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Part VIS Reorganisation of Endowments

105 Schemes for reorganisation of educational endowments.S

(1)Subject to the provisions of this section, [F1an education authority, whether upon an application made to them or not, may, if they think fit,] prepare draft schemes for the future government and management of educational endowments, which schemes may provide—

(a)for altering the purposes to which such endowments are applied or applicable and the conditions and provisions regarding such application;

(b)for the application of the capital or income of such endowments to such educational purposes, mental oor physical, moral or social, as the [F2education authority think] fit having regard to the public interest and to existing conditions, social and educational: Provided always that the capital of any such endowment shall not be expended except on a purpose to which capital may properly be devoted;

(c)for grouping, amalgamating, combining or dividing any such endowments;

(d)for altering the constitution of the governing body of any such endowment, or uniting two or more existing governing bodies or establishing new governing bodies with such powers as shall seem necessary, and for incorporating any governing body, whether old or new, and for dissolving any governing body whose endowment is transferred to another governing body; and

(e)for altering the powers as to the investment of the funds of any such endowment.

[F3Provided that in considering whether to exercise, in relation to any endowment, the power conferred upon them by this subsection an education authority may have regard to whether the exercise of the power would prejudice the proper discharge by them of their functions under this Act apart from this section or their functions as local authority under any enactment.]

(2)It shall be the duty of the [F4education authority] in reorganising any endowment in pursuance of the powers conferred by this Part of this Act to have special regard—

(a)to the spirit of the intention of the founders as embodied either—

(i)in the original deed constituting the endowment where it is still the governing instrument, or

(ii)in the scheme approved under any Act, or in any provisional order affecting the endowment;

(b)to the interest of the locality to which the endowment belongs;

(c)to the possibility of effecting economy in administration by the grouping, amalgamation or combination of any two or more endowments; and

(d)to the need for continuing the provision from endowments of competitive bursaries at universities, central institutions, colleges of education or other educational institutions of a similar character.

(3)In every scheme which abolishes or modifies any privileges or educational advantages to which a particular class of persons is entitled, whether as inhabitants of a particular area or as belonging to a particular class in life or otherwise, the [F4education authority] shall have regard to the educational interests of such class of persons:

Provided always that, where the governing instrument of any educational endowment has expressly provided for the education of children belonging to the poorer classes, either generally or within a particular area, or otherwise for their benefit, such endowment for such education or otherwise for their benefit shall continue, so far as requisite, to be applied for the benefit of such children.

(4)The powers of the [F4education authority] under this section shall not extend—

(a)to a university endowment, or

(b)to the Carnegie Trust, or

(c)to a theological endowment, or

(d)to a new endowment; [F5, or

(e)to an endowment which relates in whole or in part to an educational establishment not managed by the education authority who would, but for this paragraph, be empowered under this section to exercise in relation to that endowment the functions conferred by this section, or

(f)to an educational endowment having no limitation either as to the area in which any educational establishment to which it relates is situated or as to the area in which any of its beneficiaries are required under its governing instrument to reside or with which they are so required to have some other connection.]

[F6Provided that tis subsection shall not apply to an endowment which falls within paragraph (e) above solely by reason of the inclusion among its purposes of the award of prizes, bursaries or similar benefits to persons who attend or have attended educational establishments or other institutions not managed by an education authority.]

[F7(4A)The Court of Session shall have power, on the petition of—

(a)the governing body of any endowment to which subsection (4) above applies or, in the case of the Carnegie Trust, the Trustees;

(b)in relation to an endowment to which paragraph (e) of that subsection applies and which relates only in part to an educational establishment not managed by the education authority referred to in that paragraph, the education authority, in respect of the part of the endowment in relation to which they would, but for the said paragraph (e), be empowered under this section to exercise the functions conferred by this section,

to give effect to draft schemes for the future government and management of the endowment or, as the case may be, the Trust, which schemes may provide for any of the purposes set out in paragraphs (a) to (e) of subsection (1) above and, in exercising the power conferred on it under this subsection, the Court shall have special regard to the matters specified in paragraphs (a) to (d) of subsection (2) above.

(4B)Where a petition under subsection (4A) above relates to an endowment to which paragraph (e) of subsection (4) above applies and which relates only in part to an educational establishment not managed by the education authority referred to in that paragraph the Court of Session shall, before making an order under the said subsection (4A)—

(a)where the petition was presented by any body referred to in paragraph (a) of the said subsection (4A), cause the petition to be served on the education authority;

(b)where the petition was presented by an education authority under paragraph (b) of the said subsection (4A), cause the petition to be served on the governing body of the endowment to which the petition relates.

(4C)The governing body of an endowment in relation to which an education authority are empowered under this section to exercise the functions conferred by this section may, if the authority refuse to exercise their power under subsection (1) above in relation to the endowment on the ground that such exercise would prejudice the proper discharge by them of their functions under this Act apart from this section or their functions as local authority under any enactment, present a petition to the Court of Session, and subsections (4A), (4B) and (4D) of this section shall apply to such a petition.

F8(4D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

(6)After 30th June 1976 any reference in a scheme made or approved under Part VI of the Act of 1946 or under Part VI of the Act of 1962 (reorganisation of educational endowments)—

(a) to a certificated teacher shall be construed as a reference to a teacher registered under the [F10Public Services Reform (General Teaching Council for Scotland) Order 2011];

(b) to a children’s committee shall be construed as a reference to a social work committee established under section 2(1) of the M1 Social Work (Scotland) Act 1968;

(c)to the Scottish Counties of Cities Association or to the Association of County Councils in Scotland shall be construed as a reference to the Convention of Scottish Local Authorities.

[F11(7) In this section, “education authority” means, in relation to an educational endowment, the education authority for the area in which any educational establishment to which the endowment relates is situated or, where the endowment relates to no particular such establishment, the education authority for the area in which the beneficiaries of the endowment are required under its governing instrument to reside or with which they are so required to have some other connection.]]

Textual Amendments

F9 Ss. 105(5), 110(3), 112(6), 113, 115, 116, repealed with savings by Education (Scotland) Act 1981 (c. 58), Sch. 9 and S.I. 1981/1557, art. 4

Marginal Citations