Termination by the Board: additional provisions specific to contracts with two or more individuals practising in partnership and companies limited by sharesN.I.
108.—(1) Where the contractor is a company limited by shares, if the Board becomes aware that the contractor is carrying on any business which the Board considers to be detrimental to the contractor’s performance of his obligations under the contract –
(a)the Board shall be entitled to give notice to the contractor requiring that he ceases carrying on that business before the end of a period of not less than 28 days beginning on and including the day on which the notice is given (“the notice period”); and
(b)if the contractor has not satisfied the Board that he has ceased carrying on that business by the end of the notice period, the Board may, by a further written notice, terminate the contract forthwith or from such date as may be specified in the notice.
(2) Where the contractor is two or more persons practising in partnership, the Board shall be entitled to terminate the contract by notice in writing on such date as may be specified in that notice where one or more partners have left the practice during the existence of the contract if in its reasonable opinion, the Board considers that the change in membership of the partnership is likely to have a serious adverse impact on the ability of the contractor or the Board to perform its obligations under the contract.
(3) A notice given to the contractor pursuant to sub-paragraph (2) shall specify –
(a)the date upon which the contract is to be terminated; and
(b)the Board’s reasons for considering that the change in the membership of the partnership is likely to have a serious adverse impact on the ability of the contractor or the Board to perform his obligations under the contract.
Commencement Information
I1Sch. 5 para. 108 in operation at 29.3.2004, see reg. 1