Part I Regulation of Housing Associations
Inquiries into affairs of housing associations
30 General powers exercisable as a result of inquiry or audit.
(1)
Where the F1Corporation is satisfied, as the result of an inquiry under section 28 or an audit under section 29, that there has been misconduct or mismanagement in the affairs of a registered housing association, it may—
(a)
by order remove any member of the committee of the association, or any officer, agent or employee of the association, who has been responsible for or privy to the misconduct or mismanagement or has by his conduct contributed to it or facilitated it;
(b)
by order suspend such a person for up to six months, pending determination whether he should be removed;
(c)
order any bank or other person who holds money or securities on behalf of the association not to part with the money or securities without the approval of the Corporation;
(d)
by order restrict the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the association without the approval of the Corporation.
F2(1A)
If at any time the appointed person makes an interim report under section 28(3B) and, as a result of that interim report, the Corporation is satisfied that there has been misconduct or mismanagement as mentioned in subsection (1),—
(a)
the Corporation may at that time exercise any of the powers conferred by paragraphs (b) to (d) of that subsection; and
(b)
in relation to the exercise at that time of the power conferred by subsection (1)(b), the reference therein to a period of six months shall be construed as a reference to a period beginning at that time and ending six months after the date of the report under section 28(4).
(2)
Before making an order under subsection (1)(a) the Corporation shall give at least 14 days’ notice of its intention to do so—
(a)
to the person it intends to remove, and
(b)
to the association concerned.
(3)
Notice under subsection (2) may be given by post, and if so given to the person whom the Corporation intends to remove may be addressed to his last known address in the United Kingdom.
(4)
A person who is ordered to be removed under subsection (1)(a) or suspended under subsection (1)(b) may appeal against the F3order,—
(a)
if it is an order of the Housing Corporation or Housing for Wales, to the High Court; and
(b)
if it is an order of Scottish Homes, to the Court of Session.
(5)
Where a person is suspended under subsection (1)(b), the Corporation may give directions with respect to the performance of his functions and otherwise as to matters arising from the suspension.
(6)
A person who contravenes an order under subsection (1)(c) commits a summary offence and is liable on conviction to a fine not exceeding level 5 on the standard scale or imprisonment for a term not exceeding three months or both; but proceedings for such an offence may be brought in England and Wales only by or with the consent of the Corporation or the Director of Public Prosecutions.