Part 2 U.K.Further education bodies: insolvency etc

CHAPTER 4E+WFurther education bodies: special administration

Financial support for bodies in education administrationE+W

28Indemnities where education administration order is madeE+W

(1)If an education administration order has been made in relation to a further education body, the appropriate national authority may agree to indemnify persons in respect of one or both of the following—

(a)liabilities incurred in connection with the carrying out of functions by the education administrator, and

(b)loss or damage sustained in that connection.

(2)The agreement may be made in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.

(3)As soon as possible after agreeing to indemnify persons under this section, the appropriate national authority must lay a statement of the agreement before Parliament or the National Assembly for Wales (as appropriate).

(4)For repayment of sums paid by the appropriate national authority in consequence of an indemnity agreed to under this section, see section 29.

(5)The power of the appropriate national authority to agree to indemnify persons—

(a)is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but

(b)includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.

(6)The following are relevant persons for the purposes of this section—

(a)the education administrator;

(b)an employee of the education administrator;

(c)a partner or employee of a firm of which the education administrator is a partner or employee;

(d)a partner of a firm of which the education administrator was an employee or partner at a time when the order was in force;

(e)a body corporate which is the employer of the education administrator;

(f)an officer, employee or member of such a body corporate;

(g)a Scottish firm which is the employer of the education administrator or of which the education administrator is a partner.

(7)For the purposes of subsection (6)—

(a)references to the education administrator are to be read, where two or more persons are appointed as the education administrator, as references to any one or more of them, and

(b)references to a firm of which a person was a partner or employee at a particular time include a firm which holds itself out to be the successor of a firm of which the person was a partner or employee at that time.