156Government and conduct of certain further and higher education institutions
(1)This section applies to any institution which is—
(a)a designated assisted institution providing full-time education; or
(b)an institution designated under section 129 of this Act as an institution eligible to receive support from funds administered by the Polytechnics and Colleges Funding Council.
(2)Where any institution to which this section applies is conducted by a company, the articles of association of the company shall incorporate—
(a)provision with respect to the constitution of a governing body of the institution (to be known as the instrument of government of the institution); and
(b)provision with respect to the conduct of the institution (to be known as the articles of government of the institution).
(3)Where any such institution is so conducted—
(a)the Secretary of State may give to the persons who appear to him to have effective control over the company such directions as he thinks fit for securing that—
(i)the memorandum or articles of association of the company; or
(ii)any rules or bye-laws made in pursuance of any power conferred by the articles of association of the company;
are amended in such manner as he may specify in the direction; and
(b)no amendment of the memorandum or articles of association of any such company (other than one required under paragraph (a)(i) above) shall take efect until it has been submitted to the Secretary of State for his approval and he has notified his approval to the company.
(4)Before giving any directions under subsection (3)(a) above the Secretary of State shall consult the persons who appear to him to have effective control over the company concerned.
(5)Where it is proposed to form a company to conduct any institution providing full-time education which is maintained by a local education authority in exercise of their further or higher education functions, the proposed memorandum and articles of association of the company shall be submitted to the Secretary of State for his approval before the company is formed and amended in any manner he may require.
(6)For every institution to which this section applies which is not conducted by a company, there shall be—
(a)an instrument providing for the constitution of a governing body of the institution (to be known as the instrument of government); and
(b)an instrument in accordance with which the institution is to be conducted (to be known as the articles of government).
(7)The instrument and articles of government of any institution within subsection (6) above shall be made by the responsible authority with the approval of the Secretary of State.
(8)The instrument of government of any institution within subsection (6) above, and the instrument containing the articles of government of any such institution, may each include provision for its amendment or replacement subject to the approval of the Secretary of State.
(9)In this section, “the responsible authority” means, in relation to the instrument or articles of government of any institution within subsection (6) above—
(a)where any existing instrument or articles of government of the institution, or any other instrument relating to or regulating the institution, confers power on any persons to amend or replace that instrument or those articles, the persons on whom that power is so conferred; and
(b)in any other case, the persons responsible for the management of the institution.
(10)The Secretary of State may by order amend the instrument and articles of government of any institution within subsection (6) above in such manner as he thinks fit.
(11)Before making any amendments of the instrument or articles of government of any institution under subsection (10) above the Secretary of State shall consult—
(a)the responsible authority; and
(b)the persons responsible for the management of the institution, in any case where those persons are not the responsible authority;
in so far as it appears to him to be practicable to do so.