SCHEDULE 1Delegated functions under Part 10 of the NHS Act
Interpretation
1.
In this Schedule—
“authorised officer” means officers authorised under paragraph 4(1);
“the delegated functions” means the functions delegated to the Authority under paragraph 2(1);
“designated officer” means an officer designated pursuant to paragraph 3(1) and, in respect of any given authorisation granted to or being considered in relation to a senior officer or authorised officer, “the designated officer concerned” means the designated officer who is considering or who granted that authorisation.
Delegation of functions
2.
(1)
(2)
The Secretary of State further directs that the delegated functions are to be exercised on behalf of the Authority by its authorised officers, as provided for in this Schedule.
(3)
For the purposes of section 199(3) of the NHS Act (which provides for the level of seniority of an officer to be specified in directions), an officer is a senior officer if the officer is of a grade within or above Agenda for Change pay band 7.
Designated officers
3.
(1)
The Authority must designate officers to undertake its functions under paragraph 4, and other functions of designated officers under this Schedule.
(2)
A designated officer must be an accredited Counter Fraud Specialist.
(3)
A designated officer discharging functions of the Authority under paragraph 4 must be of a grade above Agenda for Change pay band 8b.
(4)
A designated officer discharging other functions under this Part must be of a grade within or above Agenda for Change pay band 8b.
Authorising senior officers
4.
(1)
The Authority is to authorise such of its senior officers meeting the fitness requirement in paragraph 5 as it may require to act on its behalf in the exercise of the delegated functions.
(2)
The Authority may revoke such an authorisation if it is satisfied having regard to all relevant circumstances that it is appropriate to do so.
Fitness requirements for authorised officers
5.
A senior officer meets the fitness requirement if the officer is an officer—
(a)
whom the designated officer concerned considers has the knowledge, skills and experience necessary to exercise the delegated functions; and
(b)
who is an accredited Counter Fraud Specialist.
Records of authorised officers
6.
(1)
The Authority must establish and maintain a record in respect of all authorised officers.
(2)
The record referred to in sub-paragraph (1) must include—
(a)
the name of the authorised officer;
(b)
a statement that the authorised officer is an accredited Counter Fraud Specialist;
(c)
the name of the designated officer concerned;
(d)
the date that the authorisation under paragraph 4 was granted; and
(e)
where appropriate, the date on which the authorisation was revoked.
Statement of authority
7.
(1)
The Authority must issue an authorised officer with a written statement providing evidence of that officer’s authority to act in the exercise of the delegated functions.
(2)
The statement issued under sub-paragraph (1) must include—
(a)
the name and business address of the authorised officer;
(b)
a statement that the officer is authorised to act in the exercise of the delegated functions which must include the date on which the officer was authorised to exercise the delegated functions;
(c)
the signature of the designated officer concerned;
(d)
the name and logo of the Authority; and
(e)
a reference to the officer’s authorisation being granted by virtue of Part 10 of the NHS Act.
Production of statement
8.
An authorised officer exercising the delegated functions must produce the statement issued to that officer in accordance with paragraph 7, or a copy of it—
(a)
at the time of serving a notice under section 197(2) of the NHS Act (notice requiring the production of documents); or
(b)
when requiring a person under section 198(6) of the NHS Act (statement required upon failure to produce documents) to state, to the best of that person’s knowledge and belief, where documents are.
Requirement for specific authorisations in relation to personal records
9.
(1)
(2)
A specific authorisation must be applied for in relation to each personal record or group of personal records sought in any one investigation.
(3)
A specific authorisation given under sub-paragraph (1) may apply only to the personal record or group of personal records in respect of which the application for that authorisation was made.
(4)
An authorised officer must comply with any conditions imposed by a specific authorisation in relation to personal records.
Procedure for specific authorisations
10.
(1)
An authorised officer seeking a specific authorisation in relation to personal records must complete a form provided to that authorised officer for that purpose by a designated officer.
(2)
A designated officer must consider the application having regard to all relevant matters and in particular—
(a)
the description of the documents sought;
(b)
the reasons for the application;
(c)
whether or not each document sought is necessary for the purposes of the exercise of the delegated functions; and
(d)
the description of the proposed arrangements for the safeguarding of the documents whilst in the possession or under the control of the Authority.
Records of specific authorisations in relation to personal records
11.
The Authority must establish and maintain records of all applications for specific authorisations in relation to personal records, including details of whether or not the specific authorisation was granted.
Production of evidence of specific authorisation in relation to personal records
12.
Where an authorised officer has a specific authorisation to act in the exercise of the delegated functions in relation to personal records, that authorised officer must, in addition to producing the statement issued to that authorised officer in accordance with paragraph 7, or a copy of it, produce evidence of that specific authorisation—
(a)
at the time of serving a notice under section 197(2) of the NHS Act (notice requiring production of documents); or
(b)
when requiring a person under section 198(6) of the NHS Act (statement required upon failure to produce documents) to state, to the best of that person’s knowledge and belief, where documents are.
Content of notices
13.
(1)
A notice to be served under section 197 of the NHS Act by the Authority must in addition to meeting the requirements of section 197(4) to (6) and (9) of the NHS Act, include—
(a)
the name and address of the NHS body, health service provider, NHS contractor, public health service contractor, or statutory health body (as the case may be), whom the Authority has reasonable grounds to suspect has possession or control of the documents sought;
(b)
the job title and, if known, the name of the person who the Authority believes is accountable for the documents;
(c)
a reference to the notice’s being served pursuant to Part 10 of the NHS Act;
(d)
details of the arrangements for the production of the documents including the place at which the documents are to be produced;
(e)
notification of the penalties for failing to comply with a notice;
(f)
the name, business address and signature of the authorised officer serving the notice; and
(g)
the name and the logo of the Authority.
(2)
SCHEDULE 2Appointments, tenure, and conduct of business by the Authority
PART 1Appointment and tenure of office of chairperson and non-officer members, and provision about interim arrangements
Appointment and tenure of chairperson and non-officer members
1.
(1)
The chairperson and members of the Authority who are not officers of the Authority (in this Schedule, “non-officer members”) are to be appointed by the Secretary of State.
(2)
Subject to sub-paragraph (3) of this paragraph and to paragraph 3, the term of office of the chairperson and non-officer members is to be for such period as the Secretary of State specifies on making the appointment.
(3)
During the transitional period, the Secretary of State may make appointments under sub-paragraph (1) which—
(a)
may be terminated upon written notice by the Secretary of State; and
(b)
in any event terminate at the end of the transitional period if it not previously terminated.
(4)
Subject to paragraph 3, the chairperson and any non-officer member are, on the termination of their respective terms of appointment, to be eligible for re-appointment.
Appointment and tenure of chief executive and other officers, including interim arrangements
2.
(1)
On commencement of this Order, the chairperson must, in consultation with, and with the consent of, the Secretary of State, appoint on such terms as may be approved by the Secretary of State an officer member to act temporarily as chief executive of the Authority during the transitional period and a second officer member to act temporarily as director of finance during the transitional period (“interim appointments”).
(2)
The officer member appointed to act temporarily as chief executive under sub-paragraph (1) must have knowledge of operational aspects of the health service and recent experience of heading a body or division within a body with functions in relation to the prevention, detection and investigation of fraud similar to those to be exercised by the Authority.
(3)
During the transitional period, the chairperson, may, with the consent of the Secretary of State—
(a)
give to one or both officer members appointed under sub-paragraph (1) notice of termination of appointment; and
(b)
in any circumstances where an interim appointment has ended, make such further interim appointment, on such terms as may be approved by the Secretary of State, as the chairperson thinks fit to ensure the proper discharge of the Authority’s functions.
(4)
An interim appointment made under sub-paragraph (1) or (3)(b) must terminate no later than the end of the transitional period, unless, with the consent of the Secretary of State, it is extended temporarily by agreement between the person holding the appointment and the chairperson.
(5)
Except where the chairperson is required or chooses to make an interim appointment under sub-paragraph (1) or (3)(b), the chairperson must appoint, on such terms as may be approved by the Secretary of State, an officer member to act as chief executive of the Authority and a second officer member to act as director of finance of the Authority.
(6)
At any time, the chairperson may appoint, on such terms as may be approved by the Secretary of State, an officer member in addition to the chief executive and director of finance.
(7)
Before taking any of the actions mentioned in sub-paragraphs (1) and (3) to (6), the chairperson must obtain the written agreement of the non-officer members.
(8)
Where for any period the chief executive is suspended from discharging the duties of a chief executive of the Authority—
(a)
the chief executive must also be suspended for that period from performing the functions ordinarily exercised by the chief executive as a member, and
(b)
any person appointed to act in place of the chief executive must also be appointed to perform the functions that the chief executive ordinarily exercised as a member of the Authority for that period.
(9)
The chief executive may appoint further officers who are not members of the Authority, subject, in the case of appointments at Agenda for Change grade 8b or above, to the agreement of the chairperson.
(10)
A person appointed under sub-paragraph (1), (3)(b), (5) or (6) is, on the termination of the terms of that appointment, eligible for re-appointment.
Disqualification of persons for appointment (chairperson and non-officer members)
3.
(1)
Subject to paragraph 4, a person is disqualified for appointment as the chairperson or as a non-officer member if any of the following apply—
(a)
the person holds a position as chairperson, member, officer, governor or director with, or is employed by, or contracted in any capacity to provide services to—
(i)
any health service body; or
(ii)
any person or body which is not a health service body but which provides services under a commissioning contract within the meaning of section 6E of the NHS Act;
(b)
the person has—
(i)
within the previous five years been convicted in the United Kingdom of any criminal offence not mentioned in sub-paragraph (c) or been convicted elsewhere of any offence which, if committed in any part of the United Kingdom would constitute a criminal offence not mentioned in sub-paragraph (c);
(ii)
as a consequence of that conviction, been sentenced to a sentence of imprisonment (whether suspended or not); and
(iii)
neither the conviction has been quashed nor the sentence reduced to a sentence other than a sentence of imprisonment (whether suspended or not) on appeal;
(c)
the person has, on or after attaining the age of 18 years, in respect of acts or omissions occurring on or after the person’s attaining the age of 18 years—
(i)
been convicted in the United Kingdom of any offence or been convicted elsewhere of any offence which, if committed in any part of the United Kingdom would constitute a criminal offence involving fraud, theft or bribery and the conviction has not been quashed on appeal;
(ii)
(iii)
been subject to, or been party to an agreement which was, the subject of a regulatory or judicial finding or decision, other than one which was successfully reviewed or appealed, in respect of matters similar to those mentioned in para (ii) pursuant to the repealed legislation mentioned in sections 1 and 17 of the Competition Act 1998;
(d)
(e)
the person has been dismissed within the previous five years, otherwise than by reason of redundancy, from any paid employment with a health service body or any person or body which is not a health service body but which provides services under a commissioning contract within the meaning of section 6E of the NHS Act;
(f)
the tenure of office of the person as the chairperson, a member, a director or a governor of a health service body has been terminated on the grounds—
(i)
that it was not in the interests of the health service body or of the health service that the person should continue to hold the office;
(ii)
of non-attendance at meetings;
(iii)
of non-disclosure of a pecuniary interest; or
(iv)
of misbehaviour, misconduct or failure to carry out the duties of the post or position held by the person;
(g)
the tenure of office of the person as the chairperson, a member, a director or a governor of any person or body which is not a health service body but which provides services under a commissioning contract within the meaning of section 6E of the NHS Act has been terminated on the grounds of—
(i)
non-disclosure of a pecuniary interest; or
(ii)
misbehaviour, misconduct or failure to carry out the duties of the post or position held by the person;
(h)
(i)
the person has been—
(i)
removed from the office of charity trustee or trustee for a charity by an order made by the Charity Commissioners or the High Court on the grounds of any misconduct or mismanagement in the administration of the charity for which the person was responsible or to which the person was privy, or which was contributed to or facilitated by the person’s conduct; or
(ii)
(j)
the person—
(i)
(ii)
was included in such a list but that inclusion is suspended or subject to conditions by reason of any matter concerning the person’s honesty or probity;
(iii)
was included in such a list but has been removed or contingently removed from that list by reason of any matter concerning the person’s honesty or probity;
(iv)
is similarly prevented from providing primary medical, dental ophthalmic or pharmaceutical services elsewhere in the United Kingdom in circumstances corresponding to those set out in paragraphs (i) to (iii) in relation to England,
and in relation to whether a matter concerns the person’s honesty or probity, the question, in any case that is disputed by the person concerned, is to be determined by the Secretary of State or, where requested by the Secretary of State in cases not concerning the chairperson’s qualification to hold office, the chairperson.
(2)
Subject to sub-paragraph (3), for the purposes of this paragraph, “health service bodies” means—
(a)
F1NHS England;
(b)
(c)
(d)
(e)
a special health authority;
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(p)
an integrated care board
(3)
For the purposes of sub-paragraph (1)(a), in the case of an appointment of a non-officer member other than the chairperson the first reference in that sub-paragraph to “health service body” does not include reference to an NHS trust or foundation trust.
(4)
For the purposes of sub-paragraph (1)(b) and (c), the date of conviction is deemed to be the date on which the ordinary period allowed for making an appeal or application with respect to the conviction expires or, if such an appeal or application is made, the date on which the appeal or application is finally disposed of or abandoned or fails by reason of its not being prosecuted.
(5)
In relation to a person who would otherwise be disqualified under sub-paragraph (1)(c), the Secretary of State may in his discretion decide that a conviction for an offence of theft or fraud is not to disqualify a person from office if the offence is one it is appropriate to overlook by reason of the youth of the person at the time of the commission of the offence or the impact of the offence or other mitigating factors.
(6)
For the purposes of sub-paragraph (1)(e), a person is not to be treated as having been in paid employment by reason only of having been—
(a)
in the case of an NHS foundation trust, the chairperson, a governor or a non-executive director of the trust;
(b)
in the case of a clinical commissioning group, the chair or a member of the governing body of the group; or
(c)
in the case of any other health service body, the chairperson, a member or a director of the health service body in question.
Cessation of disqualification
4.
(1)
Subject to paragraph (2), where a person is disqualified under paragraph 3(1)(e), (f), (g), (i) or (j) that person may, after the expiry of two years beginning on the date of the dismissal, removal, refusal or suspension (as the case may be), apply in writing to the Secretary of State to remove the disqualification, and the Secretary of State may direct that the disqualification is to cease.
(2)
Where the Secretary of State refuses an application to remove a disqualification, no further application may be made by that person until the expiry of the period of two years beginning with the date of the application, and this sub-paragraph is to apply to any subsequent application.
Termination of tenure of office of chairperson and non-officer members
5.
(1)
The chairperson or a non-officer member may resign from that office at any time during the term of that office by giving notice in writing to the Secretary of State.
(2)
Where the Secretary of State is of the opinion that it is not in the interests of, or conducive to the good management of, the Authority or of the health service that the chairperson or non-officer member should continue to hold office, the Secretary of State may forthwith terminate the chairperson’s or non-officer member’s tenure of office by giving the chairperson or that member notice in writing to that effect.
(3)
If the chairperson or a non-officer member fails to attend three successive meetings of the Authority the Secretary of State must forthwith terminate that person’s tenure of office unless satisfied that—
(a)
the absence was due to a reasonable cause; and
(b)
the person in question will be able to attend meetings of the Authority within such a period as the Secretary of State considers reasonable.
(4)
Where a person has been appointed to be the chairperson or a non-officer member, and becomes disqualified for appointment under paragraph 3, the chairperson or that member, as the case may be, must notify the Secretary of State in writing of such disqualification.
(5)
Where it comes to the notice of the Secretary of State (whether under sub-paragraph (4) or otherwise) that at the time of a person’s appointment or later that person was so disqualified, the Secretary of State must forthwith declare that the person in question was not duly appointed and notify that person in writing to that effect, and upon receipt of any such notification, the person’s tenure of office, if any, must be terminated, and the person must cease to act as chairperson or member, as the case may be.
(6)
If it appears to the Secretary of State that the chairperson or a non-officer member has failed to comply with paragraph 14 (disability on account of pecuniary interest) the Secretary of State may forthwith terminate that person’s tenure of office by giving the person notice in writing to that effect.
Suspension of appointee
6.
(1)
The Secretary of State may suspend a chairperson or a non-officer member (“an appointee”) from office while the Secretary of State considers whether—
(a)
to remove the appointee from office under paragraph 5(2), (3) or (6); or
(b)
the appointee has become disqualified for appointment under paragraph 3, or was so disqualified at the time of appointment, and if so, in the case of disqualification under paragraph 3(1)(c), whether discretion should be exercised under paragraph 3(5).
(2)
The Secretary of State must give notice in writing to the appointee of the decision to suspend and the suspension takes effect on receipt of such notification.
(3)
A notice under sub-paragraph (2) may be—
(a)
delivered in person, in which case the appointee is treated as receiving it when it is delivered; or
(b)
sent by first class post to the appointee’s last known address, in which case the appointee is treated as receiving it on the third day after the day on which it was posted.
(4)
The initial period of suspension must not exceed 6 months.
(5)
The Secretary of State may review the appointee’s suspension at any time.
(6)
The Secretary of State must review the appointee’s suspension if requested in writing by the appointee to do so, but need not carry out a review less than 3 months after the beginning of the initial period of suspension.
(7)
A review must take into account any representations made by the appointee.
(8)
Following a review, the Secretary of State may—
(a)
revoke the suspension; or
(b)
suspend the appointee for another period of not more than 6 months from the expiry of the current period.
(9)
The Secretary of State must revoke the suspension if at any time the Secretary of State decides that—
(a)
there are no grounds to remove the chairperson or non-officer member from office under paragraph 5(2), (3) or (6);
(b)
there are such grounds but the Secretary of State does not remove the appointee from office as chairperson or non-officer member, as the case may be, under these provisions; or
(c)
the appointee is not disqualified for appointment under paragraph 3.
Suspension of chairperson: appointment of vice-chairperson
7.
(1)
This paragraph applies where the chairperson is suspended under paragraph 6.
(2)
If a vice-chairperson has been appointed under paragraph 8(1) that appointment is to cease to have effect.
(3)
The Secretary of State may re-appoint the person mentioned in sub-paragraph (2) or appoint another non-officer member to be the vice-chairperson.
(4)
The appointment of a vice-chairperson under sub-paragraph (3) is to be for a period, not exceeding the shorter of—
(a)
the period for which the chairperson is suspended; and
(b)
the remainder of the non-officer member’s term as a member of the Authority.
(5)
When the period for which a person is appointed as vice-chairperson expires, the Secretary of State may re-appoint that person, or appoint another non-officer member as vice-chairperson.
(6)
Any person appointed under sub-paragraph (3) or (5) may at any time resign from the office of vice-chairperson by giving notice in writing to the Secretary of State.
(7)
A notice given under sub-paragraph (6) is to take effect—
(a)
where a date is specified in the notice as that on which the resignation is to take effect, on that date; or
(b)
in any other case, on the date that the notice is received by the Secretary of State.
(8)
The Secretary of State may terminate a person’s appointment as vice-chairperson under sub-paragraph (3) or (5) if the Secretary of State is of the opinion that it would be in the best interests of the Authority for another non-officer member of the Authority to be vice-chairperson.
(9)
If—
(a)
a person resigns from the office of vice-chairperson under sub-paragraph (6); or
(b)
the Secretary of State terminates a person’s appointment as vice-chairperson under sub-paragraph (8),
the Secretary of State may appoint another non-officer member as vice-chairperson.
Appointment of vice-chairperson
8.
(1)
The chairperson and members may appoint one of the non-officer members to be vice-chairperson for such period, not exceeding the remainder of that non-officer member’s term as a member, as they may specify on making the appointment.
(2)
Any member so appointed may at any time resign from the office of vice-chairperson by giving notice in writing to the chairperson.
(3)
This paragraph does not apply where paragraph 7 applies.
Powers of vice-chairperson
9.
(1)
This paragraph applies where—
(a)
the chairperson of the Authority is suspended under paragraph 6 and a non-officer member of the Authority is appointed to be vice-chairperson under paragraph 7; or
(b)
a non-officer member of the Authority is appointed to be vice-chairperson under paragraph 8, and the chairperson of the Authority—
(i)
has died or has ceased to hold office; or
(ii)
is unable to perform the chairperson’s duties owing to illness, absence from England or any other cause.
(2)
Where this paragraph applies—
(a)
the vice-chairperson is to act as chairperson until a new chairperson is appointed or the existing chairperson resumes the chairperson’s duties, as the case may be; and
(b)
the references to the chairperson of the Authority in this Order are, so long as there is no chairperson able to perform the chairperson’s duties, to be taken to include references to the vice-chairperson.
PART 2Committees etc and the conduct of business by the Authority
Appointment of committees and sub-committees
10.
(1)
Subject to such directions as may be given by the Secretary of State, the Authority may, and if so directed by the Secretary of State, must, appoint committees of the Authority consisting wholly or partly of members of the Authority or wholly of persons who are not members of the Authority.
(2)
A committee appointed under this paragraph may, subject to such directions as may be given by the Secretary of State to the Authority or by the Authority to that committee, appoint sub-committees consisting wholly or partly of members of the committee (whether or not they are members of the Authority) or wholly of persons who are not members of the Authority or the committee.
(3)
Subject to such directions as may be given by the Secretary of State, paragraphs 3 and 4 (disqualification and cessation of disqualification) apply to the appointment of members of committees and sub-committees appointed under this paragraph as they apply to the appointment of non-officer members of the Authority.
Arrangements for the exercise of functions
11.
Subject to such directions as may be given by the Secretary of State, the Authority may make arrangements for the exercise, on behalf of the Authority, of any of its functions by a committee or sub-committee appointed by virtue of paragraph 10 or by an officer of the Authority, in each case subject to such restrictions and conditions as the Authority thinks fit.
Meetings and proceedings
12.
(1)
The meetings and proceedings of the Authority must be conducted in accordance with the procedural requirements in paragraph 13 and with standing orders made under sub-paragraph (2).
(2)
Subject to the procedural requirements in paragraph 13, to paragraph 14 and to such directions as may be given by the Secretary of State, the Authority must make, and may vary or revoke, standing orders for the regulation of its proceedings and business, including provision for the suspension of all or any of the standing orders, and such standing orders may permit attendance at meetings by video or other televisual link subject to the chairperson being satisfied that the member so attending is clearly identifiable during the meeting.
(3)
Subject to such directions as may be given by the Secretary of State, the Authority may make, vary and revoke standing orders relating to the quorum, proceedings and place of meeting of any committee or sub-committee of the Authority, but subject to such standing orders, the quorum, proceedings and place of meeting are to be such as the committee or sub-committee may determine.
Procedural requirements for meetings and proceedings of the Authority
13.
(1)
The first meeting of the Authority is to be held on such day and at such place as may be fixed by the chairperson, who is to have responsibility for convening the meeting.
(2)
The chairperson may call a meeting of the Authority at any time.
(3)
If a requisition for a meeting, signed by at least two members or one third of the total number of members, whichever is the greater number, is presented to the chairperson, and the chairperson either—
(a)
refuses to call a meeting; or
(b)
without so refusing, does not within 21 days after the requisition has been presented call a meeting,
those members may forthwith call a meeting.
(4)
Before each meeting of the Authority, a notice of the meeting which—
(a)
specifies the principal business proposed to be transacted at it; and
(b)
is signed by the chairperson or by an officer of the Authority authorised by the chairperson to sign on the chairperson’s behalf,
must be delivered to each member, or sent by post to the member’s last known address, at least seven clear days before the day of the meeting.
(5)
The proceedings of any meeting are not invalidated by a failure to deliver such notice to any member.
(6)
In the case of a meeting called under sub-paragraph (3) by members, the notice must be signed by those members and no business other than that specified in the notice is to be transacted at the meeting.
(7)
At any meeting of the Authority the chairperson or, in the chairperson’s absence, the vice-chairperson (if there is one and the vice-chairperson is present) is to preside.
(8)
If the chairperson and any vice-chairperson are absent, such other non-officer member present as the other members present choose for the purpose is to preside.
(9)
Every question at a meeting is to be determined by a majority of votes of the members present and competent to vote on the question and, in the case of an equality of votes, the person presiding at the meeting is to have a second or casting vote.
(10)
No business is to be transacted at any meeting unless at least three of the members or one third of the membership, whichever is the greater number (the chairperson being included for this purpose in the reckoning), is present.
(11)
Minutes of the proceedings of a meeting must be prepared recording the names of the members present at that meeting, and signed at the next ensuing meeting by the person presiding at that next meeting.
Disability of chairperson and members in proceedings on account of pecuniary interest
14.
(1)
Subject to the following provisions of this paragraph, if the chairperson or a member has any pecuniary interest, direct or indirect, in any contract, proposed contract or other matter and is present at any meeting of the Authority to which the contract, proposed contract or other matter is the subject of consideration, the chairperson or that member must at the meeting and as soon as practicable after its commencement, disclose that interest and must not take part in the consideration or discussion of the contract, proposed contract or other matter or vote on any question with respect to it.
(2)
The Secretary of State may, subject to such conditions as the Secretary of State considers appropriate to impose, remove any disability imposed by this paragraph in any case in which it appears to the Secretary of State to be in the interests of the health service that the disability should be removed.
(3)
The Authority may, by standing orders made under paragraph 12(2), provide for the exclusion of the chairperson or a member from a meeting of the Authority while any contract, proposed contract or other matter in which the chairperson or that member has a pecuniary interest, direct or indirect, is under consideration.
(4)
Any remuneration, compensation or allowances payable to the chairperson or a member by virtue of paragraph 2 to Schedule 6 of the NHS Act (pay and allowances) is not to be treated as a pecuniary interest for the purpose of this paragraph.
(5)
Subject to sub-paragraphs (2) and (6), the chairperson or member (in this paragraph, the “appointee”) is to be treated for the purpose of this paragraph as having an indirect pecuniary interest in a contract, proposed contract or other matter if—
(a)
the appointee, or a nominee of the appointee, is a director of a company or other body with which the contract was made or is proposed to be made or which has a direct pecuniary interest in the other matter under consideration; or
(b)
the appointee is a business partner of, or is in the employment of, a person with whom the contract was made or is proposed to be made or who has a direct pecuniary interest in the other matter under consideration,
and in the case of two persons living together as a couple (whether or not they are spouses or civil partners) the interest of one is, if known to the other, to be deemed for the purpose of this paragraph to be an interest of the other.
(6)
An appointee is not to be treated as having a pecuniary interest in any contract, proposed contract or other matter by reason only—
(a)
of the appointee’s membership of a company or other body if the appointee has no beneficial interest in any securities of that company or other body; or
(b)
of an interest in any company, body or person with which the appointee is connected as mentioned in sub-paragraph (5) which is so remote or insignificant that it cannot reasonably be regarded as likely to influence the appointee in the consideration or discussion of, or voting on, any question with respect to that contract, proposed contract or other matter.
(7)
Where an appointee has an indirect pecuniary interest in a contract, proposed contract or other matter by reason only of a beneficial interest in securities of a company or other body, and
(a)
the total nominal value of those securities does not exceed £5,000 or one-hundredth of the total nominal value of the issued share capital of the company or body, whichever is the lesser; and
(b)
if the share capital is of more than one class, the total nominal value of shares of any one class in which the appointee has a beneficial interest does not exceed one-hundredth of the total issued share capital of that class,
this paragraph does not prohibit the appointee from taking part in the consideration or discussion of the contract, proposed contract or other matter, or from voting on any question with respect to it but in such circumstances the appointee must nonetheless disclose the appointee’s interest.
(8)
This paragraph applies to a committee or sub-committee as it applies to the Authority and applies to a member of any such committee or sub-committee (whether or not the member of the committee or sub-committee is also a member of the Authority) as it applies to a member of the Authority.
(9)
In this paragraph—
“securities” means—
(a)
shares or debentures, whether or not constituting a charge on the assets of a company or other body, or rights or interests in any share or such debenture; or
(b)
rights (whether actual or contingent) in respect of money lent to, or deposited with, any building society or society, other than a society registered as a credit union, which is—
“shares” means shares in the share capital of a company or other body or the stock of a company or other body.
Reports by the Authority
15.
The Authority must make such reports to the Secretary of State in such manner and at such time as the Secretary of State may direct, and must furnish to the Secretary of State such information as the Secretary of State may from time to time require.
Public meeting
16.
Where under paragraph 15 the Authority makes an annual report to the Secretary of State which directions mentioned in that paragraph require to be published, the Authority must present the report at a public meeting held not later than 30 days after the date on which the report was made.
F6SCHEDULE 3Abolition of the Authority
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