Section 31
1(1)The regulator consists of a number of members (but not more than 5) appointed by the Secretary of State.E+W
(2)One of the members must be appointed as chairman and another as deputy chairman.
(3)The deputy chairman need not be appointed before the end of the period of six months beginning with the establishment of the regulator.
2(1)A person holds and vacates office as a member in accordance with the terms of his appointment.E+W
(2)But—
(a)he may at any time resign his office by giving notice to the Secretary of State,
(b)the Secretary of State may at any time remove him from office on the ground of incapacity or misbehaviour.
(3)A person must not be appointed as a member for a period of more than four years.
(4)A person who ceases to be a member is eligible for re-appointment.
3(1)The regulator must pay to the chairman—E+W
(a)such remuneration, and
(b)such travelling and other allowances,
as the Secretary of State may determine.
(2)The regulator must pay to the members (other than the chairman) such travelling and other allowances as the Secretary of State may determine.
(3)In the case of any such person who holds or has held office as chairman as the Secretary of State may determine, the regulator must pay—
(a)such pension, allowance or gratuity to or in respect of him, or
(b)such contributions or payments towards provision for such a pension, allowance or gratuity,
as the Secretary of State may determine.
4E+WThe regulator may, after consulting the Minister for the Civil Service as to numbers and terms and conditions of service, employ such staff as the regulator may determine.
5(1)Sub-paragraph (2) applies where—E+W
(a)a person is an active or deferred member of a scheme under section 1 of the Superannuation Act 1972 (c. 11), and
(b)he is appointed as chairman.
(2)The Minister for the Civil Service may determine that the person's term of office as chairman must be treated for the purposes of the scheme as service in the employment by reference to which he is a member (whether or not any benefits are payable by virtue of paragraph 3(3)).
(3)The regulator must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as he may determine in respect of any increase attributable to sub-paragraph (2) or (3) in the sums payable out of money provided by Parliament under the Superannuation Act 1972.
6(1)The regulator may regulate its own procedure and make any arrangements it considers appropriate for the discharge of its functions.E+W
(2)The validity of any act of the regulator is not affected by any vacancy among the members or by any defect in the appointment of any member.
7E+WAnything which the regulator is authorised or required to do may be done by—
(a)the chairman or deputy chairman or any committee,
(b)any member of the staff,
if authorised by the regulator (generally or specifically) for that purpose.
8(1)The regulator may do anything which appears to it to be necessary or expedient for the purposes of or in connection with the exercise of its functions.E+W
(2)That includes in particular—
(a)acquiring and disposing of property,
(b)entering into contracts,
(c)accepting gifts of property,
and co-operating with other public authorities.
9(1)The regulator may with the consent of the Secretary of State borrow money temporarily by way of overdraft, but may not otherwise borrow money.E+W
(2)The regulator may conduct, commission or assist the conduct of research.
10E+WThe Secretary of State may make contributions towards the regulator's expenses.
11(1)As soon as possible after the end of each financial year, the regulator must prepare an annual report on how it has exercised its functions during the year.E+W
(2)The regulator must—
(a)lay a copy of the report before Parliament, and
(b)once it has done so, send a copy of it to the Secretary of State.
(3)The regulator must in respect of each financial year prepare a report which provides an overall summary of the accounts of NHS foundation trusts.
(4)The report must be prepared as soon as possible after the regulator has received the accounts of all NHS foundation trusts for the relevant financial year.
(5)The regulator must—
(a)lay a copy of the report before Parliament, and
(b)once it has done so, send a copy of it to the Secretary of State.
(6)The regulator must provide the Secretary of State with such other reports and information relating to the exercise of the regulator's functions as he may require.
12(1)The regulator must keep accounts in such form as the Secretary of State may direct.E+W
(2)The regulator must prepare in respect of each financial year annual accounts in such form as the Secretary of State may direct.
(3)The regulator must send copies of the annual accounts to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the accounts relate as the Secretary of State may direct.
(4)The Comptroller and Auditor General must examine, certify and report on the annual accounts and must lay copies of them and of his report before Parliament.
(5)In paragraph 11 and this paragraph, “financial year” means—
(a)the period beginning with the establishment of the regulator and ending with the next 31st March, and
(b)each successive period of twelve months beginning with 1st April.
13E+WThe regulator must respond in writing to any recommendation which—
(a)is made by a Committee of either House of Parliament, or a Committee of both Houses, and
(b)relates to the exercise by the regulator of its functions.
14E+WThe application of the regulator's seal must be authenticated by the signature of the chairman or deputy chairman or of any member of the staff who has been authorised by the regulator (whether generally or specifically) for that purpose.
15E+WA document purporting to be duly executed under the regulator's seal or to be signed on its behalf must be received in evidence and, unless the contrary is proved, taken to be so executed or signed.
16(1)The regulator must not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.E+W
(2)The regulator's property must not be regarded as property of, or property held on behalf of, the Crown.
(3)The regulator must exercise its functions effectively, efficiently and economically.