The Health and Social Care (Financial Assistance) Regulations 2009

Conditions concerning distribution of assets on winding up

8.—(1) The condition specified in this regulation is that the constitution of the body must, where appropriate, contain provisions relating to the distribution of assets which take effect when that body is dissolved or wound up, as specified in paragraph (2).

(2) The provisions referred to in paragraph (1) are ones which—

(a) require that the residual assets of the body be distributed to those members of the body (if any) who are entitled to share in any distribution of assets on the dissolution or winding up of that body according to those members’ rights and interests in that body;

(b) in the case of a company not limited by guarantee and registered as a charity in England and Wales, provide that no member shall receive an amount which exceeds the paid up value of the shares which the member holds in the company; and

(c) designate another qualifying body (for the purposes of sections 149 to section 156 of the 2008 Act) to which any remaining residual assets of the body will be distributed after any distribution to members of the body.