(1)If, in the case of a trust scheme—
(a)such arrangements as are required by section 16(1) or 17(2) to be made have not been made, or
(b)arrangements required by section 16(1) or 17(2) to be implemented, or the appropriate rules, are not being implemented,
sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.
(2)If, in the case of a company which is a trustee of a trust scheme—
(a)such arrangements as are required by section 18(1) or 19(2) to be made have not been made, or
(b)arrangements required by section 18(1) or 19(2) to be implemented, or the appropriate rules, are not being implemented,
sections 3 and 10 apply to the company.
(3)No such arrangements or rules as are required by section 16(1) or 17(2), or any corresponding provisions in force in Northern Ireland, to be made or implemented shall be treated as effecting an alteration to the scheme in question for the purposes of section 591B of the Taxes Act 1988.
(4)Regulations may make provision for determining the time by which—
(a)such arrangements (or further arrangements) as are referred to in section 16(1), 17(2), 18(1) or 19(2) are required to be made, and
(b)trustees or directors are required to be selected in pursuance of the appropriate rules.
(5)Regulations may make provision for determining when any approval under the statutory consultation procedure—
(a)of the appropriate rules, or
(b)of arrangements for selecting the trustees of a scheme, or the directors of a company, given on a proposal by the employer,
is to cease to have effect.
(6)The Secretary of State may by regulations modify sections 16 to 20 and this section in their application to prescribed cases.
(7)In sections 16 to 20 and this section, “the statutory consultation procedure” means the prescribed procedure for obtaining the views of members of schemes.
(8)For the purposes of this and those sections—
(a)approval of the appropriate rules, or of arrangements, under the statutory consultation procedure must be given by—
(i)the active and pensioner members of the scheme, and
(ii)if the trustees so determine, such deferred members of the scheme as the trustees may determine,
taken as a whole, and
(b)references to the approval of the appropriate rules, or of arrangements under section 17 or 19, by any persons under the statutory consultation procedure are to prescribed conditions in respect of those rules or, as the case may be, arrangements being satisfied in the case of those persons in pursuance of the procedure, and those conditions may relate to the extent to which those persons have either endorsed, or not objected to, the rules or, as the case may be, arrangements.