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2(1)A registered social landlord which is [F1a registered society] or [F2a company] shall not make a payment or grant a benefit to—E+W
(a)an officer or employee of the society or company,
(b)a person who at any time within the preceding twelve months has been a person within paragraph (a),
(c)a close relative of a person within paragraph (a) or (b), or
(d)a business trading for profit of which a person falling within paragraph (a), (b) or (c) is a principal proprietor or in the management of which such a person is directly concerned,
except as permitted by this paragraph.
(2)The following are permitted—
(a)payments made or benefits granted to an officer or employee of the society or company under his contract of employment with the society or company;
(b)the payment of remuneration or expenses to an officer of the society or company who does not have a contract of employment with the society or company;
(c)any such payment as may be made in accordance with paragraph 1(2) (interest payable in accordance with the rules and certain sums payable by a fully mutual housing association to a person who has ceased to be a member);
(d)the grant or renewal of a tenancy by a co-operative housing association;
(e)where a tenancy of a house has been granted to, or to a close relative of, a person who later became an officer or employee, the grant to that tenant of a new tenancy whether of the same or another house;
(f)payments made or benefits granted in accordance with any determination made by the [F3Relevant Authority].
(3)A determination for the purposes of sub-paragraph (2)(f) may specify the class or classes of case in which a payment may be made or benefit granted and specify the maximum amount.
(4)Where a society or company pays a sum or grants a benefit in contravention of this paragraph, the society or company may recover the sum or value of the benefit; and proceedings for its recovery shall be taken if the [F3Relevant Authority] so directs.
Textual Amendments
F1Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)
F2Words in Sch. 1 para. 2(1) 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. 161(10)(a) (with art. 10)
F3Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.
Commencement Information
I1Sch. 1 para. 2 wholly in force at 1.10.1996; Sch. 1 para. 2 not in force at Royal Assent; Sch. 1 para. 2(2)(f) in force for certain purposes at 1.8.1996 by S.I. 1996/2048, art. 3; Sch. 1 para. 2 in force at 1.10.1996 to the extent that it is not already in force by S.I. 1996/2404, art. 3 (subject to the transitional provisions and savings in the Sch. of that S.I.)
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