
(c)is made under subsection (6) below.
(4)In this section “regulatory instrument”, in relation to an institution, means any instrument of government or articles of government and any other instrument relating to or regulating the institution.
(5)Where there is no such power as is mentioned in subsection (3)(b) above to make the instrument, it may be made by the governing body of the institution and an instrument made by them under this subsection may replace wholly or partly any existing regulatory instrument.
(6)The Secretary of State may by order make either of the instruments referred to in subsection (2) above and any instrument made by him under this subsection may replace wholly or partly any existing regulatory instrument.
(7)If an instrument approved by the Secretary of State for the purposes of this section—
(a)falls within subsection (3)(a) above or was made in pursuance of a power under a regulatory instrument and, apart from this section, there is no power to modify it, or
(b)was made by the governing body of the institution,
the instrument may be modified by the governing body.
(8)The Secretary of State may by order modify either of the instruments referred to in subsection (2) above and no instrument approved by him for the purposes of this section may be modified by any other person without the Secretary of State’s consent.
(9)Before exercising any power under subsection (6) or (8) above in relation to any instrument the Secretary of State shall consult—
(a)the governing body of the institution, and
(b)where there is such a power as is mentioned in subsection (3)(b) above to make or, as the case may be, modify the instrument and the persons having that power are different from the governing body of the institution, the persons having the power,
so far as it appears to him to be practicable to do so.
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