Education Reform Act 1988

157 Variation of trust deeds, etc

(1) The Secretary of State may by order make such modifications as he thinks fit in any trust deed or other instrument—

(a) relating to or regulating any such institution as is mentioned in subsection (2) below; or

(b) relating to any land or other property held by any person for the purposes of any such institution.

(2) The institutions referred to in subsection (1) above are—

(a) any institution conducted by a higher education corporation;

(b) any designated assisted institution providing full-time education; and

(c) any 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.

(3) Before making any modifications under subsection (1) above of any trust deed or other instrument the Secretary of State shall consult—

(a) where that deed or instrument, or any other instrument relating to or regulating the institution concerned, confers power on any persons to amend or replace that deed or instrument—

(i) the persons on whom that power is so conferred; and

(ii) if different, the persons responsible for the management of the institution; and

(b) in any other case, the persons so responsible;

in so far as it appears to him to be practicable to do so.

(4) Any provision of any instrument relating to any land or other property held for the purposes of any institution maintained or assisted by a local education authority to which this subsection applies which—

(a) confers on any person an option to acquire an interest in that land or other property; or

(b) provides (in whatever terms) for the determination or forfeiture of any such interest;

in the event of the institution’s ceasing to be maintained or assisted by a local education authority or (as the case may be) by the authority in question shall, if the institution becomes an institution within the PCFC funding sector or a grant-aided institution, have effect as if the event referred to were the institution’s ceasing to be a publicly funded institution.

(5) Subsection (4) above applies—

(a) to an institution maintained by a local education authority if it is an institution providing full-time education which is maintained by the authority in exercise of their further or higher education functions; and

(b) to an institution assisted by a local education authority if it is a designated assisted institution providing full-time education.

(6) In that subsection “publicly funded institution” means an institution which is an institution of any one or more of the following descriptions, that is to say—

(a) an institution maintained or assisted by a local education authority;

(b) an institution within the PCFC funding sector; and

(c) a grant-aided institution.