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SCHEDULES

Section 7.

SCHEDULE 1E+W+S Registered social landlords: regulation

Part IE+W Control of payments to members, &c

Payments by way of gift, dividend or bonusE+W

1(1)A registered social landlord shall not make a gift or pay a sum by way of dividend or bonus to—E+W

(a)a person who is or has been a member of the body,

(b)a person who is a member of the family of a person within paragraph (a), or

(c)a company of which a person within paragraph (a) or (b) is a director,

except as permitted by this paragraph.

(2)The following are permitted—

(a)the payment of a sum which, in accordance with the constitution or rules of the body, is paid as interest on capital lent to the body or subscribed by way of shares in the body;

(b)the payment by a fully mutual housing association to a person who has ceased to be a member of the association of a sum which is due to him either under his tenancy agreement with the association or under the terms of the agreement under which he became a member of the association.

[F1(c)the payment of a sum, in accordance with the constitution or rules of the body, to a registered social landlord which is a subsidiary or associate of the body.]

(3)Where [F2a registered society] or [F3a company] pays a sum or makes a gift in contravention of this paragraph, the society or company may recover the sum or the value of the gift, and proceedings for its recovery shall be taken if the [F4Relevant Authority] so directs.

Textual Amendments

F1Sch. 1 para. 1(2)(c) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 14

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F4Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Payments and benefits to officers and employees, &c.E+W

2(1)A registered social landlord which is [F2a registered society] or [F5a company] shall not make a payment or grant a benefit to—E+W

(a)an officer or employee of the society or company,

(b)a person who at any time within the preceding twelve months has been a person within paragraph (a),

(c)a close relative of a person within paragraph (a) or (b), or

(d)a business trading for profit of which a person falling within paragraph (a), (b) or (c) is a principal proprietor or in the management of which such a person is directly concerned,

except as permitted by this paragraph.

(2)The following are permitted—

(a)payments made or benefits granted to an officer or employee of the society or company under his contract of employment with the society or company;

(b)the payment of remuneration or expenses to an officer of the society or company who does not have a contract of employment with the society or company;

(c)any such payment as may be made in accordance with paragraph 1(2) (interest payable in accordance with the rules and certain sums payable by a fully mutual housing association to a person who has ceased to be a member);

(d)the grant or renewal of a tenancy by a co-operative housing association;

(e)where a tenancy of a house has been granted to, or to a close relative of, a person who later became an officer or employee, the grant to that tenant of a new tenancy whether of the same or another house;

(f)payments made or benefits granted in accordance with any determination made by the [F6Relevant Authority].

(3)A determination for the purposes of sub-paragraph (2)(f) may specify the class or classes of case in which a payment may be made or benefit granted and specify the maximum amount.

(4)Where a society or company pays a sum or grants a benefit in contravention of this paragraph, the society or company may recover the sum or value of the benefit; and proceedings for its recovery shall be taken if the [F6Relevant Authority] so directs.

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F6Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Commencement Information

I1Sch. 1 para. 2 wholly in force at 1.10.1996; Sch. 1 para. 2 not in force at Royal Assent; Sch. 1 para. 2(2)(f) in force for certain purposes at 1.8.1996 by S.I. 1996/2048, art. 3; Sch. 1 para. 2 in force at 1.10.1996 to the extent that it is not already in force by S.I. 1996/2404, art. 3 (subject to the transitional provisions and savings in the Sch. of that S.I.)

Maximum amounts payable by way of fees, expenses, &c.E+W

3(1)The [F7Relevant Authority] may from time to time specify the maximum amounts which may be paid by a registered social landlord which is [F2a registered society] or [F8a company] —E+W

(a)by way of fees or other remuneration, or by way of expenses, to a member of the society or company who is not an officer or employee of the society or company, or

(b)by way of remuneration or expenses to an officer of the society or company who does not have a contract of employment with the society or company.

(2)Different amounts may be so specified for different purposes.

(3)Where a society or company makes a payment in excess of the maximum permitted under this paragraph, the society or company may recover the excess, and proceedings for its recovery shall be taken if the [F7Relevant Authority] so directs.

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F7Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Commencement Information

I2Sch. 1 para. 3 wholly in force 1.10.1996; Sch. 1 para. 3 not in force at Royal Assent see s. 232(3); Sch. 1 para. 3(1)(2) in force at 1.8.1996 by 1996/2048, art. 2(1); Sch. 1 para. 3 in force at 1.10.1996 to the extent it is not already in force, by S.I. 1996/2402, art. 3 (subject to the transitional provisions in the Sch. to that S.I.)

Part IIE+W+S Constitution, change of rules, amalgamation and dissolution

General power to remove [F9officer] E+W

Textual Amendments

F9Words in Sch. 1 para. 4 heading substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 84(2), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

4(1)The [F10Relevant Authority] may, in accordance with the following provisions, by order remove [F11 an officer of a registered social landlord] —

F12(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The [F10Relevant Authority] may make an order removing any such person if—

(a)he has been adjudged bankrupt or [F13a debt relief order (under Part 7A of the Insolvency Act 1986) has been made in respect of him, or he] has made an arrangement with his creditors;

[F14(b)he is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002;]

(c)he is subject to an order under section 429(2) of the M1Insolvency Act 1986 (failure to pay under county court administration order);

(d)he is disqualified under [F15section 178 of the Charities Act 2011] from being a charity trustee;

(e)he is incapable of acting by reason of mental disorder;

(f)he has not acted; or

(g)he cannot be found or does not act and his absence or failure to act is impeding the proper management of the registered social landlord’s affairs.

(3)Before making an order the [F10Relevant Authority] shall give at least 14 days’ notice of its intention to do so to the person whom it intends to remove, and to the registered social landlord.

(4)That notice may be given by post, and if so given to the person whom the [F10Relevant Authority] intend to remove may be addressed to his last known address in the United Kingdom.

(5)A person who is ordered to be removed under this paragraph may appeal against the order to the High Court.

Textual Amendments

F10Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F11Words in Sch. 1 para. 4(1) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 84(3)(a), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F12Sch. 1 para. 4(1)(a)-(c) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), ss. 84(3)(b), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F15Words in Sch. 1 para. 4(2)(d) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 72(2) (with s. 20(2), Sch. 8)

Marginal Citations

Restriction on power of removal in case of registered charityE+W

5(1)The [F16Relevant Authority] may make an order under paragraph 4 removing [F17an officer] of a registered charity only if the charity has [F18 received public assistance] F19...

F20(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F17Words in Sch. 1 para. 5(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 84(4), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F19Words in Sch. 1 para. 5(1) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 13(a)(ii); S.I. 2011/2475, arts. 1(2), 2(v)

F20Sch. 1 para. 5(2) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 13(b); S.I. 2011/2475, arts. 1(2), 2(v)

Registered charity: power to appoint new [F21officer] E+W

Textual Amendments

F21Words in Sch. 1 para. 6 cross-heading substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(2), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

6(1)The [F22Relevant Authority] may by order appoint a person to be a [F23officer] of a registered social landlord which is a registered charity—

(a)in place of a person removed by the [F22Relevant Authority],

(b)where there are [F24no officers] , or

(c)where the [F22Relevant Authority] is of the opinion that it is necessary for the proper management of the charity’s affairs to have an additional [F25officer] .

The power conferred by paragraph (c) may be exercised notwithstanding that it will cause the maximum number of [F26officers] permissible under the charity’s constitution to be exceeded.

(2)The [F22Relevant Authority] shall only exercise its power under sub-paragraph (1) if—

(a)the charity has, at any time before the power is exercised, received [F27public assistance] , and

(b)the [F22Relevant Authority] has consulted the [F28Charity Commission] .

(3)A person may be so appointed notwithstanding any restrictions on appointment in the charity’s constitution or rules.

(4)A person appointed under this paragraph shall hold office for such period and on such terms as the [F22Relevant Authority] may specify; and on the expiry of the appointment the [F22Relevant Authority] may renew the appointment for such period as it may specify.

This does not prevent a person appointed under this paragraph from retiring in accordance with the charity’s constitution or rules.

(5)A person appointed under this paragraph as [F29an officer] of a registered charity is entitled—

(a)to attend, speak and vote at any general meeting of the charity and to receive all notices of and other communications relating to any such meeting which a member is entitled to receive,

(b)to move a resolution at any general meeting of the charity, and

(c)to require a general meeting of the charity to be convened within 21 days of a request to that effect made in writing to the directors or trustees.

Textual Amendments

F22Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F23Words in Sch. 1 para. 6(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(3)(a), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F24Words in Sch. 1 para. 6(1)(b) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(3)(b), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F25Words in Sch. 1 para. 6(1)(c) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(3)(c), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F26Words in Sch. 1 para. 6(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(3)(d), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F27Words in Sch. 1 para. 6(2)(a) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 14; S.I. 2011/2475, arts. 1(2), 2(v)

F28Words in Sch. 1 para. 6(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 192(2); S.I. 2007/309, art. 2, Sch.

F29Words in Sch. 1 para. 6(5) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(3)(e), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

Company: power to appoint new [F30officer] E+W

Textual Amendments

F30Word in Sch. 1 para. 7 cross-heading substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(4), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

7(1)The [F31Relevant Authority] may by order appoint a person to be [F32an officer] of a registered social landlord which is [F33a company] —

(a)in place of [F32an officer] removed by the [F31Relevant Authority],

(b)where there are [F34no officers] , or

(c)where the [F31Relevant Authority] is of the opinion that it is necessary for the proper management of the company’s affairs to have an additional [F35officer] .

(2)A person may be so appointed whether or not he is a member of the company and notwithstanding anything in the company’s articles of association.

(3)Where a person is appointed under this paragraph—

(a)he shall hold office for such period and on such terms as the [F31Relevant Authority] may specify, and

(b)on the expiry of the appointment the [F31Relevant Authority] may renew the appointment for such period as it may specify.

This does not prevent a person from retiring in accordance with the company’s articles of association.

[F36(4)A person appointed under this paragraph is entitled—

(a)to receive all such communications relating to a written resolution proposed to be agreed to by the company as are required to be supplied to a member of the company;

(b)to receive all notices of, and other communications relating to, any general meeting which a member of the company is entitled to receive, and to attend, speak and vote at any such meeting;

(c)to move a resolution at any general meeting of the company; and

(d)to require a general meeting of the company to be convened within 21 days of a request to that effect made in writing to the directors of the company.]

Textual Amendments

F31Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F32Words in Sch. 1 para. 7(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(5)(a), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F34Words in Sch. 1 para. 7(1)(b) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(5)(b), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F35Word in Sch. 1 para. 7(1)(c) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(5)(c), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

[F37Registered society]: power to appoint [F38officer] E+W

Textual Amendments

F37Words in Sch. 1 para. 8 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(2) (with Sch. 5)

F38Words in Sch. 1 para. 8 cross-heading substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(6), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

8(1)The [F39Relevant Authority] may by order appoint a person to be [F40an officer] of a registered social landlord which is [F2a registered society] —

(a)in place of a person removed by the [F39Relevant Authority],

(b)where there are [F41no officers], or

(c)where the [F39Relevant Authority] is of the opinion that it is necessary for the proper management of the society’s affairs to have an additional [F42officer] .

The power conferred by paragraph (c) may be exercised notwithstanding that it will cause the maximum number of [F43officers] permissible under the society’s constitution to be exceeded.

(2)A person may be so appointed whether or not he is a member of the society and, if he is not, notwithstanding that the rules of the society restrict appointment to members.

(3)A person appointed under this paragraph shall hold office for such period and on such terms as the [F39Relevant Authority] may specify; and on the expiry of the appointment the [F39Relevant Authority] may renew the appointment for such period as it may specify.

This does not prevent a person appointed under this paragraph from retiring in accordance with the rules of the society.

(4)A person appointed under this paragraph is entitled—

(a)to attend, speak and vote at any general meeting of the society and to receive all notices of and other communications relating to any general meeting which a member of the society is entitled to receive,

(b)to move a resolution at any general meeting of the society, and

(c)to require a general meeting of the society to be convened within 21 days of a request to that effect made in writing to the committee of the society.

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F39Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F40Words in Sch. 1 para. 8(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(7)(a), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F41Words in Sch. 1 para. 8(1) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(7)(d), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F42Words in Sch. 1 para. 8(1)(c) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(7)(c), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

F43Words in Sch. 1 para. 8(1)(b) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 85(7)(b), 90(2); S.I. 2011/2475, arts. 1(2), 2(s)

Change of rules, &c. by [F44registered society] E+W+S

Textual Amendments

F44Words in Sch. 1 para. 9 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(3) (with Sch. 5)

9(1)This paragraph applies to [F2a registered society] whose registration as a social landlord has been recorded by the [F45Financial Conduct Authority].E+W+S

(2)Notice shall be sent to the [F46Relevant Authority] of any change of the society’s name or of the situation of its registered office.

(3)Any other amendment of the society’s rules is not valid without the Corporation’s consent F47...

[F48(3A)Consent under sub-paragraph (3)—

(a)if given by the Housing Corporation, shall be given by order under its seal, and

(b)[F49Consent given by] the [F50Welsh Ministers] [F51under sub-paragraph (3)] , shall be given by order in writing.]

(4)A copy of that consent shall be sent with the copies of the amendment required by [F52section 16 of the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”)] to be sent to the [F45Financial Conduct Authority].

(5)[F53The 2014 Act] applies in relation to the provisions of this paragraph as if they were contained in [F54section 16] of that Act (amendment of registered rules).

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F46Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F47Words in Sch. 1 para. 9(3) repealed (1.11.1998) by 1998 c. 38, ss. 140, 152, Sch. 16 para. 96(2)(a), Sch. 18 Pt. VI (with ss. 137(1), 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F48Sch. 1 para. 9(3A) inserted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 96(2)(b) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F50Words in Sch. 1 para. 9(3A)(b) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 62(a), 325(1); S.I. 2010/862, art. 2 (with Sch.)

F52Words in Sch. 1 para. 9(4) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(4)(a) (with Sch. 5)

Modifications etc. (not altering text)

Change of objects by certain charitiesE+W

10(1)This paragraph applies to a registered social landlord—

(a)which is a registered charity and is not [F55a company] , and

(b)whose registration under this Part of this Act has been recorded by the [F56Charity Commission] in accordance with section 3(3).

(2)No power contained in the provisions establishing the registered social landlord as a charity, or regulating its purposes or administration, to vary or add to its objects may be exercised without the consent of the [F56Charity Commission] .

Before giving [F57its] consent the [F56Charity Commission] shall consult the [F58Relevant Authority].

Textual Amendments

F56Words in Sch. 1 para. 10(1)(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 192(3)(a); S.I. 2007/309, art. 2, Sch.

F57Word in Sch. 1 para. 10(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 192(3)(b); S.I. 2007/309, art. 2, Sch.

F58Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Change of [F59articles] of companyE+W

Textual Amendments

11(1)This paragraph applies to [F60a company (including a company that is a registered charity)] whose registration as a social landlord has been recorded by the registrar of companies.

(2)Notice shall be sent to the [F61Relevant Authority] of any change of the company’s name or of the address of its registered office.

(3)Any other alteration of the company’s [F62articles] of which notice is required to be given to the registrar of companies is not valid without the Corporation’s consent F63...

[F64(3A)Consent under sub-paragraph (3)—

(a)if given by the Housing Corporation, shall be given by order under its seal, and

(b)[F65Consent given by] the [F66Welsh Ministers] [F67under sub-paragraph (3)] , shall be given by order in writing.]

(4)A copy of that consent shall be sent [F68with the copy of the resolution making the alterations that is required to be sent to the registrar of companies under section 30 of the Companies Act 2006] .

Textual Amendments

F61Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F63Words in Sch. 1 para. 11(3) repealed (1.11.1998) by 1998 c. 38, ss. 140, 152, Sch. 16 para. 96(2)(a), Sch. 18 Pt.VI (with ss. 137(1), 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F64Sch. 1 para. 11(3A) inserted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 96(2)(b) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F66Words in Sch. 1 para. 11(3A)(b) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 62(a), 325(1); S.I. 2010/862, art. 2 (with Sch.)

Modifications etc. (not altering text)

Amalgamation and dissolution &c. of [F69registered society]E+W+S

Textual Amendments

F69Words in Sch. 1 para. 12 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(5) (with Sch. 5)

12(1)This paragraph applies to [F2a registered society] whose registration as a social landlord has been recorded by the [F70Financial Conduct Authority].E+W

(2)The [F70Financial Conduct Authority] shall not register a special resolution which is passed for the purposes of—

[F71(a)section 109 of the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”) (amalgamation of societies),

(b)section 110 of that Act (transfer of engagements between societies), or

(c)section 112 of that Act (conversion of society into a company etc),]

unless, together with the copy of the resolution, there is sent to [F72it] a copy of the [F73Relevant Authority’s] consent to the amalgamation, transfer or conversion.

(3)Any new body created by the amalgamation or conversion or, in the case of a transfer of engagements, the transferee, shall be deemed to be registered as a social landlord forthwith upon the amalgamation, conversion or transfer taking effect.

(4)If the society resolves by special resolution that it be wound up voluntarily under the M2Insolvency Act 1986, the resolution has no effect unless—

(a)before the resolution was passed the [F73Relevant Authority] gave its consent to its passing, and

(b)a copy of the consent is forwarded to the [F70Financial Conduct Authority] together with a copy of the resolution required to be so forwarded in accordance with [F74section 123(3)(a) of the 2014 Act.]

(5)If the society is to be dissolved by instrument of dissolution, the [F70Financial Conduct Authority] shall not—

(a)register the instrument in accordance with [F75section 121 of the 2014 Act], or

(b)cause notice of the dissolution to be advertised in accordance with [F76section 122] of that Act,

unless together with the instrument there is sent to [F77it] a copy of the [F73Relevant Authority’s] consent to its making.

(6)The references in this paragraph to the [F73Relevant Authority’s] consent [F78are—

(a)if it is given by the Housing Corporation, to consent given by order under its seal, and

(b)[F79Consent given by] the [F80Welsh Ministers] [F81under this paragraph shall be] given by order in writing.]

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F72Word in Sch. 1 para. 12(2) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 357(3)(b)(ii)

F73Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F74Words in Sch. 1 para. 12(4)(b) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(6)(b) (with Sch. 5)

F77Word in Sch. 1 para. 12(5) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 357(3)(d)(ii)

F78Sch. 1 para. 12(6)(a)(b) and the word “are” immediately preceding substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 96(3) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 5.

F80Words in Sch. 1 para. 12(6) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 15; S.I. 2011/2475, arts. 1(2), 2(v)

Modifications etc. (not altering text)

Marginal Citations

Arrangement, reconstruction, &c. of companyE+W

13(1)This paragraph applies to [F82a company] whose registration as a social landlord has been recorded by the registrar of companies.

(2)An order of the court given for the purposes of [F83section 899 of the Companies Act 2006] (compromise or arrangement with creditors or members) is not effective unless the [F84Relevant Authority] has given its consent.

A copy of the consent shall be sent to the registrar of companies along with the office copy of the order delivered to him under that section.

(3)An order of the court given for the purposes of [F85section 900 of the Companies Act 2006] (transfer of undertaking or property for purposes of reconstruction or amalgamation) is not effective unless the [F84Relevant Authority] has given its consent.

A copy of the consent shall be sent to the registrar of companies along with the office copy of the order delivered to him under that section.

(4)The registrar of companies shall not register any resolution under [F86section 115 of the Co-operative and Community Benefit Societies Act 2014 (conversion of company into registered society)], unless, together with the copy of the resolution, there is sent to him a copy of the [F84Relevant Authority’s] consent to the conversion.

(5)Where a director, administrator or liquidator of the company proposes to make a voluntary arrangement with the company’s creditors under section 1 of the M3Insolvency Act 1986, the arrangement shall not take effect under section 5 (effect of approval by members and creditors) of that Act unless the [F84Relevant Authority] has given its consent to the voluntary arrangement.

(6)If the company resolves by special resolution that it be wound up voluntarily under the Insolvency Act 1986, the resolution has no effect unless—

(a)before the resolution was passed the [F84Relevant Authority] gave its consent to its passing, and

(b)a copy of the consent is forwarded to the registrar of companies together with a copy of the resolution required to be so forwarded in accordance with [F87section 30 of the Companies Act 2006] .

(7)The references in this paragraph to the [F84Relevant Authority’s] consent [F88are—

(a)if it is given by the Housing Corporation, to consent given by order under its seal, and

(b)[F89Consent given by] the [F90Welsh Ministers] [F91under this paragraph shall be] given by order in writing.]

(8)Where sub-paragraph (3) or (4) applies, the transferee or, as the case may be, any new body created by the conversion shall be deemed to be registered as a social landlord forthwith upon the transfer or conversion taking effect.

Textual Amendments

F84Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F88Sch. 1 para. 13(7)(a)(b) and the word “are” immediately preceding substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 96(3) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F90Words in Sch. 1 para. 13(7)(b) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 16; S.I. 2011/2475, arts. 1(2), 2(v)

Modifications etc. (not altering text)

Marginal Citations

[F92Relevant Authority’s] power to petition for winding upU.K.

Textual Amendments

F92Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

14(1)The [F93Relevant Authority] may present a petition for the winding up under the Insolvency Act 1986 of a registered social landlord which is—U.K.

[F94(a)a company (including a company that is a registered charity), or]

(b)[F2a registered society] (to which the winding up provisions of the M4Insolvency Act 1986 apply in accordance with [F95section 123 of the Co-operative and Community Benefit Societies Act 2014]),

on either of the following grounds.

(2)The grounds are—

(a)that the landlord is failing properly to carry out its purposes or objects, or

(b)that the landlord is unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986.

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F93Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Marginal Citations

Transfer of net assets on dissolution or winding upE+W+S

15(1)This paragraph applies—E+W+S

(a)where a registered social landlord which is [F2a registered society] is dissolved as mentioned in [F96section 119 or 123 of the Co-operative and Community Benefit Societies Act 2014 (dissolution by instrument of dissolution or by winding up)], and

(b)where a registered social landlord which is [F97a company (including a company that is a registered charity)] is wound up under the Insolvency Act 1986.

(2)On such a dissolution or winding-up, so much of the property of the society or company as remains after meeting the claims of its creditors and any other liabilities arising on or before the dissolution or winding-up shall be transferred to the [F98Relevant Authority] or, if the [F98Relevant Authority] so directs, to a specified registered social landlord.

The above provision has effect notwithstanding anything in [F99the Co-operative and Community Benefit Societies Act 2014], [F100the Companies Act 2006] or the Insolvency Act 1986, or in the rules of the society or, as the case may be, in the [F100articles] of the company.

(3)In order to avoid the necessity for the sale of land belonging to the registered social landlord and thereby secure the transfer of the land under this paragraph, the [F98Relevant Authority] may, if it appears to it appropriate to do so, make payments to discharge such claims or liabilities as are referred to in sub-paragraph (2).

(4)Where the registered social landlord which is dissolved or wound up is a charity, the [F98Relevant Authority] may dispose of property transferred to it by virtue of this paragraph only to another registered social landlord—

(a)which is also a charity, and

(b)the objects of which appear to the [F98Relevant Authority] to be, as nearly as practicable, akin to those of the body which is dissolved or wound up.

[F101(5)In any other case the Welsh Ministers may dispose of property transferred to them by virtue of this paragraph to a registered social landlord.]

(6)Where property transferred to the [F98Relevant Authority] by virtue of this paragraph includes land subject to an existing mortgage or charge (whether in favour of the [F98Relevant Authority] or not), the [F98Relevant Authority] may, in exercise of its powers under Part III of the M5Housing Associations Act 1985, dispose of the land either—

(a)subject to that mortgage or charge, or

(b)subject to a new mortgage or charge in favour of the [F98Relevant Authority] securing such amount as appears to the [F98Relevant Authority] to be appropriate in the circumstances.

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

F98Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Marginal Citations

[F102Transfer of net assets on termination of charity not within paragraph 15(1)E+W+S

Textual Amendments

F102Sch. 1 para. 15A and preceding cross-heading inserted (18.11.2004 for specified purposes) by Housing Act 2004 (c. 34), s. 270(2)(b), Sch. 11 para. 16

15A(1)The [F103 Welsh Ministers] may by regulations provide for any provisions of paragraph 15(2) to (6) to apply in relation to a registered social landlord within sub-paragraph (2)—E+W+S

(a)in such circumstances, and

(b)with such modifications,

as may be specified in the regulations.

(2)A registered social landlord is within this sub-paragraph if—

(a)it is a registered charity, and

(b)it does not fall within sub-paragraph (1) of paragraph 15.

(3)Regulations under this paragraph may in particular provide that any provision of the regulations requiring the transfer of any property of the charity is to have effect notwithstanding—

(a)anything in the terms of its trusts, or

(b)any resolution, order or other thing done for the purposes of, or in connection with, the termination of the charity in any manner specified in the regulations.

(4)Any regulations under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of [F104the National Assembly for Wales] .]

Textual Amendments

F103Words in Sch. 1 para. 15A(1) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 62(a), 325(1); S.I. 2010/862, art. 2 (with Sch.)

F104Words in Sch. 1 para. 15A(4) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 63, 325(1); S.I. 2010/862, art. 2 (with Sch.)

[F105Management etcE+W

Textual Amendments

F105Sch. 1 para. 15B and cross-heading inserted (18.10.2011 for specified purposes, 2.12.2011 in so far as not already in force) by Housing (Wales) Measure 2011 (nawm 5), ss. 72, 90(2); S.I. 2011/2475, arts. 1(2), 2(o), 3(h)

Management tenderE+W

15B(1)This paragraph applies if the Welsh Ministers are satisfied that—

(a)a registered social landlord has failed to meet a standard under section 33A, or

(b)there has been misconduct or mismanagement in the affairs of the registered social landlord.

(2)But this paragraph does not apply where the misconduct or mismanagement relates only to the registered social landlord's provision of housing in England.

(3)The Welsh Ministers may require the registered social landlord to implement a process specified by them for the purpose of—

(a)inviting persons to apply to undertake management functions of the registered social landlord, and

(b)selecting from the applications and making an appointment.

(4)A requirement may relate to—

(a)the registered social landlord's affairs generally, or

(b)specified affairs.

(5)A requirement must include—

(a)provision about the constitution of a selection panel (which must include provision for ensuring representation of tenants' interests),

(b)provision for ensuring best procurement practice (and consistent with any applicable procurement law), and

(c)provision about the terms and conditions on which the manager is to be appointed (including provision about—

(i)setting, monitoring and enforcing performance standards, and

(ii)resources).]

Management tender: supplementalE+W

[F10615C(1)Before acting under paragraph 15B(3) the Welsh Ministers must give the registered social landlord a notice—

(a)specifying grounds on which action might be taken under that paragraph,

(b)warning the landlord that the Welsh Ministers are considering action under that paragraph, and

(c)explaining the effect of this paragraph.

(2)The notice must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

(3)The period must—

(a)be a period of at least 28 days, and

(b)begin with the date on which the registered social landlord receives the notice.

(4)The Welsh Ministers must send a copy of a notice under sub-paragraph (1) to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).

(5)A notice under sub-paragraph (1) must—

(a)refer to section 6A, and

(b)indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, action under paragraph 15B(3).

(6)Notice under sub-paragraph (1) may be combined with notice under one or more of the following—

(a)sections 50K and 50S,

(b)paragraphs 15E and 15G.

(7)In imposing a requirement the Welsh Ministers must have regard to views of—

(a)relevant tenants,

(b)the registered social landlord, and

(c)if they think it appropriate, any relevant local housing authority.

(8)A registered social landlord may appeal to the High Court against a requirement under paragraph 15B(3).]

Textual Amendments

Management transferE+W

[F10715D(1)This paragraph applies if, as a result of an inquiry under paragraph 20 or an audit under paragraph 22, the Welsh Ministers are satisfied that—

(a)there has been misconduct or mismanagement in the affairs of the registered social landlord, or

(b)a transfer of certain of a registered social landlord's management functions would be likely to improve the management of some or all of its affairs.

(2)But this paragraph does not apply where—

(a)the misconduct or mismanagement relates only to the registered social landlord's provision of housing in England, or

(b)the transfer would be likely to improve the registered social landlord's management of its affairs only in relation to the provision of housing in England.

(3)The Welsh Ministers may require the registered social landlord to transfer management functions to a specified person.

(4)A requirement may relate to—

(a)the registered social landlord's affairs generally, or

(b)specified affairs.

(5)Transfer is to be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the requirement.

(6)A transferee manager is to have—

(a)any power specified in the requirement, and

(b)any other power in relation to the registered social landlord's affairs required by the manager for the purposes specified in the requirement (including the power to enter into agreements and take other action on behalf of the registered social landlord).]

Textual Amendments

Management transfer: supplementalE+W

[F10815E(1)Before acting under paragraph 15D(3) the Welsh Ministers must give the registered social landlord a notice—

(a)specifying grounds on which action might be taken under that paragraph,

(b)warning the landlord that the Welsh Ministers are considering action under that paragraph, and

(c)explaining the effect of this paragraph.

(2)The notice must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

(3)The period must—

(a)be a period of at least 28 days, and

(b)begin with the date on which the registered social landlord receives the notice.

(4)The Welsh Ministers must send a copy of a notice under sub-paragraph (1) to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).

(5)A notice under sub-paragraph (1) must—

(a)refer to section 6A, and

(b)indicate whether or to what extent the social landlord would accept a voluntary undertaking instead of, or in mitigation of, action under paragraph 15D(3).

(6)Notice under sub-paragraph (1) may be combined with notice under one or more of the following—

(a)sections 50K and 50S,

(b)paragraphs 15C and 15G.

(7)In imposing a requirement the Welsh Ministers must have regard to views of—

(a)relevant tenants,

(b)the registered social landlord, and

(c)if they think it appropriate, any relevant local housing authority.

(8)A registered social landlord may appeal to the High Court against a requirement under paragraph 15D(3).]

Textual Amendments

Appointment of manager of registered social landlordE+W

[F10915F(1)This paragraph applies if the Welsh Ministers are satisfied that—

(a)a registered social landlord has failed to meet a standard under section 33A, or

(b)there has been misconduct or mismanagement in the affairs of the registered social landlord.

(2)But this paragraph does not apply where the misconduct or mismanagement relates only to the registered social landlord's provision of housing in England.

(3)The Welsh Ministers may—

(a)appoint an individual as a manager of the registered social landlord, or

(b)require the registered social landlord to appoint an individual as a manager.

(4)An appointment or requirement may relate to the management of —

(a)the registered social landlord's affairs generally, or

(b)specified affairs.

(5)Appointment is to be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.

(6)A manager is to have—

(a)any power specified in the appointment or requirement, and

(b)any other power in relation to the registered social landlord's affairs required by the manager for the purposes specified in the appointment or requirement (including the power to enter into agreements and take other action on behalf of the registered social landlord).]

Textual Amendments

F109Sch. 1 para. 15F inserted (18.10.2011 for specified purposes, 2.12.2011 in so far as not already in force) by Housing (Wales) Measure 2011 (nawm 5), ss. 76, 90(2); S.I. 2011/2475, arts. 1(2), 2(q), 3(i)

Appointment of manager: supplementalE+W

[F11015G(1)Before acting under paragraph 15F(3) the Welsh Ministers must give the registered social landlord a notice—

(a)specifying grounds on which action might be taken under that paragraph,

(b)warning the landlord that the Welsh Ministers are considering action under that paragraph, and

(c)explaining the effect of this paragraph.

(2)The notice must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

(3)The period must—

(a)be a period of at least 28 days, and

(b)begin with the date on which the registered social landlord receives the notice.

(4)The Welsh Ministers must send a copy of a notice under sub-paragraph (1) to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).

(5)A notice under sub-paragraph (1) must—

(a)refer to section 6A, and

(b)indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, action under paragraph 15F(3).

(6)Notice under sub-paragraph (1) may be combined with notice under one or more of the following—

(a)sections 50K and 50S,

(b)paragraphs 15C and 15E.

(7)The Welsh Ministers may require a manager to report to them on the affairs specified in the appointment or requirement under paragraph 15F(3).

(8)A registered social landlord may appeal to the High Court against an appointment or requirement under paragraph 15F(3).]

Textual Amendments

AmalgamationE+W

[F11115H(1)This paragraph applies if as a result of an inquiry under paragraph 20 or an audit under paragraph 22, the Welsh Ministers are satisfied that—

(a)there has been misconduct or mismanagement in the affairs of a registered social landlord which is [F2a registered society] , or

(b)the management of the affairs of a registered social landlord which is [F2a registered society] would be improved if the landlord were amalgamated with [F112another registered society] .

(2)But this paragraph does not apply where—

(a)the misconduct or mismanagement relates only to the registered social landlord's provision of housing in England, or

(b)the amalgamation would improve the management of the registered social landlord's affairs only in relation to the provision of housing in England.

(3)The Welsh Ministers may make and execute on behalf of the society an instrument providing for the amalgamation of the society with [F113another registered society] .

(4)An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a special resolution by S1 under [F114section 109 of the Co-operative and Community Benefit Societies Act 2014] (amalgamation of societies by special resolution).

(5)A copy of an instrument must be sent to and registered by the [F115Financial Conduct Authority].

(6)An instrument does not take effect until the copy is registered.

(7)The copy must be sent for registration during the period of 14 days beginning with the date of execution, but a copy registered after that period is valid.

(8)Any body created by virtue of an amalgamation must be registered as a social landlord by the Welsh Ministers, and pending registration is to be treated as registered.]

Textual Amendments

F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)

Part IIIE+W+S Accounts and audit

General requirements as to accounts and auditE+W

16(1)The [F116Relevant Authority] may from time to time determine accounting requirements for registered social landlords with a view to ensuring that the accounts of every registered social landlord—E+W

(a)are prepared in a proper form, and

(b)give a true and fair view of—

(i)the state of affairs of the landlord, so far as its housing activities are concerned, and

(ii)the disposition of funds and assets which are, or at any time have been, in its hands in connection with those activities.

(2)The [F116Relevant Authority] by a determination under sub-paragraph (1) may lay down a method by which a registered charity is to distinguish in its accounts between its housing activities and other activities.

(3)The accounts of every registered social landlord shall comply with the requirements laid down under this paragraph.

F117(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F118(5)Every registered social landlord shall furnish to the Relevant Authority—

(a)a copy of its accounts, and

(b)(subject to sub-paragraph (7)) a copy of the auditor’s report in respect of them,

within six months of the end of the period to which they relate.

(6)The auditor’s report shall state, in addition to any other matters which it is required to state, whether in the auditor’s opinion the accounts comply with the requirements laid down under this paragraph.

(7)The provisions of sub-paragraphs (5)(b) and (6) do not apply where, by virtue of any enactment—

(a)any accounts of a registered social landlord are not required to be audited, and

(b)instead a report is required to be prepared in respect of them by a person appointed for the purpose (“the reporting accountant”),

and sub-paragraph (8) shall apply in place of those provisions.

(8)In such a case—

(a)the registered social landlord shall furnish to the Relevant Authority a copy of the reporting accountant’s report in respect of the accounts within six months of the end of the period to which they relate; and

(b)that report shall state, in addition to any other matters which it is required to state, whether in the reporting accountant’s opinion the accounts comply with the requirements laid down under this paragraph.]

Textual Amendments

F116Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F117Sch. 1 para. 16(4) repealed (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 17(2), Sch. 16

F118Sch. 1 para. 16(5)-(8) substituted for Sch. 1 para. 16(5) (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 17(3)

Modifications etc. (not altering text)

C5Sch. 1 para. 16(3)-(5) extended (16.9.1996) by S.I. 1996/2402, art. 3, Sch. para. 5

Commencement Information

I3Sch. 1 para. 16 wholly in force 1.10.1996; Sch. 1 para. 16 not in force at Royal Assent see s. 232(3) ; Sch. 1 para. 16(1)(2) in force at 1.8.1996 by 1996/2048, art. 2(1); Sch. 1 para. 16 in force at 1.10.1996 to the extent not already in force, by S.I. 1996/2402, art. 3 (subject to the transitional savings in the Sch. to that S.I.)

[F119Companies exempt from audit requirements: accountant’s reportE+W+S

Textual Amendments

F119Sch. 1 para. 16A and cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 18

[F12016A(1)This paragraph applies to a registered social landlord that—E+W+S

(a)is a company,

(b)is exempt from the audit requirements of the Companies Act 2006 by virtue of section 477 of that Act (small companies’ exemption), and

(c)is not a charity.

(2)The directors of the company must cause a report to be prepared in accordance with paragraph 16B and made to the company’s members in respect of the company’s individual accounts for any year in which the company takes advantage of its exemption from audit.

(3)The Relevant Authority may, in respect of any such financial year, give a direction to the company requiring it—

(a)to appoint a qualified auditor to audit its accounts and balance sheet for that year, and

(b)to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction.

(4)A direction under sub-paragraph (3) may not be given until after the end of the financial year to which it relates.

Textual Amendments

F120Sch. 1 paras. 16A-16E substituted for Sch. 1 para. 16A (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 202(3) (with arts. 6, 11, 12)

16B.(1)The report required for the purposes of paragraph 16A(2) must be prepared by a person (“the reporting accountant”) who is eligible under paragraph 16C.E+W+S

(2)The report must state whether in the opinion of the reporting accountant making it—

(a)the accounts of the company for the financial year in question are in agreement with the accounting records kept by the company under section 386 of the Companies Act 2006, and

(b)having regard only to, and on the basis of, the information contained in those accounting records, those accounts have been drawn up in a manner consistent with the provisions of Part 15 of that Act, so far as applicable to the company.

(3)The report must also state that in the opinion of the reporting accountant, having regard only to, and on the basis of, the information contained in the accounting records kept by the company under section 386 of the Companies Act 2006, the company is entitled to exemption from audit under section 477 of that Act (small companies’ exemption) for the financial year in question.

(4)The report must state the name of the reporting accountant and be signed and dated.

(5)The report must be signed—

(a)where the reporting accountant is an individual, by that individual;

(b)where the reporting accountant is a firm, for and on behalf of the firm by an individual authorised to do so.

Textual Amendments

F120Sch. 1 paras. 16A-16E substituted for Sch. 1 para. 16A (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 202(3) (with arts. 6, 11, 12)

16C.(1)The reporting accountant must be either—E+W+S

(a)a member of a body listed in sub-paragraph (4) who, under the rules of the body—

(i)is entitled to engage in public practice, and

(ii)is not ineligible for appointment as a reporting accountant, or

(b)any person (whether or not a member of any such body) who—

(i)is subject to the rules of any such body in seeking appointment or acting as a statutory auditor under Part 42 of the Companies Act 2006, and

(ii)under those rules, is eligible for such appointment.

(2)In sub-paragraph (1), references to the rules of a body listed in sub-paragraph (4) are to the rules (whether or not laid down by the body itself) which the body has power to enforce and which are relevant for the purposes of Part 42 of the Companies Act 2006 (statutory auditors) or this paragraph.

This includes rules relating to the admission and expulsion of members of the body, so far as relevant for the purposes of that Part or this paragraph.

(3)An individual or a firm may be appointed as a reporting accountant, and section 1216 of the Companies Act 2006 (effect of appointment of partnership) applies to the appointment as reporting accountant of a partnership constituted under the law of England and Wales or Northern Ireland, or under the law of any other country or territory in which a partnership is not a legal person.

(4)The bodies referred to in sub-paragraphs (1) and (2) are—

(a)the Institute of Chartered Accountants in England and Wales,

(b)the Institute of Chartered Accountants of Scotland,

(c)the Institute of Chartered Accountants in Ireland,

(d)the Association of Chartered Certified Accountants,

(e)the Association of Authorised Public Accountants,

(f)the Association of Accounting Technicians,

(g)the Association of International Accountants,

(h)the Chartered Institute of Management Accountants, and

(i)the Institute of Chartered Secretaries and Administrators.

(5)The Secretary of State may by order amend sub-paragraph (4) by adding or removing a body to or from the list in that sub-paragraph or by varying any entry for the time being included in that list.

(6)An order under sub-paragraph (5) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7)A person may not be appointed by a company as reporting accountant if he would be prohibited from acting as auditor of that company by virtue of section 1214 of the Companies Act 2006 (independence requirement).

Textual Amendments

F120Sch. 1 paras. 16A-16E substituted for Sch. 1 para. 16A (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 202(3) (with arts. 6, 11, 12)

16D.(1)The provisions of the Companies Act 2006 listed in sub-paragraph (2) apply to the reporting accountant and a reporting accountant’s report as they apply to an auditor of the company and an auditor’s report on the company’s accounts, subject to any necessary modifications.E+W+S

(2)The provisions are—

(a)sections 423 to 425 (duty to circulate copies of annual accounts);

(b)sections 431 and 432 (right of member or debenture holder to demand copies of accounts);

(c)sections 434 to 436 (requirements in connection with publication of accounts);

(d)sections 437 and 438 (public companies: laying of accounts before general meeting);

(e)sections 441 to 444 (duty to file accounts with registrar of companies);

(f)section 454(4)(b) and regulations made under that provision (functions of auditor in relation to revised accounts);

(g)sections 499 to 501 (auditor’s right to information);

(h)sections 505 and 506 (name of auditor to be stated in published copies of report).

(3)In sections 505 and 506 as they apply by virtue of this paragraph in a case where the reporting accountant is a firm, any reference to the senior statutory auditor shall be read as a reference to the person who signed the report on behalf of the firm.

Textual Amendments

F120Sch. 1 paras. 16A-16E substituted for Sch. 1 para. 16A (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 202(3) (with arts. 6, 11, 12)

16E.E+W+SIn paragraphs 16A to 16D—

Textual Amendments

F120Sch. 1 paras. 16A-16E substituted for Sch. 1 para. 16A (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 202(3) (with arts. 6, 11, 12)

[F121[F122Registered societies] exempt from audit requirements: accountant’s reportE+W+S

Textual Amendments

F121Sch. 1 para. 17 and cross-heading substituted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 19

F122Words in Sch. 1 para. 17 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(11) (with Sch. 5)

17(1)This paragraph applies to registered social landlords which are [F123registered societies].E+W+S

[F124(2)Section 85 of the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”) (duty to obtain accountant's report) has effect, in its application to such a landlord, with the omission of subsection (1)(b) (accountant's report required only where turnover exceeds a specified sum).]

(3)The Relevant Authority may, in respect of any relevant year of account of such a landlord, give a direction to the landlord requiring it—

(a)to appoint a qualified auditor to audit its accounts and balance sheet for that year, and

(b)to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction.

(4)For the purposes of sub-paragraph (3), a year of account of a landlord is a “relevant year of account”if—

(a)it precedes that in which the direction is given, and

[F125(b)section 83 of the 2014 Act (duty to appoint auditors) did not apply for the year because of a resolution under section 84 of that Act (power to disapply auditing requirements).]

[F126(5)In this paragraph “qualified auditor” and “year of account” have the same meaning as in Part 7 of the 2014 Act (for “year of account” see sections 77 and 78 of that Act).]]

Textual Amendments

F123Words in Sch. 1 para. 17(1) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 65(12)(a) (with Sch. 5)

Accounting and audit [F127 or reporting ] requirements for charitiesE+W

Textual Amendments

F127Words in Sch. 1 para. 18 cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 20(2)

18(1)A registered social landlord which is a registered charity shall, in respect of its housing activities (and separately from its other activities, if any), be subject to the following provisions F128...E+W

F128...

(2)The charity shall in respect of its housing activities—

(a)cause to be kept properly books of account showing its transactions and its assets and liabilities, and

(b)establish and maintain a satisfactory system of control of its books of accounts, its cash holdings and all its receipts and remittances.

The books of account must be such as to enable a true and fair view to be given of the state of affairs of the charity in respect of its housing activities, and to explain its transactions in the course of those activities.

(3)The charity shall for each period of account prepare—

(a)a revenue account giving a true and fair view of the charity’s income and expenditure in the period, so far as arising in connection with its housing activities, and

(b)a balance sheet giving a true and fair view as at the end of the period of the state of the charity’s affairs.

The revenue account and balance sheet must be signed by at least two directors or trustees of the charity.

[F129[F130(4)The charity must appoint a qualified auditor (“the auditor”) to audit the accounts prepared in accordance with sub-paragraph (3) in respect of each period of account in which—

(a)the charity's gross income arising in connection with its housing activities exceeds the sum for the time being specified in section 144(1)(a) of the Charities Act 2011, or

(b)the charity's gross income arising in that connection exceeds the accounts threshold and at the end of that period the aggregate value of its assets (before deduction of liabilities) in respect of its housing activities exceeds the sum for the time being specified in section 144(1)(b) of that Act;

and in this sub-paragraph “gross income” and “accounts threshold” have the same meanings as in section 144 of that Act.]

(4A)Where sub-paragraph (4) does not apply in respect of a period of account, the charity must appoint a qualified auditor (“the reporting accountant”) to make such a report as is mentioned in paragraph 18A(1) in respect of the period of account.

[F131(4B)In sub-paragraphs (4) and (4A) “qualified auditor” means a person who—

(a)is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, and

(b)if the appointment were an appointment as a statutory auditor, would not be prohibited from acting by virtue of section 1214 of that Act (independence requirement).]]

(5)The auditor shall make a report to the charity on the accounts audited by him, stating whether in his opinion—

(a)the revenue account gives a true and fair view of the state of income and expenditure of the charity in respect of its housing activities and of any other matters to which it relates, and

(b)the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period of account.

(6)The auditor in preparing his report shall carry out such investigations as will enable him to form an opinion as to the following matters—

(a)whether the association has kept, in respect of its housing activities, proper books of account in accordance with the requirements of this paragraph,

(b)whether the charity has maintained a satisfactory system of control over its transactions in accordance with those requirements, and

(c)whether the accounts are in agreement with the charity’s books;

and if he is of opinion that the charity has failed in any respect to comply with this paragraph, or if the accounts are not in agreement with the books, he shall state that fact in his report.

(7)The auditor—

(a)has a right of access at all times to the books, deeds and accounts of the charity, so far as relating to its housing activities, and to all other documents relating to those activities, and

(b)is entitled to require from officers of the charity such information and explanations as he thinks necessary for the performance of his duties;

and if he fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report.

(8)A period of account for the purposes of this paragraph is twelve months or such other period not less than six months or more than 18 months as the charity may, with the consent of the [F132Relevant Authority], determine.

Textual Amendments

F128Words in Sch. 1 para. 18(1) repealed (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 20(3), Sch. 16

F129Sch. 1 para. 18(4)-(4B) substituted for Sch. 1 para. 18(4) (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 20(4)

F130Sch. 1 para. 18(4) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 72(3) (with s. 20(2), Sch. 8)

F132Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

[F133Charities exempt from audit requirements: accountant’s reportE+W+S

Textual Amendments

F133 Sch. 1 para. 18A and cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 21

18A(1)The report referred to in paragraph 18(4A) is a report—E+W+S

(a)relating to the charity’s accounts prepared in accordance with paragraph 18(3) in respect of the period of account in question, and

(b)complying with sub-paragraphs (2) and (3) below.

(2)The report must state whether, in the opinion of the reporting accountant—

(a)the revenue account or accounts and the balance sheet are in agreement with the books of account kept by the charity under paragraph 18(2),

(b)on the basis of the information contained in those books of account, the revenue account or accounts and the balance sheet comply with the requirements of [F134the Charities Act 2011], and

(c)on the basis of the information contained in those books of account, paragraph 18(4A) applied to the charity in respect of the period of account in question.

(3)The report must also state the name of the reporting accountant and be signed by him.

(4)Paragraph 18(7) applies to the reporting accountant and his functions under this paragraph as it applies to an auditor and his functions under paragraph 18.

(5)The Relevant Authority may, in respect of a relevant period of account of a charity, give a direction to the charity requiring it—

(a)to appoint a qualified auditor to audit its accounts for that period, and

(b)to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction;

and paragraph 18(5) to (7) apply to an auditor so appointed as they apply to an auditor appointed under paragraph 18.

(6)For the purposes of sub-paragraph (5), a period of account of a charity is a relevant period of account if—

(a)it precedes that in which the direction is given; and

(b)paragraph 18(4A) applied in relation to it.

(7)In this paragraph “period of account” and “qualified auditor” have the same meaning as in paragraph 18(4A).]

Textual Amendments

F134Words in Sch. 1 para. 18A(2)(b) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 72(4) (with s. 20(2), Sch. 8)

Responsibility for securing compliance with accounting requirementsE+W

19(1)Every responsible person, that is to say, every person who—E+W

(a)is directly concerned with the conduct and management of the affairs of a registered social landlord, and

(b)is in that capacity responsible for the preparation and audit of accounts,

shall ensure that paragraph 16 (general requirements as to accounts and audit) and, where applicable, paragraph 18 (accounting and audit requirements for charities) are complied with by the registered social landlord.

(2)If—

(a)paragraph 16(5) (furnishing of accounts and auditor’s report) is not complied with,

(b)the accounts furnished to the [F135Relevant Authority] under that provision do not comply with the accounting requirements laid down under paragraph 16(1),

(c)paragraph 18 (accounting and audit [F136 or reporting ] requirements for charities), where applicable, is not complied with,

F137(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)any notice under section 26 (information relating to disposal proceeds fund) is not complied with,

every responsible person, and the registered social landlord itself, commits a summary offence and is liable on conviction to a fine not exceeding [F138 level 5 ] on the standard scale.

(3)In proceedings for an offence under this paragraph it is a defence—

(a)for a responsible person to prove that he did everything that could reasonably have been expected of him by way of discharging the relevant duty;

(b)for a registered social landlord to prove that every responsible person did everything that could reasonably have been expected of him by way of discharging the relevant duty in relation to the registered social landlord.

(4)Proceedings for an offence under this paragraph may be brought only by or with the consent of the [F135Relevant Authority] or the Director of Public Prosecutions.

[F139(5)Where any of paragraphs (a) to (e) of sub-paragraph (2) applies in respect of any default on the part of a registered social landlord, the High Court may, on the application of the Relevant Authority, make such order as the court thinks fit for requiring the default to be made good.

Any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the registered social landlord or by any of its officers who are responsible for the default.]

Textual Amendments

F135Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F136Words in Sch. 1 para. 19(2)(c) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 22(2)(a)

F137Sch. 1 para. 19(2)(d) repealed (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 22(2)(b), Sch. 16

F138Words in Sch. 1 para. 19(2) substituted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 22(2)(c) (with Sch. 11 para. 22(3))

F139Sch. 1 para. 19(5) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 22(4)

[F140Disclosure of information by auditors etc. to the Relevant AuthorityE+W+S

Textual Amendments

F140 Sch. 1 para. 19A and cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 23

19A(1)A person who is, or has been, an auditor of a registered social landlord does not contravene any duty to which he is subject merely because he gives to the Relevant Authority —E+W+S

(a)information on a matter of which he became aware in his capacity as auditor of the registered social landlord, or

(b)his opinion on such a matter,

if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of the Relevant Authority.

(2)Sub-paragraph (1) applies whether or not the person is responding to a request from the Relevant Authority.

(3)This paragraph applies to a person who is, or has been, a reporting accountant as it applies to a person who is, or has been, an auditor.

(4)A “reporting accountant” means a person appointed as mentioned in paragraph 16(7)(b).]]

[F141PART 3AE+WINSPECTION

Textual Amendments

F141Sch. 1 Pt. 3A and Sch. 1 para. 19B inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 43, 90(2); S.I. 2011/2475, arts. 1(2), 2(g)

Overview and applicationE+W

19B(1)This Part provides for the inspection of a registered social landlord's affairs.

(2)But this Part does not apply in relation to affairs relating only to the provision of housing in England.]

InspectionE+W

[F14219C(1)The Welsh Ministers—

(a)may inspect a registered social landlord's affairs, or

(b)may arrange for another person to do so.

(2)An inspection may be general or specific.

(3)If the Welsh Ministers arrange for a person to carry out an inspection, they may direct that person to discontinue it.

(4)If the Welsh Ministers arrange for a person to carry out an inspection, the arrangements may include (among other things) provision about payments.]

Textual Amendments

Inspection: supplementalE+W

[F14319D(1)The person carrying out the inspection must produce a written report.

(2)The Welsh Ministers—

(a)must give the registered social landlord a copy of the report, and

(b)may publish the report and related information.

(3)If the Welsh Ministers have arranged for a person to carry out the inspection, that person may publish the report and related information (whether or not the Welsh Ministers have done so).

(4)If a registered social landlord is inspected, the Welsh Ministers may charge a fee.

(5)A registered social landlord must pay any fee charged to—

(a)the person with whom the Welsh Ministers have made an arrangement to carry out an inspection (if any), or

(b)the Welsh Ministers.

(6)The Welsh Ministers may direct a registered social landlord to pay the fee to one of those persons.

(7)If a fee is paid to a person other than the Welsh Ministers, that person must notify the Welsh Ministers about the payment.]

Textual Amendments

Inspector's powers to require provision of documents or informationE+W

[F14419E(1)An inspector may by notice require a person to provide specified documents or information.

(2)A requirement may specify—

(a)the form and manner in which a document or information is to be provided (which may include the provision of a legible copy of information stored electronically);

(b)when and where it is to be provided.

(3)The inspector may copy or record documents or information provided.

(4)Failure to comply with a requirement without reasonable excuse is an offence.

(5)Intentionally altering, suppressing or destroying a document or information to which a requirement relates is an offence.

(6)If a person fails to comply with a requirement the High Court may, on an application by the inspector, make an order for the purpose of remedying the failure.

(7)In this paragraph “inspector” means—

(a)the Welsh Ministers, or

(b)a person authorised in writing by the Welsh Ministers to exercise the powers under this paragraph for the purpose of an inspection under paragraph 19C.]

Textual Amendments

Inspector's powers to require provision of documents or information: supplementalE+W

[F14519F(1)A requirement does not require a person to disclose anything which the person would be entitled to refuse to disclose on grounds of legal professional privilege in proceedings in the High Court.

(2)A requirement does not require a banker to breach a duty of confidentiality owed to a person who is not—

(a)the registered social landlord to whose affairs or activities the document or information relates,

(b)a subsidiary of that landlord, or

(c)an associate of that landlord.

(3)A person guilty of an offence under paragraph 19E(4) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4)A person guilty of an offence under paragraph 19E(5) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to—

(i)imprisonment for a term not exceeding two years,

(ii)a fine, or

(iii)both.

(5)Proceedings for an offence under paragraph 19E(4) or (5) may be brought only by or with the consent of—

(a)the Welsh Ministers, or

(b)the Director of Public Prosecutions.]

Textual Amendments

Inspector's powers of entry and inspectionE+W

[F14619G(1)An inspector may at any reasonable time—

(a)enter premises occupied by the registered social landlord which is being inspected, and

(b)inspect, copy or take away documents found there.

(2)But the inspector may not enter residential accommodation (whether the residential accommodation is the whole of, or only part of, premises occupied by the registered social landlord).

(3)The reference to documents found on the premises includes (but is not limited to)—

(a)documents stored on computers or electronic storage devices on the premises, and

(b)documents stored elsewhere which can be accessed by computers on the premises.

(4)The power to inspect documents includes (but is not limited to) the power to inspect any computer or electronic storage device on which they have been created or stored.

(5)An inspector may require any person on the premises to provide such facilities or assistance as the inspector reasonably requests.

(6)For the purposes of sub-paragraphs (3) and (4) an inspector may require any person having charge of a computer to provide any assistance that the inspector reasonably requests.

(7)It is an offence for a person without reasonable excuse to obstruct an inspector exercising the powers conferred by sub-paragraphs (1) to (6).

(8)A person guilty of an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(9)Proceedings for an offence may be brought only by or with the consent of—

(a)the Welsh Ministers, or

(b)the Director of Public Prosecutions.

(10)In this paragraph—

Textual Amendments

Part IVE+W Inquiry into affairs of registered social landlords

InquiryE+W

20(1)The [F147Relevant Authority] may direct an inquiry into the affairs of a registered social landlord if it appears to the [F147Relevant Authority] that there may have been misconduct or mismanagement.E+W

F148...

(2)Any such inquiry shall be conducted by one or more persons appointed by the [F147Relevant Authority].

F149(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)If the [F147Relevant Authority] so directs, or if during the course of the inquiry the person or persons conducting the inquiry consider it necessary, the inquiry shall extend to the affairs of any other body which at any material time is or was a subsidiary or associate of the registered social landlord.

[F150(4A)The person or persons conducting the inquiry may determine the procedure to be followed in connection with the inquiry.]

(5)The person or persons conducting the inquiry may, if they think fit during the course of the inquiry, make one or more interim reports on such matters as appear to them to be appropriate.

(6)On completion of the inquiry the person or persons conducting the inquiry shall make a final report on such matters as the [F147Relevant Authority] may specify.

(7)An interim or final report shall be in such form as the [F147Relevant Authority] may specify. [F151 , and the Relevant Authority may arrange for the whole or part of an interim or final report to be published in such manner as it considers appropriate. ]

[F152(8)A local authority may, if they think fit, contribute to the expenses of the Relevant Authority in connection with any inquiry under this paragraph.]

Textual Amendments

F147Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F148Words in Sch. 1 para. 20(1) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 18; S.I. 2011/2475, arts. 1(2), 2(v)

F150Sch. 1 para. 20(4A) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(2)

F151Words in Sch. 1 para. 20(7) added (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(3)

F152Sch. 1 para. 20(8) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(4)

Modifications etc. (not altering text)

[F153EvidenceE+W

Textual Amendments

F153 Sch. 1 para. 20A and cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 25

20A(1)For the purposes of an inquiry the person or persons conducting it may serve a notice on an appropriate person directing him to attend at a specified time and place and do either or both of the following, namely—E+W

(a)give evidence;

(b)produce any specified documents, or documents of a specified description, which are in his custody or under his control and relate to any matter relevant to the inquiry.

(2)The person or persons conducting such an inquiry—

(a)may take evidence on oath and for that purpose administer oaths, or

(b)instead of administering an oath, require the person examined to make and subscribe a declaration of the truth of the matters about which he is examined.

(3)In this paragraph—

(4)A person may not be required under this paragraph to disclose anything that, by virtue of section 30(4), he could not be required to disclose under section 30.

(5)Section 31 (enforcement of notice to provide information, &c) applies in relation to a notice given under this paragraph by the person or persons conducting an inquiry as it applies in relation to a notice given under section 30 by the Relevant Authority, but subject to sub-paragraph (6).

(6)A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (5) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

(7)Any person who, in purported compliance with a notice given under this paragraph by the person or persons conducting an inquiry, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (6).

(8)Proceedings for an offence under sub-paragraph (7) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.]

Power of appointed person to obtain informationE+W

21(1)A person appointed by the [F154Relevant Authority] under paragraph 20 to conduct an inquiry (or, if more than one person is so appointed, each of those persons) has, for the purposes of the inquiry, the same powers as are conferred on the [F154Relevant Authority] by section 30 (general power to obtain information).E+W

(2)Where by virtue of a notice under that section given by an appointed person any documents are produced to any person, the person to whom they are produced may take copies of or make extracts from them.

(3)Section 31 (enforcement of notice to provide information, &c.) applies in relation to a notice given under this paragraph by an appointed person as it applies in relation to a notice given under section 30 by the [F154Relevant Authority]. [F155 , but subject to sub-paragraph (4). ]

[F156(4)A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (3) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

(5)Any person who, in purported compliance with a notice given under this paragraph by an appointed person, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (4).

(6)Proceedings for an offence under sub-paragraph (5) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.]

Textual Amendments

F154Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F155Words in Sch. 1 para. 21(3) added (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 26(2) (with Sch. 11 para. 26(4))

F156Sch. 1 para. 21(4)-(6) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 26(3) (with Sch. 11 para. 26(4))

Extraordinary audit for purposes of inquiryE+W

22(1)For the purposes of an inquiry under paragraph 20 the [F157Relevant Authority] may require the accounts and balance sheet of the registered social landlord concerned, or such of them as the [F157Relevant Authority] may specify, to be audited by a qualified auditor appointed by the [F157Relevant Authority].E+W

(2)A person is a qualified auditor for this purpose if he would be eligible for appointment as auditor of the ordinary accounts of the registered social landlord.

(3)On completion of the audit the appointed auditor shall make a report to the [F157Relevant Authority] on such matters and in such form as the [F157Relevant Authority] may specify.

(4)The expenses of the audit, including the remuneration of the auditor, shall be paid by the [F157Relevant Authority].

(5)An audit under this paragraph is additional to, and does not affect, any audit made or to be made under any other enactment.

Textual Amendments

F157Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Powers exercisable on interim basisE+W

23(1)The [F158Relevant Authority] may make an order under this paragraph—E+W

(a)where an inquiry has been directed under paragraph 20 and the [F158Relevant Authority] has reasonable grounds to believe—

(i)that there has been misconduct or mismanagement in the affairs of the registered social landlord, and

(ii)that immediate action is needed to protect the interests of the tenants of the registered social landlord or to protect the assets of the landlord; or

(b)where an interim report has been made under paragraph 20(5) as a result of which the [F158Relevant Authority] is satisfied that there has been misconduct or mismanagement in the affairs of a registered social landlord.

(2)The orders that may be made under this paragraph are—

(a)an order suspending any officer, employee or agent of the registered social landlord who appears to the [F158Relevant Authority] to have been responsible for or privy to the misconduct or mismanagement or by his conduct to have contributed to or facilitated it;

(b)an order directing any bank or other person who holds money or securities on behalf of the registered social landlord not to part with the money or securities without the approval of the [F158Relevant Authority];

(c)an order restricting the transactions which may be entered into, or the nature or amount of the payments which may be made, by the registered social landlord without the approval of the [F158Relevant Authority].

[F159(2A)Before making an order under sub-paragraph (2)(b) or (c) the Welsh Ministers must take all reasonable steps to give notice to the registered social landlord and, in the case of an order under sub-paragraph (2)(b), to the person to whom the order is directed.]

(3)An order under this paragraph, if not previously revoked by the [F158Relevant Authority], shall cease to have effect six months after the making of the final report under paragraph 20(6) unless the [F158Relevant Authority] renews it, which it may do for a further period of up to six months.

(4)A person suspended by an order under sub-paragraph (2)(a) may appeal against the order to the High Court.

(5)Where a person is suspended by such an order, the [F158Relevant Authority] may give directions with respect to the performance of his functions and otherwise as to matters arising from his suspension.

The [F158Relevant Authority] may, in particular, appoint a named person to perform his functions.

(6)A person who contravenes an order under sub-paragraph (2)(b) commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale or imprisonment for a term not exceeding three months, or both.

Proceedings for such an offence may be brought only by or with the consent of the [F158Relevant Authority] or the Director of Public Prosecutions.

Textual Amendments

F158Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F159Sch. 1 para. 23(2A) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 79, 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

Powers exercisable as a result of final report or auditE+W

24(1)Where the [F160Relevant Authority] is satisfied, as the result of an inquiry under paragraph 20 or an audit under paragraph 22, that there has been misconduct or mismanagement in the affairs of a registered social landlord, it may make an order under this paragraph.E+W

(2)The orders that may be made under this paragraph are—

(a)an order removing any officer, employee or agent of the registered social landlord who appears to the [F160Relevant Authority] to have been responsible for or privy to the misconduct or mismanagement or by his conduct to have contributed to or facilitated it;

(b)an order suspending any such person for up to six months, pending determination whether he should be removed;

(c)an order directing any bank or other person who holds money or securities on behalf of the registered social landlord not to part with the money or securities without the approval of the [F160Relevant Authority];

(d)an order restricting the transactions which may be entered into, or the nature or amount of the payments which may be made, by the registered social landlord without the approval of the [F160Relevant Authority].

(3)Before making an order under sub-paragraph (2)(a) the [F160Relevant Authority] 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 registered social landlord concerned.

Notice under this sub-paragraph may be given by post, and if so given to the person whom the [F160Relevant Authority] intends to remove may be addressed to his last known address in the United Kingdom.

[F161(3A)Before making an order under sub-paragraph (2)(c) or (d) the Welsh Ministers must take all reasonable steps to give notice to the registered social landlord and, in the case of an order under sub-paragraph (2)(c), to the person to whom the order is directed.]

(4)A person who is ordered to be removed under sub-paragraph (2)(a) or suspended under sub-paragraph (2)(b) may appeal against the order to the High Court.

(5)Where a person is suspended under sub-paragraph (2)(b), the [F160Relevant Authority] may give directions with respect to the performance of his functions and otherwise as to matters arising from the suspension.

The [F160Relevant Authority] may, in particular, appoint a named person to perform his functions.

(6)A person who contravenes an order under sub-paragraph (2)(c) commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale or imprisonment for a term not exceeding three months, or both.

Proceedings for such an offence may be brought only by or with the consent of the [F160Relevant Authority] or the Director of Public Prosecutions.

[F162(7)An order under sub-paragraph (2)(c) or (d) has effect until revoked by the Welsh Ministers.]

Textual Amendments

F160Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Disqualification as officer of registered social landlord.E+W

25[F163(1)A person is disqualified from acting as an officer of a registered social landlord if the person has been removed under—E+W

(a)paragraph 24(2)(a) (removal for misconduct or mismanagement), or

(b)section 260 of the Housing and Regeneration Act 2008, section 30(1)(a) of the Housing Associations Act 1985 or section 20(1)(a) of the Housing Act 1974 (other similar provisions).]

(2)The [F164Relevant Authority] may, on the application of any such person, waive his disqualification either generally or in relation to a particular registered social landlord or particular class of registered social landlord.

(3)Any waiver shall be notified in writing to the person concerned.

(4)For the purposes of this paragraph the [F164Relevant Authority] shall keep, in such manner as it thinks fit, a register of all persons who have been removed from office by the [F164Relevant Authority] under the provisions mentioned in sub-paragraph (1).

[F165(4A)The register must show details of any waivers.]

(5)The register shall be available for public inspection at all reasonable times.

Textual Amendments

F164Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Persons acting as officer while disqualified.E+W

26(1)A person who acts as an officer of a registered social landlord while he is disqualified under paragraph 25(1) commits an offence.E+W

A person guilty of such an offence is liable—

(a)on summary conviction, to imprisonment for a term not exceeding [F16612 months] or to a fine not exceeding the statutory maximum, or both;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

[F167(1A)In relation to an offence committed before the commencement of section 282 of the Criminal Justice Act 2003 (short sentences) the reference in sub-paragraph (1)(a) to 12 months has effect as if it were a reference to 6 months.]

(2)Proceedings for an offence under sub-paragraph (1) may be brought only by or with the consent of the [F168Relevant Authority] or the Director of Public Prosecutions.

(3)Acts done as an officer of a registered social landlord by a person who is disqualified under paragraph 25(1) are not invalid by reason only of that disqualification.

(4)Where the [F168Relevant Authority] is satisfied—

(a)that a person has acted as an officer of a registered social landlord while disqualified under paragraph 25(1), and

(b)that while so acting he has received from the registered social landlord any payments or benefits in connection with his so acting,

it may by order direct him to repay to the registered social landlord the whole or part of any such sums or, as the case may be, to pay to it the whole or part of the monetary value (as determined by it) of any such benefit.

[F169(5)If a person fails to comply with an order directing repayment, the registered social landlord or the Welsh Ministers (as the case may be) may recover the sum or specified amount as a debt.]

Textual Amendments

F166Words in Sch. 1 para. 26(1)(a) substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 82(2), 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

F168Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Power to direct transfer of landE+W

27(1)Where as a result of an inquiry under paragraph 20 or an audit under paragraph 22 the [F170Relevant Authority] is satisfied as regards a registered social landlord—E+W

(a)that there has been misconduct or mismanagement in its administration, or

(b)that the management of its land would be improved if its land were transferred in accordance with the provisions of this paragraph,

the [F170Relevant Authority] may, F171. . . direct the registered social landlord to make such a transfer . F172...

(2)Where the registered social landlord concerned is a charity, the [F170Relevant Authority] may only direct a transfer to be made to another registered social landlord—

(a)which is also a charity, and

(b)the objects of which appear to the [F170Relevant Authority] to be, as nearly as practicable, akin to those of the registered social landlord concerned.

(3)In any other case the [F170Relevant Authority] may direct a transfer to be made to the [F170Relevant Authority] or to another registered social landlord.

(4)The transfer shall be on such terms as the [F170Relevant Authority] may direct on the basis of principles determined by it.

F173...

(5)The price shall not be less than the amount certified by the district valuer to be the amount the property would command if sold by a willing seller to another registered social landlord.

(6)The terms shall include provision as to the payment of debts and liabilities (including debts and liabilities secured on the land).

Textual Amendments

F170Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F171Words in Sch. 1 para. 27(1) repealed (1.11.1998) by 1998 c. 38, ss. 140, 152, Sch. 16 para. 96(6)(a), Sch. 18 Pt.VI (with ss. 137(1), 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Modifications etc. (not altering text)

Commencement Information

I4Sch. 1 para. 27 wholly in force at 1.10.1996; Sch. 1 para. 27 not in force at Royal Assent see s. 232(3); Sch. 1 para. 27(4) in force for certain purposes at 1.8.1996 by S.I. 1996/2048, art. 3; Sch. 1 para. 27 in force at 1.10.1996 to the extent that it is not already in force, by S.I. 1996/2402, art. 3 (subject to the transitional provisions and savings in the Sch. of that S.I.)

Availability of powers in relation to registered charities.E+W

28(1)The [F174Relevant Authority] may exercise its powers under paragraphs 20 to 26 in relation to a registered charity only if the charity has [F175 received public assistance]F176...E+W

F177(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In relation to a registered charity paragraphs 20 to 26 have effect with the following adaptations—

(a)references to its affairs are confined to its housing activities and such other activities (if any) as are incidental to or connected with its housing activities;

(b)references to its accounts do not include revenue accounts which do not relate to its housing activities, except so far as such accounts are necessary for the auditing of revenue accounts which do so relate or of the balance sheet;

(c)a person is a qualified auditor for the purpose of paragraph 22 (extraordinary audit) only if he is an auditor qualified for the purposes of paragraph 18 (accounting and audit requirements for charities).

(4)The [F174Relevant Authority] shall notify the [F178Charity Commission] upon the exercise in relation to a registered charity of its powers under—

(a)paragraph 20(1) (inquiry into affairs of registered social landlord),

(b)paragraph 23(2)(a) (interim suspension of person in connection with misconduct or mismanagement), or

(c)paragraph 24(2)(a) or (b) (removal of person in connection with misconduct or mismanagement or suspension with a view to removal).

Textual Amendments

F174Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F176Words in Sch. 1 para. 28(1) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 20(a)(ii); S.I. 2011/2475, arts. 1(2), 2(v)

F177Sch. 1 para. 28(2) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 20(b); S.I. 2011/2475, arts. 1(2), 2(v)

F178Words in Sch. 1 para. 28(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 192(5); S.I. 2007/309, art. 2, Sch.

29E+WThe [F179Relevant Authority] may not exercise its powers under paragraph 27 in relation to a registered charity.

Textual Amendments

F179Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.