Sections 73(6) and 74(10).
1The Reserve Pension Board (" the Board ") shall have perpetual succession and a common seal.
2It shall be the duty of the Secretary of State—
(a)to satisfy himself, before he appoints a person to be a member of the Board (whether as chairman, deputy chairman or otherwise), that that person will have no such financial or other interest as is likely to affect prejudicially the performance of his functions as a member ; and
(b)to satisfy himself from time to time with respect to each member that the member has no such interests ;
and a person who is a member of the Board, or whom the Secretary of State proposes to appoint to be a member shall, whenever requested by the Secretary of State to do so, furnish him with such information as he may specify with a view to carrying out his duty under this paragraph.
3Subject to the following provisions of this Schedule, a person shall hold and vacate office as chairman, deputy chairman or other member of the Board in accordance with the terms of the instrument appointing him.
4A person may at any time resign office as chairman, deputy chairman or other member of the Board by giving to the Secretary of State written notice of resignation signed by that person.
5(1)If a member of the Board becomes or ceases to be chairman or deputy chairman, the Secretary of State may vary the terms of the instrument appointing him to be a member so as to alter the date on which he is to vacate office.
(2)If the chairman or deputy chairman ceases to be a member he shall cease to be chairman or deputy chairman, as the case may be.
6(1)If the Secretary of State is satisfied that a member of the Board—
(a)has been absent from meetings of the Board for a period longer than 3 consecutive months without the Board's permission ; or
(b)has become bankrupt or made an arrangement with his creditors,
the Secretary of State may remove that member.
(2)In the application of sub-paragraph (1) above to Scotland, for the references to a member's having become bankrupt and to his having made an arrangement with his creditors there shall be substituted respectively references to sequestration of a member's estate having been awarded and to his having made a trust deed for behoof of his creditors or a composition contract.
(3)Without prejudice to the foregoing provisions, the Secretary of State may remove a member of the Board on the ground of incapacity or misbehaviour.
7The Board shall pay to each member such remuneration as the Secretary of State may determine with the consent of the Minister for the Civil Service.
8The Board shall make such provision as may be determined by the Secretary of State with the consent of the Minister for the Civil Service for the payment of pensions, allowances or gratuities to or in respect of such members of the Board as may be so determined.
9Where a person ceases to be a member of the Board otherwise than on the expiration of his term of office and it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the Minister for the Civil Service direct the Board to make to that person a payment of such amount as the Secretary of State may determine with the consent of that Minister.
10The quorum of the Board and the arrangements relating to their meetings shall be such as the Board may determine.
11(1)A member of the Board who is in any way directly or indirectly interested in a contract proposed to be made by the Board, or in any other matter whatsoever which falls to be considered by the Board (and in particular, but without prejudice to the generality of the foregoing words, a matter relating directly or indirectly to the investments of the Reserve Pension Fund), shall disclose the nature of his interest at a meeting of the Board and the disclosure shall be recorded in the minutes of the meeting; and the member shall not—
(a)in the case of a contract, take part in any deliberation or decision of the Board with respect to the contract; and
(b)in the case of any other matter, take part in any deliberation or decision of the Board with respect to that matter if the Board decide that the interest in question might affect prejudicially the member's consideration of that matter.
(2)A notice given by a member at a meeting of the Board to the effect—
(a)that he is a member of a specified company or firm and is to be regarded as interested in any contract made, or business conducted, after the date of the notice with that company or firm (or, in the case of a firm, with any member of it); or
(b)that he is a member of a specified company and is to be regarded as interested in any matter relating to the acquisition or disposal of any securities of that company,
shall for the purposes of sub-paragraph (1) above, be a sufficient disclosure of any interest of his in relation to a contract so made, or business so conducted, or to any such matter, as the case may be.
(3)A member need not attend in person at a meeting of the Board in order to make a disclosure for the purposes of this paragraph if he takes reasonable steps to secure that the disclosure is made by a notice in writing to be taken into consideration and read at such a meeting.
(4)Nothing in this paragraph applies to any interest of a member of the Board arising from his being himself actually or prospectively entitled to a reserve scheme pension.
12The validity of any proceedings of the Board shall not be affected by any vacancy among the members, or by any defect in the appointment of a member, or by any failure to comply with the requirements of paragraph 11 above.
13(1)The Board shall appoint a secretary and such officers and servants as they may determine with the consent of the Secretary of State and the Minister for the Civil Service jointly as to the numbers appointed.
(2)Provision shall be made by the Board, with the like consent, as to the remuneration of their secretary, and other officers and servants; and the Board shall also make such provision as may be determined by the Secretary of State with the consent of the Minister for the Civil Service for the payment of pensions, allowances or gratuities to or in respect of their secretary or other officers and servants as may be so determined.
14The Board may authorise any member, or any officer or servant appointed by them under paragraph 13 above, to perform on behalf of the Board such of their functions (including functions conferred by this paragraph) as are specified in the authorisation.
15The fixing of the common seal of the Board shall be authenticated by the signature of two persons, one of whom shall be the secretary of the Board or a person appointed by them to act as his deputy for the purpose and the other shall be either a member of the Board or a person authorised by them to act.
16A document purporting to be duly executed under the seal of the Board shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.
17(1)It shall be the duty of the Board—
(a)to keep proper accounts of the Reserve Pension Fund and proper records in relation to the accounts ; and
(b)to prepare in respect of each financial year, in such form as the Secretary of State with the approval of the Treasury may direct, a statement of those accounts showing the financial condition of the Fund as at the end of that year.
(2)The accounts kept and the statement prepared in pursuance of sub-paragraph (1) above shall be audited by auditors appointed from time to time by the Secretary of State; and a person shall not be qualified to be so appointed unless he is a member of one or more of the following bodies—
The Institute of Chartered Accountants in England and Wales;
The Institute of Chartered Accountants of Scotland ;
The Association of Certified Accountants ;
The Institute of Chartered Accountants in Ireland ;
any other body of accountants established in the United Kingdom and for the time being recognised for the purposes of section 161(1)(a) of the [1948 c. 38.] Companies Act 1948 by the Secretary of State;
but a Scottish firm may be so appointed if each of the partners therein is qualified for appointment.
18(1)It shall be the duty of the auditors in preparing their report on the accounts of the Fund to carry out such investigations as will enable them to form an opinion as to the following matters, namely—
(a)whether the Board have properly complied with their duties under paragraph 17 above, and have maintained a satisfactory system of control over their transactions and records ;
(b)whether the investments of the Fund indicate that the Board have complied with section 75(2) of this Act;
and the auditors shall include in their report a statement of their conclusions as to the matters referred to in this paragraph.
(2)The auditors—
(a)shall have a right of access at all times to the books, accounts and records of the Board, and to all other documents in the possession, or under the control, of the Board and relating to the Board's affairs; and
(b)shall be entitled to require from any member or officer of the Board such information and explanations as they think necessary for the performance of their duties under this paragraph and generally for the purpose of discharging their duties as auditors.
(3)If the auditors fail to obtain all the information and explanations which, to the best of their knowledge and belief, are necessary for the purposes of their audit, they shall state that fact in their report.