xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

SCHEDULES

SCHEDULE 7E+WConstitution of public benefit corporations

DirectorsE+W

15(1)A public benefit corporation has a board of directors.E+W

(2)The constitution must provide for all the powers of the corporation to be exercisable by the board of directors on its behalf.

(3)But the constitution may provide for any of those powers to be delegated to a committee of directors or to an executive director.

Modifications etc. (not altering text)

C1Sch. 7 para. 15(3) modified by 1983 c. 20, s. 142B (as inserted (24.7.2007) by Mental Health Act 2007 (c. 12), ss. 45(3), 56(1); S.I. 2007/2156, art. 2)

16(1)The board consists of—E+W

(a)executive directors, one of whom is the chief executive (and accounting officer) and another the finance director,

(b)non-executive directors, one of whom is the chairman.

(2)One of the executive directors must be a registered medical practitioner or a registered dentist (within the meaning of the Dentists Act 1984 (c 24)); and another must be a registered nurse or a registered midwife.

(3)A person may not be appointed as an executive director if he is within paragraph 8(1).

(4)A person may be appointed as a non-executive director only if—

(a)he is a member of a public constituency or the patients' constituency, or

(b)where any of the corporation's hospitals includes a medical or dental school provided by a university, he exercises functions for the purposes of that university,

and he is not within paragraph 8(1).

17(1)It is for [F1the council] of governors at a general meeting to appoint or remove the chairman and the other non-executive directors.E+W

(2)Removal of a non-executive director under sub-paragraph (1) requires the approval of three-quarters of the members of [F1the council] .

(3)It is for the non-executive directors to appoint or remove the chief executive.

(4)It is for a committee consisting of the chairman, the chief executive and the other non-executive directors to appoint or remove the executive directors.

(5)The appointment of a chief executive requires the approval of [F1the council] of governors.

Textual Amendments

F1Words in Sch. 7 para. 17 substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 151(9)(b), 306(4); S.I. 2012/1831, art. 2(2)

18(1)It is for [F2the council] of governors at a general meeting to decide the remuneration and allowances, and the other terms and conditions of office, of the non-executive directors.E+W

(2)The corporation must establish a committee of non-executive directors to decide the remuneration and allowances, and the other terms and conditions of office, of the executive directors; but the constitution may make provision for those matters to be decided pending the establishment of such a committee.

Textual Amendments

F2Words in Sch. 7 para. 18 substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 151(9)(b), 306(4); S.I. 2012/1831, art. 2(2)

[F318AE+WThe general duty of the board of directors, and of each director individually, is to act with a view to promoting the success of the corporation so as to maximise the benefits for the members of the corporation as a whole and for the public.]

Textual Amendments

[F418B(1)The duties that a director of a public benefit corporation has by virtue of being a director include in particular—E+W

(a)a duty to avoid a situation in which the director has (or can have) a direct or indirect interest that conflicts (or possibly may conflict) with the interests of the corporation;

(b)a duty not to accept a benefit from a third party by reason of being a director or doing (or not doing) anything in that capacity.

(2)The duty referred to in sub-paragraph (1)(a) is not infringed if—

(a)the situation cannot reasonably be regarded as likely to give rise to a conflict of interest, or

(b)the matter has been authorised in accordance with the constitution.

(3)The duty referred to in sub-paragraph (1)(b) is not infringed if acceptance of the benefit cannot reasonably be regarded as likely to give rise to a conflict of interest.

(4)In sub-paragraph (1)(b), “third party” means a person other than—

(a)the corporation, or

(b)a person acting on its behalf.]

Textual Amendments

[F518C(1)If a director of a public benefit corporation has in any way a direct or indirect interest in a proposed transaction or arrangement with the corporation, the director must declare the nature and extent of that interest to the other directors.E+W

(2)If a declaration under this paragraph proves to be, or becomes, inaccurate or incomplete, a further declaration must be made.

(3)Any declaration required by this paragraph must be made before the corporation enters into the transaction or arrangement.

(4)This paragraph does not require a declaration of an interest of which the director is not aware or where the director is not aware of the transaction or arrangement in question.

(5)A director need not declare an interest—

(a)if it cannot reasonably be regarded as likely to give rise to a conflict of interest;

(b)if, or to the extent that, the directors are already aware of it;

(c)if, or to the extent that, it concerns terms of the director's appointment that have been or are to be considered—

(i)by a meeting of the board of directors, or

(ii)by a committee of the directors appointed for the purpose under the constitution.]

Textual Amendments

[F618D(1)Before holding a meeting, the board of directors must send a copy of the agenda of the meeting to the council of governors.E+W

(2)As soon as practicable after holding a meeting, the board of directors must send a copy of the minutes of the meeting to the council of governors.]

Textual Amendments

[F718E(1)The constitution must provide for meetings of the board of directors to be open to members of the public.E+W

(2)But the constitution may provide for members of the public to be excluded from a meeting for special reasons.]

Textual Amendments