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(1)Section 19 of FHEA 1992 (supplementary powers of a further education corporation) is amended as set out in subsections (2) to (6).
(2)In subsection (4), for paragraph (bb), substitute—
“(bb)form, participate in forming or invest in a company,
(bc)form, participate in forming or otherwise become a member of a charitable incorporated organisation (within the meaning of section 69A of the Charities Act 1993),”.
(3)For subsection (4A) substitute—
“(4A)The power conferred by subsection (4)(bb) above may not be exercised for the purpose of—
(a)conducting an educational institution, or
(b)investing in a company conducting an educational institution.
(4AA)The power conferred by subsection (4)(bc) above may not be exercised for the purpose of—
(a)conducting an educational institution, or
(b)becoming a member of a charitable incorporated organisation conducting an educational institution.
(4AB)But a restriction on the exercise of a power imposed by subsection (4A) or (4AA) above shall not apply to the extent that the appropriate authority consents to the exercise of the power in a way which does not comply with the restriction.
(4AC)In subsection (4AB) above “the appropriate authority” means—
(a)in relation to a further education corporation in England, the Learning and Skills Council for England;
(b)in relation to a further education corporation in Wales, the Welsh Ministers.”
(4)In subsection (4B), for the words from the beginning to “be exercised” substitute “Neither the power conferred by subsection (4)(bb) above nor the power conferred by subsection (4)(bc) above may be exercised”.
(5)In subsection (4C), after “subsection (4)(bb) above” insert “or the power conferred by subsection (4)(bc) above”.
(6)At the end, insert—
“(8)A reference in this section to investing in a company includes a reference to becoming a member of the company and to investing in it by the acquisition of any assets, securities or rights or otherwise.”
(7)In relation to the period beginning on 1st April 2001 and ending immediately before the coming into force of this section, the power conferred by section 19(4)(bb) of FHEA 1992 is to be taken to have included power to form, participate in forming or become a member of a company limited by guarantee.
After section 49 of FHEA 1992 insert—
(1)In exercising their functions the governing body of an institution within the further education sector must have regard to any guidance given from time to time by the appropriate authority about consultation with—
(a)persons who are or are likely to become students of the institution, or
(b)employers,
in connection with the taking of decisions affecting them.
(2)Any guidance under this section about consultation with persons falling within paragraph (a) of subsection (1) must provide for the views of such a person to be considered in the light of his age and understanding.
(3)In this section “the appropriate authority” means—
(a)in relation to an institution in England, the Secretary of State, and
(b)in relation to an institution in Wales, the Welsh Ministers.”
(1)Section 137 of the Education Act 2002 (c. 32) (power of Secretary of State or Welsh Ministers to make regulations requiring principals of further education institutions to have specified qualifications) is amended as follows.
(2)After subsection (2) insert—
“(2A)Regulations under subsection (1) may limit the period of time during which a person may serve as the principal of an institution in reliance on subsection (2).”
(3)In subsection (3) (regulations made for England or Wales not to apply to persons already appointed to institutions)—
(a)for “under subsection (1)” substitute “made under subsection (1) by the Welsh Ministers in relation to Wales”, and
(b)after “an institution” insert “in England or Wales”.