Part 2Name, rules, powers etc
Power to restrict use of assets
29Power to restrict use of assets of a community benefit society
1
The Treasury may by regulations make provision for enabling any community benefit society, or any community benefit society of a prescribed kind, to ensure that—
a
assets of the society of a prescribed kind,
b
assets of the society specified by it in accordance with the regulations, or
c
all of the society's assets,
cannot be used or dealt with except in a case mentioned in subsection (2).
2
The cases are—
a
where the use or dealing is, directly or indirectly—
i
for a purpose that is for the benefit of the community and is of a prescribed kind, or
ii
if no kinds of purpose are prescribed under this paragraph, for any purpose that is for the benefit of the community, or
b
where the circumstances are such as may be prescribed.
3
Where under the regulations a society has ensured as mentioned in subsection (1) as respects any of its assets, the assets concerned are “dedicated assets” for the purposes of this section.
4
Regulations under this section may, in particular—
a
provide for the procedure by which a society may ensure as mentioned in subsection (1);
b
provide for such of a society's rules as are of a prescribed kind to be unalterable, or for them to be alterable only in prescribed circumstances or in circumstances specified in rules of a prescribed kind;
c
provide that, in any circumstances prescribed under subsection (2)(b), dedicated assets must be dealt with in a prescribed way;
d
make provision for ensuring that any society, company or other person to whom any dedicated assets are transferred in prescribed circumstances cannot use or deal with those assets except in a case mentioned in subsection (2);
e
provide for members of a society who lose property rights as a result of the society's ensuring as mentioned in subsection (1) to be compensated for that loss (whether by payment of a prescribed amount or of an amount determined in a prescribed way or otherwise), subject to such exceptions as may be prescribed;
f
provide for the enforcement of provisions designed to ensure as mentioned in subsection (1);
g
make provision for the carrying out of investigations by persons appointed by a prescribed person;
h
confer power on a prescribed person to require persons of a prescribed description to provide the prescribed person with information in order to enable or assist that person to perform any of the person's functions under the regulations;
i
provide for restrictions on the use and disclosure of information obtained by any person in the performance of any function under the regulations.
5
Regulations under this section may—
a
impose criminal liability;
b
confer functions on a prescribed person;
c
confer jurisdiction on any court;
d
authorise a prescribed person to make rules, binding on persons of a prescribed description, for the purpose of enabling or assisting the prescribed person to perform any of the person's functions under the regulations;
e
make provision as to the making, publication and enforcement of such rules;
f
provide for a prescribed person to charge fees sufficient to meet the costs of performing any of the person's functions under the regulations;
g
modify, exclude or apply (with or without modifications) any enactment or rule of law;
h
contain such incidental, consequential and supplementary provision as the Treasury consider appropriate;
i
make different provision for different cases.
6
Regulations under this section may not create any new criminal offence punishable with imprisonment for more than 7 years.
7
In this section—
“community benefit society” includes a pre-commencement society that meets the condition in section 2(2)(a)(ii);
“prescribed” means prescribed by regulations under this section.