The Pensions (Northern Ireland) Order 1995

Corporate trustees: member-nominated directors N.I.

F1 18.—(1) Where a company is a trustee of a trust schemeF2 and the employer is connected with the company or prescribed conditions are satisfied, the company mustF3 , subject to Article 19 secure—

(a) that such arrangements forF2 persons selected by the[F4 qualifying] members of the scheme to be directors of the company as are required by this Article are made, and

(b) that those arrangements,F5 and the appropriate rules, are implemented.

(2) Persons who become directors under the arrangements required by paragraph (1) are referred to in this Part as “member-nominated directors”.

(3) The arrangements must provide—

(a) for any person who has been nominated and selectedF2 in accordance with the appropriate rules to become a director by virtue of his selection, and

(b) for the removal of such a person to require the agreement of all the other directors.

(4) Where a vacancy for a member-nominated director is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance withF2 the appropriate rules.

(5) The arrangements must provide for the selection of a person as a member-nominated director to have effect for a period of not less than three nor more than six yearsF6 .

(6) The arrangements must provide for the number of member-nominated directors to be—

(a) at least two or (if the scheme comprises less than 100[F4 qualifying] members) at least one, and

(b) at least one-third of the total number of directors;

but the arrangements must not provide for a greater number of member-nominated directors than that required to satisfy that minimum unless the employer has given his approval to the greater number.

F6 (7) F2 The arrangements must provide that, if a member-nominated director who was a[F4 qualifying] member of the scheme when he was appointed ceases to be[F4 such a member], he ceases to be a director by virtue of that factF6 .

F2 (8) Where this Article applies to a company which is—

(a) a trustee of two or more trust schemes, and

(b) a wholly-owned subsidiary (within the meaning of Article 4 of the Companies (Northern Ireland) Order 1986F7 ) of a company which is the employer in relation to those schemes,

the following provisions apply as if those schemes were a single scheme and the members of each of the schemes were members of that scheme, that is: the preceding provisions of this Article, Article 20 and Article 21(7).F8

F1 prosp. (until 06/04/06) rep. by 2005 NI 1

F2 prosp. subst. by 2000 c. 4 (NI)

F3 prosp. rep. by 2000 c. 4 (NI)

F4 1999 NI 11

F5 prosp. rep. by 2000 c. 4 (NI)

F6 prosp. inserted by 2000 c. 4 (NI)

F7 1986 NI 6

F8 prosp. added by 2000 c. 4 (NI)