Education Reform Act 1988

Chapter II E+W+S Reorganisation of Provision and Funding of Higher Education

Modifications etc. (not altering text)

C1 Pt. II Ch. II (ss. 121-138) modified (temp. until 31. 3. 1993) (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 64(1); S.I. 1992/831, art. 2, Schs.1 and 3.

The higher education corporations E+W

121 Initial incorporation of higher education institutions maintained by [F1 local authorities]. E+W

F2 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) References in this Part of this Act to courses of advanced further education are references to courses designated by Schedule 2 to the M1 Education (Schools and Further Education) Regulations 1981 as courses of advanced further education.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F2 S. 121(1)-(3) repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 7

Marginal Citations

M1 S.I. 1981/1086.

122 Orders incorporating higher education institutions maintained by [F1 local authorities] [F3 in Wales]. E+W

(1) Subject to subsection (2) below, if at any time it appears to the Secretary of State, in the case of any institution maintained by a [F1 local authority] [F4 in Wales], that its full-time equivalent enrolment number for courses of higher education exceeds 55 per cent. of its total full-time equivalent enrolment number he may make an order under this section with respect to that institution.

F5 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) An order under this section with respect to any institution shall make provision for the establishment of a body corporate for the purpose of conducting that institution as from the transfer date applicable in relation to that body corporate.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F3 Words in s. 122 heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 2(a); S.I. 2018/1226, reg. 4(o)

F4 Words in s. 122(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 2(b); S.I. 2018/1226, reg. 4(o)

F5 S. 122(2)-(5) repealed (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 93, Sch. 8 Pt. I para. 31, Sch. 9; S.I. 1992/831, art. 2, Sch. 1

Modifications etc. (not altering text)

C2 S. 122 applied by S.I. 1991/1391, art. 2

[F6 122ZA Orders for further education corporations in England to become higher education corporations E+W

(1) The Secretary of State may by order provide for a further education corporation in England to become a higher education corporation.

(2) The first members of the higher education corporation are to be appointed by the governing body of the further education corporation.

(3) On such date as may be specified in the order—

(a) the corporation ceases to be a further education corporation and becomes a higher education corporation, and

(b) any member of the further education corporation who is not re-appointed by the governing body as a member of the higher education corporation ceases to hold office.]

Textual Amendments

F6 S. 122ZA inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 3; S.I. 2018/1226, reg. 4(o)

[F7 122A Orders transferring further education corporations [F8 in Wales] to higher education sector. E+W

(1) The Secretary of State may by order provide for the transfer of a further education corporation [F9 in Wales] to the higher education sector if it appears to him that the full-time equivalent enrolment number of the institution conducted by the corporation for courses of higher education exceeds 55 per cent. of its total full-time equivalent enrolment number.

(2) Where an order under this section is made in respect of a further education corporation, sections 124A and 125 of this Act shall have effect as if—

(a) on the date the order has effect, the corporation were established as a higher education corporation, and

(b) the Secretary of State were the appointing authority in relation to the first members of the higher education corporation.

(3) In determining in pursuance of subsection (2)(b) above the number of members to appoint within each variable category of members, the Secretary of State shall secure that at least half of all the members of the higher education corporation as first constituted are independent members; and in this subsection “variable category of members” and “independent members” have the same meaning as in Schedule 7A to this Act.

(4) On such date as may be specified in the order the corporation shall cease to be a further education corporation and become a higher education corporation and any member of the further education corporation who is not re-appointed by the Secretary of State in pursuance of subsection (2)(b) above shall cease to hold office on that date.]

Textual Amendments

F7 S. 122A inserted (1.4.1993) by Further and Higher Education Act 1992 (c. 13), s. 74(1); S.I. 1992/831, art. 2, Sch. 3

F8 Words in s. 122A heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 4(a); S.I. 2018/1226, reg. 4(o)

F9 Words in s. 122A(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 4(b); S.I. 2018/1226, reg. 4(o)

123 Provisions supplementary to sections 121 [F10 to 122A]. E+W

(1) References in this Act to a higher education corporation are references to a body corporate established under section 121 or 122 of this Act [F11 or which has become a higher education corporation by virtue of section [F12 122ZA or] 122A of this Act].

(2) In this Act “transfer date” means, in relation to a higher education corporation, the date appointed under section 126 of this Act in relation to the transfer under that section of property, rights and liabilities to that corporation.

[F13 (3) Schedule 7 to this Act has effect with respect to each higher education corporation [F14 in Wales] established before the appointed day (within the meaning of section 124A of this Act) unless an instrument of government for the corporation made under that section has effect.

(4) A higher education corporation [F15 in Wales] established under section 122 of this Act on or after that day for the purpose of conducting any institution shall be established initially under the name given in the order under that section establishing the corporation.]

Textual Amendments

F10 Words in s. 123 heading substituted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 5(a); S.I. 2018/1226, reg. 4(o)

F11 Words in s. 123(1) added (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 32(a); S.I. 1992/831, art. 2, Sch.3.

F12 Words in s. 123(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 5(b); S.I. 2018/1226, reg. 4(o)

F13 S. 123(3)(4) substituted for s. 123(3) (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 32(b); S.I. 1992/831, art. 2, Sch. 1.

F14 Words in s. 123(3) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 5(c); S.I. 2018/1226, reg. 4(o)

F15 Words in s. 123(4) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 5(c); S.I. 2018/1226, reg. 4(o)

[F16 123A Principal powers of a higher education corporation in England E+W

(1) A higher education corporation in England has power—

(a) to provide higher education;

(b) to provide further education;

(c) to provide secondary education suitable to the requirements of persons who have attained the age of 14 years;

(d) to provide education which is secondary education by virtue of section 2(2B) of the Education Act 1996 (definition of secondary education);

(e) to participate in the provision of secondary education at a school; and

(f) to carry out research and to publish the results of the research or any other material arising out of or connected with it in such manner as the corporation think fit.

(2) A higher education corporation in England may not provide education of a kind specified in subsection (1)(c) or (d) unless they have consulted such local authorities as they consider appropriate.

Textual Amendments

F16 SS. 123A, 123B inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 6; S.I. 2018/1226, reg. 4(o)

123B Supplementary powers of a higher education corporation in England E+W

(1) A higher education corporation in England has power to do anything which appears to the corporation to be necessary or expedient for the purpose of, or in connection with, the exercise of any of their principal powers.

(2) The corporation's “principal powers” are the powers conferred by section 123A(1).]

Textual Amendments

F16 SS. 123A, 123B inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 6; S.I. 2018/1226, reg. 4(o)

124 Powers of a higher education corporation [F17 in Wales]. E+W

(1) A higher education corporation [F18 in Wales] shall have power—

(a) to provide higher education;

(b) to provide further education; and

[F19 (ba) to provide secondary education [F20 suitable to the requirements of persons who have attained the age of fourteeen years],

(bb) to provide education which is secondary education by virtue of section 2(2B) of the Education Act 1996 (definition of secondary education),

(bc) to participate in the provision of secondary education at a school,]

(c) to carry out research and to publish the results of the research or any other material arising out of or connected with it in such manner as the corporation think fit.

[F21 (1A) A higher education corporation [F22 in Wales] may not provide education of a kind specified in subsection (1)(ba) or (bb) above unless they have consulted such [F1 local authorities] as they consider appropriate.]

(2) A higher education corporation [F23 in Wales] shall also have power to do anything which appears to the corporation to be necessary or expedient for the purpose of or in connection with the exercise of any of the powers conferred on the corporation by subsection (1) above, including in particular power—

(a) to conduct an educational institution for the purpose of carrying on activities undertaken in exercise of any of those powers and, in particular, to assume the conduct as from the transfer date applicable in relation to the corporation of the institution in respect of which the corporation is established and for that purpose to receive any property, rights and liabilities transferred to the corporation under section 126 of this Act;

(b) to provide facilities of any description appearing to the corporation to be necessary or expedient for the purposes of or in connection with carrying on any such activities (including boarding accommodation and recreational facilities for students and staff and facilities to meet the needs of [F24 students having learning difficulties F25 . . .]);

(c) to supply goods and services;

(d) to acquire and dispose of land and other property;

(e) to enter into contracts, including in particular—

(i) contracts for the employment of teachers and other staff for the purposes of or in connection with carrying on any such activities; and

(ii) contracts with respect to the carrying on by the corporation of any such activities;

[F26 (f) to form, participate in forming or invest in a company for the purpose of carrying on any such activities;

(fa) to form, participate in forming or otherwise become a member of a charitable incorporated organisation [F27 (within the meaning of Part 11 of the Charities Act 2011)] for the purpose of carrying on any such activities;]

(g) to borrow such sums as the corporation think fit for the purposes of carrying on any activities they have power to carry on or meeting any liability transferred to them under section 126 of this Act and, in connection with such borrowing, to grant any mortgage, charge or other security in respect of any land or other property of the corporation;

(h) to invest any sums not immediately required for any of the purposes mentioned in paragraph (g) above;

(i) to accept gifts of money, land or other property and apply it, or hold and administer it on trust for, any of those purposes; and

(j) to do anything incidental to the conduct of an educational institution providing higher or further education.

(3) The power under subsection (2)(j) above includes in particular power—

(a) to found scholarships or exhibitions; and

(b) to make grants and give prizes.

F28 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F29 (5) For the purposes of subsection (2)(b) a person has a learning difficulty if—

(a) he has a significantly greater difficulty in learning than the majority of persons of his age, or

(b) he has a disability which either prevents or hinders him from making use of facilities of a kind generally provided by institutions within the higher education sector for persons of his age.

(6) But a person is not to be taken to have a learning difficulty solely because the language (or form of language) in which he is or will be taught is different from a language (or form of language) which has at any time been spoken in his home.]

[F30 (7) The reference in this section to investing in a company includes a reference to becoming a member of the company and to investing in it by the acquisition of any assets, securities or rights or otherwise.]

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F17 Words in s. 124 heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 7(a); S.I. 2018/1226, reg. 4(o)

F18 Words in s. 124(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 7(b); S.I. 2018/1226, reg. 4(o)

F19 S. 124(1)(ba)-(bc) inserted (1.4.2001) by 2000 c. 21, s. 142(2)(a); S.I. 2001/654, art. 2(2), Sch. Pt. II; S.I. 2001/1274, art. 2(1), Sch. Pt. I

F20 Words in s. 124(1)(ba) substituted (1.10.2002 (E) and 19.12.2002 (W.)) by 2002 c. 32, s.215(1), Sch. 21 para. 8 (with ss. 210(8), 214(4)); S.I. 2002/2439, art. 3; S.I. 2002/3185, art. 4, Sch. Pt. I

F21 S. 124(1A) inserted (1.4.2001) by 2000 c. 21, s. 142(2)(b); S.I. 2001/654, art. 2(2), Sch. Pt. II; S.I. 2001/1274, art. 2(1), Sch. Pt. I

F22 Words in s. 124(1A) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 7(b); S.I. 2018/1226, reg. 4(o)

F23 Words in s. 124(2) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 7(b); S.I. 2018/1226, reg. 4(o)

F24 Words in s. 124(2)(b) substituted (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 33(a); S.I. 1992/831, art. 2, Sch. 3.

F25 Words in s. 124(2)(b) repealed (28.7.2000 insofar as consequential on ss. 130, 131, Sch. 8 of the amending Act and otherwise 1.4.2001) by 2000 c. 21, ss. 149, 153, 154, Sch. 9 para. 15(a), Sch. 11; S.I. 2001/654, art. 2(2), Sch. Pt. II; S.I. 2001/1274, art. 2(1), Sch. Pt. I

F26 S. 124(2)(f)(fa) substituted for s. 124(2)(f) (23.10.2007) by Further Education and Training Act 2007 (c. 25), ss. 26(2), 32(1) (with s. 26(4))

F27 Words in s. 124(2)(fa) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 49 (with s. 20(2), Sch. 8)

F28 S. 124(4) repealed (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 33(b), Sch. 9; S.I. 1992/831, art. 2, Sch. 3.

F29 S. 124(5)(6) inserted (28.7.2000 insofar as consequential on ss. 130, 131, Sch. 8 of the amending Act and otherwise 1.4.2001) by 2000 c. 21, ss. 149, 154, Sch. 9 para. 15(c); S.I. 2001/654, art. 2(2), Sch. Pt. II; S.I. 2001/1274, art. 2(1), Sch. Pt. I

F30 S. 124(7) inserted (23.10.2007) by Further Education and Training Act 2007 (c. 25), ss. 26(3), 32(1)

[F31 124ZA Instrument of government of higher education corporations in England E+W

(1) For each higher education corporation in England there is to be an instrument providing for the constitution of the corporation (to be known as the instrument of government).

(2) A higher education corporation in England may vary, replace or revoke the instrument of government.

(3) The corporation must not make changes to the instrument of government that (but for section 125A) would result in the corporation ceasing to be a charity.

Textual Amendments

F31 SS. 124ZA, 124ZB inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 8; S.I. 2018/1226, reg. 4(o)

124ZB Proceedings etc. of higher education corporations in England E+W

(1) The validity of any proceedings of a higher education corporation in England, or of a committee of such a corporation, is not affected by—

(a) a vacancy among the members, or

(b) a defect in the appointment or nomination of a member.

(2) The application of the seal of a higher education corporation in England must be authenticated by the signature of—

(a) the chair of the corporation or some other person authorised for that purpose by the corporation, and

(b) any other member of the corporation.

(3) A document purporting to be duly executed under the seal of a higher education corporation in England or signed on the corporation's behalf—

(a) is to be received in evidence, and

(b) is to be taken to be executed or signed in that way, unless the contrary is shown.

(4) The members for the time being of a higher education corporation in England are to be known as the board of governors of the institution conducted by the corporation.]

Textual Amendments

F31 SS. 124ZA, 124ZB inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 8; S.I. 2018/1226, reg. 4(o)

[F32 124A Constitution and conduct of [F33 higher education corporations in Wales]. E+W

(1) For each higher education corporation [F34 in Wales] established on or after the appointed day there shall be an instrument (to be known as the instrument of government) providing for the constitution of the corporation and making such other provision as is required under this section.

(2) The initial instrument of government of a higher education corporation [F35 in Wales] established on or after that day shall be such as is prescribed by an order of the Privy Council.

(3) An order of the Privy Council may—

(a) make an instrument of government of any higher education corporation [F36 in Wales] with respect to which Schedule 7 to this Act has effect or make a new instrument of government of any higher education corporation [F36 in Wales] in place of the instrument prescribed under subsection (2) above; or

(b) modify an instrument made in pursuance of this subsection.

(4) An instrument of government of a higher education corporation [F37 in Wales]—

(a) shall comply with the requirements of Schedule 7A to this Act; and

(b) may make any provision authorised to be made by that Schedule and such other provision as may be necessary or desirable.

(5) An order under subsection (2) or (3) above may make such provision as appears to the Privy Council necessary or desirable to secure continuity in the government of the institution or institutions to which it relates.

(6) The validity of any proceedings of a higher education corporation [F38 in Wales] for which an instrument of government has effect, or of any committee of such a corporation, shall not be affected by a vacancy amongst the members or by any defect in the appointment or nomination of a member.

(7) Every document purporting to be an instrument made or issued by or on behalf of a higher education corporation [F39 in Wales] for which an instrument of government has effect and to be duly executed under the seal of the corporation, or to be signed or executed by a person authorised by the corporation to act in that behalf, shall be received in evidence and be treated, without further proof, as being so made or issued unless the contrary is shown.

(8) In relation to a higher education corporation [F40 in Wales] for which an instrument of government has effect the members of the corporation for the time being shall be known as the board of governors of the institution conducted by the corporation.

(9) The Secretary of State may by order amend or repeal any of paragraphs 3 to 5 and 11 of Schedule 7A to this Act.

(10) In this section and section 124C “the appointed day” means the day appointed under section 94 of the Further and Higher Education Act 1992 for the commencement of section 71 of that Act.

Textual Amendments

F32 Ss. 124A-124D inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 71(1); S.I. 1992/831, art. 2, Sch. 1

F33 Words in s. 124A heading substituted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(a); S.I. 2018/1226, reg. 4(o)

F34 Words in s. 124A(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F35 Words in s. 124A(2) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F36 Words in s. 124A(3)(a) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F37 Words in s. 124A(4) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F38 Words in s. 124A(6) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F39 Words in s. 124A(7) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

F40 Words in s. 124A(8) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 9(b); S.I. 2018/1226, reg. 4(o)

124B Accounts. E+W

(1) It shall be the duty of each corporation—

(a) to keep proper accounts and proper records in relation to the accounts; and

(b) to prepare in respect of each financial year of the corporation a statement of accounts.

(2) The statement shall—

(a) give a true and fair account of the state of the corporation’s affairs at the end of the financial year and of the corporation’s income and expenditure in the financial year; and

(b) [F41 in the case of a higher education corporation in Wales,] comply with any directions given by [F42 the Commission for Tertiary Education and Research] as to the information to be contained in the statement, the manner in which the information is to be presented or the methods and principles according to which the statement is to be prepared.

(3) The corporation shall supply a copy of the statement to any person who asks for it and, if the corporation so requires, pays a fee of such amount not exceeding the cost of supply as the corporation thinks fit.

(4) The accounts (including any statement prepared under this section) shall be audited by persons appointed in respect of each financial year by the corporation.

F43 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F44 (5A) A corporation in Wales shall consult, and take into account any advice given by, the Auditor General for Wales before appointing any auditor under subsection (4) above in respect of their first financial year.]

(6) No person shall be qualified to be appointed auditor under [F45 subsection (4) above] except—

(a) an individual, or firm, eligible for appointment as a [F46 statutory auditor under Part 42 of the Companies Act 2006];

(b) a member of the Chartered Institute of Public Finance and Accountancy; or

(c) a firm each of the members of which is a member of that institute.

(7) In this section, in relation to a corporation—

• “the first financial year” means the period commencing with the date on which the corporation is established and ending with the second 31st March following that date; and

• “financial year” means that period and each successive period of twelve months.

Textual Amendments

F32 Ss. 124A-124D inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 71(1); S.I. 1992/831, art. 2, Sch. 1

F41 Words in s. 124B(2)(b) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 10; S.I. 2018/1226, reg. 4(o)

F42 Words in s. 124B(2)(b) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(3) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F43 S. 124B(5) omitted (1.4.2015) by virtue of Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 21; S.I. 2015/841, art. 3(x)

F44 S. 124B(5A) inserted (1.4.2005) by Public Audit (Wales) Act 2004 (c. 23), s. 73, Sch. 2 para. 9(1)(3); S.I. 2005/558, art. 2, Sch. 1

F45 Words in s. 124B(6) substituted (1.4.2005) by Public Audit (Wales) Act 2004 (c. 23), s. 73, Sch. 2 para. 9(1)(4); S.I. 2005/558, art. 2, Sch. 1

F46 Words in s. 124B(6)(a) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 1(kk)(i) (with arts. 6, 11, 12)

Modifications etc. (not altering text)

C3 S. 124B(7): power to exclude conferred (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 78(2); S.I. 1992/831, art. 2, Sch. 1

124C Initial and transitional arrangements [F47 : Wales]. E+W

(1) The Secretary of State shall be the appointing authority in relation to the appointment of the first members of a corporation [F48 in Wales] established on or after the appointed day and, in determining the number of members to appoint within each variable category of members, he shall secure that at least half of all the members of the corporation as first constituted are independent members.

(2) In subsection (1) above “variable category of members” and “independent members” have the same meaning as in Schedule 7A to this Act.

(3) The following provisions apply where an instrument of government is made under section 124A of this Act for a higher education corporation [F49 in Wales] with respect to which Schedule 7 to this Act has effect.

(4) The instrument shall apply, subject to subsection (5) below, as if the persons who, immediately before its coming into effect, were the members of the corporation had been appointed in accordance with the instrument for the residue of the term of their then subsisting appointment.

(5) Any local authority nominee, teacher nominee, general staff nominee or student nominee (within the meaning, in each case, of Schedule 7 to this Act) shall cease to hold office.

Textual Amendments

F32 Ss. 124A-124D inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 71(1); S.I. 1992/831, art. 2, Sch. 1

F47 Word in s. 124C heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 11(a); S.I. 2018/1226, reg. 4(o)

F48 Words in s. 124C(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 11(b); S.I. 2018/1226, reg. 4(o)

F49 Words in s. 124C(3) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 11(c); S.I. 2018/1226, reg. 4(o)

124D Exercise of Powers by Privy Council. E+W

(1) This section applies in relation to the exercise of powers for the purposes of this Part of this Act.

(2) A power vested in the Privy Council may be exercised by any two or more of the lords and others of the Council.

(3) An act of the Privy Council shall be sufficiently signified by an instrument signed by the clerk of the Council.

(4) An order or act signified by an instrument purporting to be signed by the clerk of the Council shall be deemed to have been duly made or done by the Privy Council.

(5) An instrument so signed shall be received in evidence in all courts and proceedings without proof of the authority or signature of the clerk of the Council or other proof.]

Textual Amendments

F32 Ss. 124A-124D inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 71(1); S.I. 1992/831, art. 2, Sch. 1

Modifications etc. (not altering text)

C4 S. 124D extended (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 76(7); S.I. 1992/831, art. 2, Sch. 1

[F50 124E Articles of government: higher education corporations in England E+W

(1) An institution conducted by a higher education corporation in England is to be conducted in accordance with articles of government made by the corporation.

(2) The articles of government may make provision with respect to the powers of the corporation under section 123B.

(3) A higher education corporation in England may vary, replace or revoke the articles of government.

(4) The corporation must not make changes to the articles of government that (but for section 125A) would result in the corporation ceasing to be a charity.]

Textual Amendments

F50 S. 124E inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 12; S.I. 2018/1226, reg. 4(o)

125 Articles of government [F51 : higher education corporations in Wales]. E+W

(1) Any institution conducted by a higher education corporation [F52 in Wales] shall be conducted in accordance with articles of government, to be made by the corporation with the approval of [F53 the Privy Council].

(2) The articles of government—

(a) shall determine the functions to be exercised in relation to the institution by the board of governors of the institution, the principal of the institution and the academic board of the institution; and

(b) may regulate the constitution and functions of committees of the corporation and of the academic board of the institution and provide for the delegation of functions of the board of governors and the academic board to such committees, to the chairman of the corporation or to the principal.

(3) The articles of government shall also make provision with respect to the procedure for meetings of the board of governors, of the academic board and of committees of the corporation and the procedure in relation to the appointment of members of the corporation (including in either case quorum and proxies), and may make provision with respect to—

(a) procedures for the appointment, promotion, suspension and dismissal of staff;

(b) procedures for the admission, suspension and expulsion of students; and

(c) the appointment and functions of a clerk to the board of governors.

(4) The articles of government may also make provision authorising the board of governors to make rules or bye-laws for the government and conduct of the institution, including in particular rules or bye-laws with respect to—

(a) the conduct of students and staff or either of them; and

(b) any such procedures as are mentioned in subsection (3)(a) or (b) above.

(5) Articles of government made under this section may be varied or revoked by subsequent articles made by the corporation with the approval of [F53 the Privy Council].

(6) [F53 The Privy Council] may by a direction under this section require higher education corporations [F54 in Wales], any class of such corporations specified in the direction or any particular higher education corporation [F55 in Wales] so specified—

(a) to amend their articles of government; or

(b) to secure that any rules or bye-laws made in pursuance of their articles of government are amended by the board of governors;

in any manner so specified.

(7) Before giving a direction under this section, [F53 the Privy Council] shall consult the board of governors of the higher education corporation or (as the case may be) of each higher education corporation to which the direction applies.

Textual Amendments

F51 Words in s. 125 heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 13(a); S.I. 2018/1226, reg. 4(o)

F52 Words in s. 125(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 13(b); S.I. 2018/1226, reg. 4(o)

F53 Words in s. 125(1)(5)-(7) substituted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 71(2); S.I. 1992/831, art. 2, Sch. 1

F54 Words in s. 125(6) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 13(c)(i); S.I. 2018/1226, reg. 4(o)

F55 Words in s. 125(6) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 13(c)(ii); S.I. 2018/1226, reg. 4(o)

[F56 125A Charitable status of a higher education corporation. E+W

A higher education corporation shall be a charity and—

(a) [F57 a higher education corporation in England] is, in accordance with Schedule 3 to the Charities Act 2011, an exempt charity for the purposes of that Act, and

(b) a [F58 higher education corporation in Wales] is, in accordance with regulations made in compliance with section 31(3) of that Act, excepted from registration under that Act.]

Textual Amendments

F56 S. 125A substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 50 (with s. 20(2), Sch. 8); words in s. 125A substituted (14.3.2012 immediately before the Charities Act 2011 (c. 25) comes into force) by The Charities (Pre-consolidation Amendments) Order 2011 (S.I. 2011/1396), art. 1, Sch. para. 43(a); and words in s. 125A omitted (14.3.2012 immediately before the Charities Act 2011 (c. 25) comes into force) by virtue of The Charities (Pre-consolidation Amendments) Order 2011 (S.I. 2011/1396), art. 1, Sch. para. 43(a)

F57 Words in s. 125A substituted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 14(a); S.I. 2018/1226, reg. 4(o)

F58 Words in s. 125A substituted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 14(b); S.I. 2018/1226, reg. 4(o)

126 [F59 Transfer of property, etc., to higher education corporations.] E+W

(1) In the case of a higher education corporation established under section 121 of this Act the transfer under this section shall take effect on such date as the Secretary of State may by order appoint in relation to the corporations so established.

(2) In the case of a higher education corporation established under section 122 of this Act the transfer under this section shall take effect on such date as the Secretary of State may by order appoint in relation to that corporation.

(3) Subject to subsection (5) below and section 198 of this Act, on the transfer date applicable in relation to a higher education corporation the property, rights and liabilities mentioned in subsection (4) below shall be transferred to, and by virtue of this Act vest in, that corporation.

(4) The property, rights and liabilities referred to in subsection (3) above are—

(a) all land or other property which, immediately before that date, was property of any [F1 local authority] used or held for the purposes of the transferred institution; and

(b) all rights and liabilities of any such authority subsisting immediately before that date which were acquired or incurred for those purposes.

(5) Subsection (3) above shall not apply to—

(a) rights and liabilities under any contract of employment;

(b) any liability of any such authority in respect of the principal of, or any interest on, any loan; or

(c) any liability of any such authority in respect of compensation for premature retirement of any person formerly employed by them.

(6) In this section “the transferred institution” means, in relation to any higher education corporation, the institution the corporation is established to conduct.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F59 S. 125A inserted (1.10.1998) by 1998 c. 30, s. 41(1); S.I. 1998/2215, art. 2

127 Transfer of staff to higher education corporations. E+W

(1) This section applies to any person who immediately before the transfer date applicable in relation to a higher education corporation [F60 established under section 121 or 122]—

(a) is employed by the transferor authority to work solely at the institution the corporation is established to conduct; or

(b) is employed by that authority to work at that institution and is designated for the purposes of this section by an order made by the Secretary of State.

(2) The contract of employment between a person to whom this section applies and the transferor authority shall have effect from the transfer date as if originally made between him and the corporation.

(3) Without prejudice to subsection (2) above—

(a) all the transferor authority’s rights, powers, duties and liabilities under or in connection with a contract to which that subsection applies shall by virtue of this section be transferred to the corporation on the transfer date; and

(b) anything done before that date by or in relation to the transferor authority in respect of that contract or the employee shall be deemed from that date to have been done by or in relation to the corporation.

(4) Subsections (2) and (3) above are without prejudice to any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions, but no such right shall arise by reason only of the change in employer effected by this section.

(5) An order under this section may designate a person either individually or as a member of a class or description of employees.

(6) References in this section, in relation to a higher education corporation, to the transferor authority, are references to the [F1 local authority] by whom the institution that corporation is established to conduct is maintained immediately before the transfer date.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F60 Words in s. 127(1) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 15; S.I. 2018/1226, reg. 4(o)

Modifications etc. (not altering text)

C5 S. 127 applied (with modifications) (1.9.1992) by S.I. 1992/1849, art.4.

C6 S. 127 applied (with modifications) (1.10.1992) by S.I. 1992/2151, art.4.

C7 S. 127 applied (with modifications) (1.3.1995) by S.I. 1995/183, art.4.

C8 S. 127 applied (with modifications) (1.8.1996) by S.I. 1996/1225, art.4.

S. 127 applied (with modifications) (1.8.2000) by S.I. 2000/1383, art. 3

S. 127 applied (with modificaitons) (1.8.2000) by S.I. 2000/355, art. 3

S. 127 applied (with modifications) (1.8.2001) by S.I. 2001/1340, art. 3

C9 S. 127 applied (with modifications) (1.8.2006) by Wimbledon School of Art Higher Education Corporation (Dissolution) Order 2006 (S.I. 2006/1746), arts. 1(1), 3

C10 S. 127 applied (with modifications) (1.8.2007) by The Cumbria Institute of the Arts Higher Education Corporation (Dissolution) Order 2007 (S.I. 2007/1848), arts. 1, 3

C11 S. 127 applied (with modifications) (11.4.2013) by The University of Wales, Newport Higher Education Corporation (Dissolution) Order 2013 (S.I. 2013/664), arts. 1, 4

C12 S. 127 applied (with modifications) (1.8.2013) by The Swansea Metropolitan University Higher Education Corporation (Dissolution) Order 2013 (S.I. 2013/1729), arts. 1, 4

C13 S. 127(2)(3)(4) applied (with modifications) (1.8.2011) by The Leeds College of Music (Dissolution) Order 2011 (S.I. 2011/1677), arts. 1, 2(2)

128 Dissolution of higher education corporations [F61 in Wales]. E+W

(1) Subject to the following provisions of this section, the Secretary of State may by order provide for—

(a) the dissolution of any higher education corporation [F62 in Wales]; and

(b) the transfer of property, rights and liabilities of the corporation to—

(i) any person appearing to the Secretary of State to be wholly or mainly engaged in the provision of educational facilities or services of any description;

F63 (iia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F64 (iib) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) any body corporate established for purposes which include the provision of such facilities or services;

[F65 [F66 (iii) [F67 the Commission for Tertiary Education and Research (“the Commission”)]]

(iv) ...]

[F68 (v) F69 ... the [F70 National Assembly for Wales].]

(2) An order under sub-paragraph (i) or (ii) of subsection (1)(b) above shall not provide for transferring the property, rights or liabilities of a higher education corporation [F71 in Wales] to any person or body without the consent of that person or body; and where the recipient of a transfer under any order under subsection (1)(b) is not an educational charity any property transferred must be transferred on trust to be used for charitable purposes which are exclusively educational purposes.

(3) For the purposes of subsection (2) above, a charity is an educational charity if the charitable purposes for which it is established are exclusively educational purposes.

(4) Before making an order under this section in respect of a higher education corporation [F72 in Wales] the Secretary of State shall consult—

(a) the corporation; and

[F73 (b) [F74 the Commission]].

(5) In this section [F75 “charitable purposes” has the meaning given by section 11 of the Charities Act 2011].

[F76 (6) An order under this section may apply section 127 of this Act with such modifications as the Secretary of State may consider necessary or desirable.]

Textual Amendments

F61 Words in s. 128 heading inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 17(a); S.I. 2018/1226, reg. 4(o)

F62 Words in s. 128(1)(a) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 17(b); S.I. 2018/1226, reg. 4(o)

F63 S. 128(1)(b)(iia) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(g), Sch. 14 para. 35

F64 S. 128(1)(b)(iib) omitted (1.4.2012) by virtue of Education Act 2011 (c. 21), s. 82(3), Sch. 16 para. 8; S.I. 2012/924, art. 2

F65 Words in s. 128(1)(b)(iii) substituted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 11 para. 8(2); S.I. 2018/1226, reg. 4(p)

F66 S. 128(1)(b)(iii) substituted for s. 128(1)(b)(iii)(iv) (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 34(a)(i); S.I. 1992/831, art. 2, Sch. 1.

F67 Words in s. 128(1)(b)(iii) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), ss. 139(2), 148(2) (with s. 19); S.I. 2024/806, art. 2(h) (with art. 28)

F68 S. 128(1)(b)(v) substituted (28.7.2000 insofar as consequential on ss. 130, 131, Sch. 8 of the amending Act and otherwise 1.4.2001) by 2000 c. 21, ss. 149, Sch. 9 para. 16 (with s. 150); S.I. 2001/654, art. 2(2), Sch. Pt. II; S.I. 2001/1274, art. 2(1), Sch. Pt. I

F69 Words in s. 128(1)(b)(v) repealed (1.4.2010) by The Apprenticeships, Skills, Children and Learning Act 2009 (Consequential Amendments) (England and Wales) Order 2010 (S.I. 2010/1080), art. 1(2)(a)(b), Sch. 1 para. 16(b), Sch. 2 Pt. 1 (with art. 2(3))

F70 Words in s. 128(1)(b)(v) substituted (1.4.2006) by National Council for Education and Training for Wales (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 (S.I. 2005/3238), art. 1(1), Sch. 1 para. 12 (with art. 7)

F71 Words in s. 128(2) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 17(b); S.I. 2018/1226, reg. 4(o)

F72 Words in s. 128(4) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 17(b); S.I. 2018/1226, reg. 4(o)

F73 S. 128(4)(b) substituted (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 34(b); S.I. 1992/831, art. 2, Sch. 1.

F74 Words in s. 128(4)(b) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), ss. 139(4), 148(2) (with s. 19); S.I. 2024/806, art. 2(h) (with art. 28)

F75 Words in s. 128(5) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 51 (with s. 20(2), Sch. 8); words in s. 128(5) substituted (14.3.2012 immediately before the Charities Act 2011 (c. 25) comes into force) by The Charities (Pre-consolidation Amendments) Order 2011 (S.I. 2011/1396), art. 1, Sch. para. 44(a)

F76 S. 128(6) added (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 34(c); S.I. 1992/831, art. 2, Sch. 1.

[F77 127A Dissolution of higher education corporations in England E+W

(1) If requested to do so by notice given by a higher education corporation in England, the Secretary of State may make an order providing for—

(a) the dissolution of the corporation, and

(b) the transfer of property, rights and liabilities of the corporation to—

(i) a person appearing to the Secretary of State to be wholly or mainly engaged in the provision of educational facilities or services of any description;

(ii) a body corporate established for purposes which include the provision of such facilities or services;

(iii) the Office for Students.

(2) An order under this section must not provide for transferring the property, rights or liabilities of a higher education corporation in England to a person or body without the consent of the person or body.

(3) Subsection (4) applies where the recipient of a transfer under an order under this section is not a charity established for charitable purposes which are exclusively educational purposes.

(4) Any property transferred must be transferred on trust to be used for charitable purposes which are exclusively educational purposes.

(5) Before making an order under this section the Secretary of State must consult the Office for Students.

(6) In this section “charitable purposes” has the meaning given by section 11 of the Charities Act 2011.

(7) An order under this section may apply section 127 with such modifications as the Secretary of State may consider necessary or desirable.]

Textual Amendments

F77 S. 127A inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 16; S.I. 2018/1226, reg. 4(o)

Designation of certain institutions for funding by the Polytechnics and Colleges Funding Council, etc. E+W

129 Designation of institutions. E+W

[F78 (1) [F79 The Welsh Ministers] may by order designate [F80 for the purposes of this section] —

(a) any institution [F81 in Wales] which appears to [F82 them] to fall within subsection (2) below; and

(b) any institution [F83 in Wales] which is, or is to be, conducted by a successor company to a higher education corporation.

(2) An institution falls within this subsection if its full-time equivalent enrolment number for courses of higher education exceeds 55 per cent. of its total full-time equivalent enrolment number.]

F84 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F84 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) For the purposes of subsection (1)(b) above, a company is a successor company to a higher education corporation if-

(a) it is a company limited by a guarantee formed and registered under [F85 the Companies Act 2006];

(b) at the time when it was formed the persons participating in its formation were all members of a higher education corporation and constituted a majority of the members of that corporation;

(c) its objects—

(i) are exclusively charitable according to the law of England and Wales; and

(ii) include the conduct of the institution which was at that time conducted by that corporation;

(d) its [F86 articles of association] have been approved by [F87 the Welsh Ministers]; and

(e) an order has been made under section [F88 127A or] 128 of this Act dissolving the corporation and transferring the property, rights and liabilities of the corporation to the company (whether or not that order has taken effect before the order under this section is made).

Textual Amendments

F78 S. 129(1)(2) substituted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 72(1)(a); S.I. 1992/831, art. 2, Sch. 1

F79 Words in s. 129(1) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(a)(i) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F80 Words in s. 129(1) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(a)(ii) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F81 Words in s. 129(1)(a) inserted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(a)(iv) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F82 Word in s. 129(1)(a) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(a)(iii) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F83 Words in s. 129(1)(b) inserted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(a)(iv) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F84 S. 129(3)(4) repealed (6.5.1992) by Further and Higher Education Act 1992 (c. 13), ss. 72(1)(b), 93(2), Sch. 9; S.I. 1992/831, art. 2, Sch. 1

F85 Words in s. 129(5)(a) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 96(2)(a) (with art. 10)

F86 Words in s. 129(5)(d) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 96(2)(b) (with art. 10)

F87 Words in s. 129(5)(d) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(4)(b) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F88 Words in s. 129(5)(e) inserted (1.8.2019) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 8 para. 18; S.I. 2018/1226, reg. 4(o)

Modifications etc. (not altering text)

C14 S. 129 extended (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 74(2); S.I. 1992/831, art. 2, Sch.3.

[F89 129A Government and conduct of designated institutions. E+W

(1) This section has effect in relation to any designated institution, other than an institution conducted by a company.

(2) For each such institution 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; or

(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 Privy Council.

(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 body of persons responsible for the management of the institution and an instrument made by them under this subsection may replace wholly or partly any existing regulatory instrument.

(6) If an instrument approved by the Privy Council 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 body of persons responsible for the management of the institution,

the instrument may be modified by those persons.

(7) Either of the instruments referred to in subsection (2) above may be modified by order of the Privy Council and no instrument approved by the Privy Council for the purposes of this section may be modified by any other person without the Privy Council’s consent.

(8) Before exercising any power under subsection (7) above in relation to any instrument the Privy Council 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 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 them to be practicable to do so.

(9) Nothing in this section requires further approval for any instrument approved by the Secretary of State for the purposes of section 156 of this Act, and references in this section to instruments approved by the Privy Council for the purposes of this section include instruments so approved by the Secretary of State.

(10) In this section and section 129B “designated institution” means an institution in relation to which a designation made, or having effect as if made, under section 129 of this Act has effect but does not include any institution established by Royal Charter.]

Textual Amendments

F89 Ss. 129A, 129B inserted (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 73(1); S.I. 1992/831, art. 2, Sch.1.

129B F90 Designated institutions conducted by companies. E+W

(1) This section has effect in relation to any designated institution conducted by a company.

(2) The articles of association of the company shall incorporate—

(a) provision with respect to the constitution of a governing body of the institution (to be known as the instrument of government of the institution); and

(b) provision with respect to the conduct of the institution (to be known as the articles of government of the institution).

(3) The Privy Council may give to the persons who appear to them to have effective control over the company such directions as they think fit for securing that—

(a) the [F91 articles of association] of the company; or

(b) any rules or bye-laws made in pursuance of any power conferred by the articles of association of the company,

are amended in such manner as they may specify in the direction.

(4) No amendment of the [F92 articles of association] of the company (other than one required under subsection (3)(a) above) shall take effect until it has been submitted to the Privy Council for their approval and they have notified their approval to the company.

(5) Before giving any directions under subsection (3) above the Privy Council shall consult the persons who appear to them to have effective control over the company.

Textual Amendments

F90 Ss. 129A, 129B inserted (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 73(1); S.I. 1992/831, art. 2, Sch.1.

F91 Words in s. 129B(3)(a) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 96(3) (with art. 10)

F92 Words in s. 129B(4) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 96(3) (with art. 10)

130 Transfer of property, etc., to certain designated institutions. E+W

(1) This section applies to an institution designated under section 129 of this Act in any case where—

(a) the order designating the institution under that section so provides; and

(b) immediately before the date on which the designation takes effect (referred to below in this section, in relation to such an institution, as the designation date) the institution is an institution assisted by a [F1 local authority] (referred to below in this section as the former assisting authority).

(2) Subject to subsection (4) below and section 198 of this Act, on the designation date in relation to any institution to which this section applies the property, rights and liabilities mentioned in subsection (3) below shall be transferred to, and by virtue of this Act vest in, the appropriate transferee.

(3) The property, rights and liabilities referred to in subsection (2) above are—

(a) all land or other property which, immediately before that date, was property of the former assisting authority used or held for the purposes of that institution; and

(b) all rights and liabilities of that authority subsisting immediately before that date which were acquired or incurred for those purposes.

(4) Subsection (2) above shall not apply to—

(a) any liability of the former assisting authority in respect of the principal of, or any interest on, any loan; or

(b) any liability of that authority in respect of compensation for premature retirement of any person formerly employed by them.

(5) In subsection (2) above, “the appropriate transferee” means—

(a) in relation to an institution conducted by a body corporate, that body; and

(b) in relation to an institution not so conducted, any persons specified in the order designating the institution as persons appearing to the Secretary of State to be trustees holding property for the purposes of that institution.

(6) Subject to subsection (7) below, where any persons so specified are the appropriate transferee for the purposes of subsection (2) above—

(a) any land or other property or rights transferred to them under this section shall be held by them on the trusts applicable under such trust deed relating to or regulating that institution (if any) as may be so specified or, if no such trust deed is so specified, on trust for the purposes of the institution; and

(b) they shall incur no personal liability by virtue of any liability so transferred, but may apply any property held by them on trust for the purposes of the institution in meeting any such liability.

(7) Subsection (6)(a) above shall not apply in relation to any land or other property or rights which immediately before the designation date in relation to the institution concerned were vested in the former assisting authority as trustees for any particular purposes or (as the case may be) for the general purposes of the institution.

(8) In this Act, “transfer date” means, in relation to an institution to which this section applies, the designation date in relation to that institution.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

New arrangements for funding higher education E+W+S

F93 131 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F93 S. 131 repealed (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93, Sch. 8 Pt. I para. 35, Sch.9; S.I. 1992/831, art. 2, Sch.3.

F94 132 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W

Textual Amendments

F94 S. 132 repealed (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93, Sch. 8 Pt. I para. 35, Sch.9; S.I. 1992/831, art. 2, Sch.3.

133 Payments F95 ...in respect of persons employed in the provision of higher or further education. E+W

F96 [(1) [F97 The Office for Students] [F98 has] power to make payments, subject to such terms and conditions as [F99 it thinks] fit, to—

(a) any [F1 local authority] in [F100 its] area;

(b) the London Residuary Body;

(c) the London Pensions Fund Authority; and

(d) the governing body of any institution designated under section 129 of this Act, as originally enacted;

in respect of relevant expenditure incurred or to be incurred by that authority or body of any class or description prescribed for the purposes of this section.]

(2) In subsection (1) above “relevant expenditure” means—

(a) in relation to a [F1 local authority] [F101 the London Residuary Body or the London Pensions Fund Authority], expenditure in making payments to or in respect of persons employed or formerly employed at an institution which provides or (in the case of an institution which has ceased to exist since the employment in question came to an end) formerly provided higher education or further education (or both); and

(b) in relation to the governing body of any institution so designated, expenditure in making payments to or in respect of persons employed or formerly employed at the institution.

(3) The reference in subsection (2)(a) above to higher education or further education (or both) shall be read, in the case of an institution which ceased to exist before the date on which section 120 of this Act comes into force, as a reference to further education within the meaning of section 41 of the 1944 Act as that section had effect immediately before that date [F102 and in any other case the reference to further education shall be read as a reference to further education within the meaning of section 41 of the 1944 Act as that section had effect on that date].

(4) Each of the following, that is to say—

(a) a [F1 local authority];

F103 [(aa) the London Residuary Body;

F103 (ab) the London Pensions Fund Authority; and]

(b) the governing body of any institution so designated;

shall give the Council such information as the Council may require for the purposes of the exercise of their power under subsection (1) above.

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F95 Words in s. 133 heading omitted (1.4.2018) by virtue of Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 11 para. 10(2); S.I. 2018/241, reg. 2(s)

F96 S. 133(1) substituted (1.4.1993) by Further and Higher Education Act 1992 (c. 13), s. 67(1); S.I. 1992/831, art. 2, Sch.3.

F97 Words in s. 133(1) substituted (1.4.2018) by Higher Education and Research Act 2017 (c. 29), s. 124(5), Sch. 11 para. 10(3)(a); S.I. 2018/241, reg. 2(s)

F98 Word in s. 133(1) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(5)(a) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F99 Words in s. 133(1) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(5)(b) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F100 Word in s. 133(1)(a) substituted (1.8.2024) by Tertiary Education and Research (Wales) Act 2022 (asc 1), s. 148(2), Sch. 4 para. 5(5)(c) (with s. 19); S.I. 2024/806, art. 2(k)(iii) (with art. 28)

F101 Words in s. 133(2)(a) inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 67(2); S.I. 1992/831, art. 2, Sch. 1.

F102 Words in s. 133(3) added (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 67(3); S.I. 1992/831, art. 2, Sch. 1.

F103 S. 133(4)(aa)(ab) inserted (6.5.1992) by Further and Higher Education Act 1992 (c. 13), s. 67(4); S.I. 1992/831, art. 2, Sch. 1.

Modifications etc. (not altering text)

C15 S. 133 amended(retrospectively) (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 67(5); S.I. 1992/831, art. 2, Sch. 1.

S. 133 modified (1.4.1993) by S.I. 1993/563, art. 2(b)(i), Sch.1

F104 134 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F104 S. 134 repealed (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93, Sch. 8 Pt. I para. 35, Sch.9; S.I. 1992/831, art. 2, Sch.3.

Supplementary E+W

135 Inspection of accounts. E+W

(1) The accounts of—

(a) any university;

(b) any higher education corporation; F105 ...

[F106 (c) any designated institution within the meaning of section 129A of this Act] [F107 or

(d) any registered higher education provider of a description prescribed by regulations made for the purposes of section 39(1) of the Higher Education and Research Act 2017]

shall be open to the inspection of the Comptroller and Auditor General.

(2) In the case of any higher education corporation or of any such institution as is mentioned in [F108 subsection (1)(a), (c) or (d)] above—

(a) the power conferred by subsection (1) above; and

(b) the powers under sections 6 and 8 of the M2 National Audit Act 1983 (examinations into the economy, efficiency and effectiveness of certain bodies and access to documents and information) conferred on the Comptroller and Auditor General by virtue of section 6(3)(c) of that Act;

shall be exercisable only in, or in relation to accounts or other documents which relate to, any financial year in which expenditure is incurred by the corporation, or by the governing body of the institution in question, in respect of which [F109 financial support has been given to them under section 65 of the Further and Higher Education Act 1992 [F110 or section 39 or 97 of the Higher Education and Research Act 2017].]

Textual Amendments

F105 Word in s. 135(1)(b) omitted (1.8.2019) by virtue of The Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019 (S.I. 2019/1027), regs. 1, 3(2)(a)

F106 S. 135(1)(c) substituted (6. 5. 1992) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 36(a); S.I. 1992/831, art. 2, Sch. 1.

F107 S. 135(1)(d) and word inserted (1.8.2019) by The Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019 (S.I. 2019/1027), regs. 1, 3(2)(b)

F108 Words in s. 135(2) substituted (1.8.2019) by The Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019 (S.I. 2019/1027), regs. 1, 3(3)(a)

F109 Words in s. 135(2) substituted (1. 4. 1993) by Further and Higher Education Act 1992 (c. 13), s. 93(1), Sch. 8 Pt. I para. 36(b); S.I. 1992/831, art. 2, Sch.3.

F110 Words in s. 135(2) inserted (1.8.2019) by The Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019 (S.I. 2019/1027), regs. 1, 3(3)(b)

Modifications etc. (not altering text)

C16 S. 135(2) modified by S.I. 1993/563 art. 2(b)(i), Sch.1 as amended (19.4.1993) by S.I. 1993/870, art.2

Marginal Citations

M2 1983 c. 44.

F111 136 Transfer to Polytechnics and Colleges Funding Council of property and staff of NAB. E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F111 S. 136 repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 5 Group 4

F112 137 Control of disposals of land. E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F112 S. 137 repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 7

138 Construction of references to land held for the purposes of an institution. E+W

(1) This section applies for the purpose of the construction of the following provisions of this Act—

(a) section 126(4)(a);

(b) section 130(3)(a); F113 ...

F113 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Where at any time any land is used for the purposes of an institution to which any of those provisions applies, any interest of a [F1 local authority] in that land subsisting at that time shall be taken for the purposes of that provision to be land held for the purposes of that institution (whether or not it is by virtue of that interest that the land is so used).

Textual Amendments

F1 Words in Act substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), Sch. 2 para. 4(2)

F113 S. 138(1)(c) and preceding word repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 7