Source: http://www.legislation.gov.uk/ukpga/2008/17/part/2/enacted/data.xht?view=snippet&wrap=true
Timestamp: 2018-08-19 08:39:26
Document Index: 94073673

Matched Legal Cases: ['art 2', 'art 15', 'art 42', 'art 42', 'art 1', 'art 1', 'art 4']

Housing and Regeneration Act 2008 (c. 17) xmlns:atom="http://www.w3.org/2005/Atom"
Part 2Regulation of Social Housing
Chapter 2The Social Housing Regulator
81Establishment
(1)There shall be a body corporate to be known as the Office for Tenants and Social Landlords.
(2)The Office—
(a)may be referred to in an enactment or other instrument as “the Regulator of Social Housing”, and
(b)is referred to in this Part as “the regulator”.
(3)The Office (and any member of the Office)—
(1)The regulator shall consist of—
(a)a person appointed by the Secretary of State as chair,
(b)neither less than 3 nor more than 10 other members appointed by the Secretary of State, and
(c)the chief executive appointed under section 84.
(2)The Secretary of State must consult the chair before appointing other members.
(3)The Secretary of State may appoint a person under subsection (1) only if satisfied that the person has no financial or other personal interest in the performance of functions.
(4)Former membership of the Housing Corporation is not a bar to appointment.
(5)In this Part “appointed member” means—
(6)A vacancy for, or a defect in the appointment of, the chair, the chief executive or another member does not prevent or invalidate proceedings.
83Tenure
(1)An appointed member holds and vacates office in accordance with the terms of appointment (subject to this section).
(2)A period of appointment may not exceed 5 years (but a member may be reappointed).
(3)An appointed member may resign by notice to the Secretary of State.
(4)The Secretary of State may dismiss an appointed member if satisfied that any of the following cases applies—
(a)Case 1 is where a member has been absent from meetings of the regulator for a period of more than 6 months without its permission.
(b)Case 2 is where a member is subject to—
(i)a bankruptcy restrictions order, or
(ii)an interim bankruptcy restrictions order.
(c)Case 3 is where—
(i)a member’s estate has been sequestrated by a court in Scotland, or
(ii)under the law of Scotland, a member has made a composition or arrangement with, or granted a trust deed for, creditors.
(d)Case 4 is where a member has a financial or other personal interest which is likely to influence the performance of functions.
(e)Case 5 is where a member has misbehaved or is for any other reason unable, unsuitable or unwilling to perform functions.
85Other staff
The regulator may appoint employees (in addition to the chief executive).
105Cooperation with the HCA
(1)The regulator shall cooperate with the HCA.
(2)In particular, the regulator shall consult the HCA on matters likely to interest it.
107Collection
(1)The regulator may for a purpose connected with its functions require a person to provide documents or information which it has reason to believe is or may be in the person’s possession and which relates to—
(a)the financial or other affairs of a registered provider;
(b)activities which are or may be carried out by a person who is, or who has applied to become, a registered provider.
(2)A requirement may be imposed on a person other than the body to which the document or information relates only if—
(a)the body has been required to provide the document or information but has failed to do so, or
(b)the regulator thinks that the body is unable to provide it.
(3)A requirement may specify—
(4)The regulator may copy or record documents or information provided.
(5)Failure to comply with a requirement without reasonable excuse is an offence.
(6)Intentionally altering, suppressing or destroying a document or information to which a requirement relates is an offence.
(7)If a person fails to comply with a requirement the High Court may, on an application by the regulator, make an order for the purpose of remedying the failure.
Chapter 3Registration
112Eligibility for registration
(1)An English body is eligible for registration if—
(a)it satisfies the following conditions, and
(b)it does not fall within the exceptions in section 113.
(2)Condition 1 is that the body—
(a)is a provider of social housing in England, or
(b)intends to become a provider of social housing in England.
(3)Condition 2 is that the body satisfies any relevant criteria set by the regulator as to—
(a)its financial situation,
(b)its constitution, and
(c)other arrangements for its management.
(4)Before setting criteria the regulator must consult—
113Local authority non-registrable bodies
(1)This section sets out the exceptions to section 112(1).
(2)Exception 1 is a local housing authority.
(3)Exception 2 is a county council.
(4)Exception 3 is a person controlled by an authority within Exception 1 or 2.
(5)The Secretary of State may make regulations defining when a person is controlled by an authority for the purpose of Exception 3.
(6)The definition may be expressed by reference to a definition for the time being given in a document identified by regulations under section 21(2)(b) of the Local Government Act 2003 (c. 26) (accounting practices for local authorities).
114Registration of local authorities
(a)repeal section 113, or
(b)amend it so as to permit the registration of specified classes of local authority.
(2)The Secretary of State may by order require the regulator to register—
(a)a specified local authority, or
(b)a specified class of local authority.
(3)Registration under subsection (2)—
(a)takes effect in accordance with any provision of the order about timing or other procedural or incidental matters,
(b)does not require an application for registration, and
(c)may apply to a local authority whether or not it is eligible for registration by virtue of subsection (1).
(4)If the Secretary of State thinks it necessary or desirable in connection with the registration of local authorities, the Secretary of State may by order—
(a)provide for a provision of this Part or any other enactment not to apply in relation to registered local authorities;
(b)provide for a provision of this Part or any other enactment to apply with specified modifications in relation to registered local authorities;
(c)amend a provision of this Part or any other enactment.
(a)“local authority” means an authority or person to whom section 113 applies or has applied, and
(b)“registered local authorities” means authorities or persons who are registered, registrable or to be registered as a result of an order under subsection (1) or (2) above.
(a)any authority or person likely to be affected by it, and
(b)such other persons as the Secretary of State thinks fit.
Chapter 4Registered providers
127Directions
(1)The regulator may give directions to registered providers about the preparation of their accounts.
(2)A direction may be given to a profit-making registered provider only in so far as its accounts relate to social housing activities.
(3)The power must be exercised with a view to ensuring that accounts—
(a)are prepared in proper form, and
(b)present a true and fair view of—
(i)the state of affairs of each registered provider in relation to its social housing activities, and
(ii)the disposition of funds and assets which are, or have been, in its hands in connection with those activities.
(4)A direction may require a registered charity to use a specified method for distinguishing in its accounts between—
(a)matters relating to its social housing activities, and
(b)other matters.
(a)may make provision that applies generally or only to specified cases, circumstances or registered providers, and
(b)may make different provision for different cases, circumstances or registered providers.
(6)A direction that relates to more than one registered provider may be given only after consulting one or more bodies appearing to the regulator to represent the interests of registered providers.
(7)The regulator shall make arrangements for bringing a direction to the attention of every registered provider to which it applies.
128Submission to regulator
(1)Each registered provider shall send a copy of its accounts to the regulator within the period of 6 months beginning with the end of the period to which the accounts relate.
(2)The accounts must be accompanied by—
(a)an auditor’s report, or
(b)in the case of accounts that by virtue of an enactment are not subject to audit, any report that is required to be prepared in respect of the accounts by virtue of an enactment.
(3)The report must specify whether the accounts comply with any relevant directions under section 127.
129Companies exempt from audit
(1)This section applies in relation to a registered provider which—
(a)is a registered company other than a charity, and
(b)is exempt from the audit requirements of the Companies Act 2006 (c. 46) by virtue of section 477 of that Act (small companies' exemption).
(2)The directors of the company shall cause a report to be prepared in accordance with section 130 and made to the company’s members in respect of the company’s individual accounts for any year in which the company takes advantage of its exemption from audit.
(3)“Individual accounts” has the same meaning as in section 396 of the Companies Act 2006.
130Exempt companies: accountant’s report
(1)The report required by section 129 must be prepared by a person (“the reporting accountant”) who is eligible under section 131.
(2)The report must state whether the individual accounts are in accordance with the company’s accounting records kept under section 386 of the Companies Act 2006.
(3)On the basis of the information contained in the accounting records the report must also state whether—
(a)the accounts comply with Part 15 of the Companies Act 2006;
(b)the company is entitled to exemption from audit under section 477 of that Act (small companies' exemption) for the year in question.
(4)The report must give the name of the reporting accountant and be signed and dated.
(5)The report must be signed—
(a)where the reporting accountant is an individual, by that individual, and
(6)In this section and sections 131 and 132 “firm” has the meaning given by section 1173(1) of the Companies Act 2006.
131Exempt companies: reporting accountant
(1)A person is eligible for appointment by a company as a reporting accountant under section 130 if—
(a)either of the following conditions is satisfied, and
(b)the person would not be prohibited from acting as auditor of the company by virtue of section 1214 of the Companies Act 2006 (c. 46).
(2)Condition 1 is satisfied if the person is a member of a body listed in subsection (4) and under its rules—
(a)the person is entitled to engage in public practice, and
(b)is not ineligible for appointment as a reporting accountant.
(3)Condition 2 is satisfied if the person—
(a)is subject to the rules of a body listed in subsection (4) in seeking appointment or acting as a statutory auditor under Part 42 of the Companies Act 2006, and
(b)under those rules, is eligible for appointment as a statutory auditor under that Part.
(4)The bodies mentioned in subsections (2) and (3) are—
(5)The Secretary of State may by order amend the list of bodies in subsection (4).
(6)References in this section to the rules of a body are to rules (whether or not laid down by the body itself) which the body has power to enforce and which are relevant for the purposes of Part 42 of the Companies Act 2006 (statutory auditors) or this section; and this includes rules relating to the admission and expulsion of members of the body so far as relevant for the purposes of that Part or this section.
(7)An individual or a firm may be appointed as a reporting accountant; and section 1216 of the Companies Act 2006 applies to the appointment of a partnership constituted under the law of—
(c)any other country or territory in which a partnership is not a legal person.
132Application of Companies Act
(1)The provisions of the Companies Act 2006 listed in subsection (2) apply to the reporting accountant and a reporting accountant’s report as they apply to an auditor of the company and an auditor’s report on the company’s accounts (with any necessary modifications).
(a)sections 423 to 425 (duty to circulate copies of annual accounts),
(b)sections 431 and 432 (right of member or debenture holder to demand copies of accounts),
(c)sections 434 to 436 (requirements in connection with publication of accounts),
(d)sections 441 to 444A (duty to file accounts with registrar of companies),
(e)section 454(4)(b) and regulations made under that provision (functions of auditor in relation to revised accounts),
(f)sections 499 to 502 (auditor’s right to information), and
(g)sections 505 and 506 (name of auditor to be stated in published copies of report).
(3)In sections 505 and 506 as they apply by virtue of this section in a case where the reporting accountant is a firm, any reference to the senior statutory auditor shall be read as a reference to the person who signed the report on behalf of the firm.
134Non-audited industrial and provident society
(1)This section applies to a registered provider which is an industrial and provident society.
(2)Section 9A of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) applies to the society as if subsection (1)(b) were omitted (accountant’s report required only where turnover exceeds specified sum).
(3)The regulator may require the society to—
(a)appoint a qualified auditor to audit the society’s accounts and balance sheet for any year of account in respect of which section 4 of the Friendly and Industrial and Provident Societies Act 1968 (audit requirements) has been disapplied (see section 4A of that Act), and
(b)send a copy of the auditor’s report to the regulator by a specified date.
(4)A requirement under subsection (3) may be imposed only during the year of account following the year to which the accounts relate.
“qualified auditor” means a person who is a qualified auditor for the purposes of Friendly and Industrial and Provident Societies Act 1968 (c. 55), and
“year of account” has the meaning given by section 21(1) of that Act.
135Charity
(1)This section applies to a non-profit registered provider which is a registered charity.
(2)The charity shall—
(a)keep proper accounting records of its transactions and its assets and liabilities in relation to its housing activities, and
(b)maintain a satisfactory system of control of those records, its cash holdings and its receipts and remittances in relation to those activities.
(3)For each period of account the charity shall prepare—
(a)a revenue account giving a true and fair view of the charity’s income and expenditure during the period, so far as relating to its housing activities, and
(b)a balance sheet giving a true and fair view of the state of affairs of the charity as at the end of the period.
(4)The revenue account and balance sheet must be signed by at least two directors or trustees.
(5)“Period of account” means—
(a)a period of 12 months, or
(b)such other period not less than 6 months nor more than 18 as the charity may, with the consent of the regulator, determine.
(6)This section does not affect any obligation under sections 41 to 45 of the Charities Act 1993 (c. 10) (charity accounts).
136Charity: audit
(1)This section applies in relation to the accounts of a charity under section 135(3).
(2)If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the accounts and report on them in accordance with section 137.
(3)If neither Condition is met, the charity shall cause a qualified person (“the reporting accountant”) to report on the accounts in accordance with section 138.
(4)Condition 1 is met if the accounts relate to a period during which the charity’s gross income arising in connection with its housing activities was greater than the sum specified in section 43(1)(a) of the Charities Act 1993.
(a)the accounts relate to a period during which the charity’s gross income arising in connection with its housing activities was greater than the accounts threshold as defined by section 43(1) of the Charities Act 1993, and
(b)at the end of the period the aggregate value of its assets (before deduction of liabilities) in respect of its housing activities was greater than the sum specified in section 43(1)(b).
(6)“Gross income” has the same meaning as in section 43 of the Charities Act 1993 (c. 10).
(7)“Qualified person” means a person professionally qualified as an accountant.
137Charity: auditor’s report
(1)An auditor appointed for the purposes of section 136(2) or 139(2) in respect of a charity’s accounts shall make a report to the charity in accordance with this section.
(a)whether the revenue account gives a true and fair view of the charity’s income and expenditure, so far as relating to its housing activities, and
(b)whether the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period to which the accounts relate.
(3)The report must give the name of the auditor and be signed.
(4)The auditor shall, in preparing the report, carry out such investigations as are necessary to form an opinion as to—
(a)whether the charity has complied with section 135(2) during the period to which the accounts relate, and
(b)whether the accounts are in accordance with accounting records kept under section 135(2)(a).
(5)If the auditor thinks that the charity has not complied section 135(2) or that the accounts are not in accordance with its accounting records, that must be stated in the report.
(6)If the auditor fails to obtain all the information and explanations which the auditor thinks necessary for the purposes of the audit, that must be stated in the report.
138Charity: accountant’s report
(1)A reporting accountant appointed for the purposes of section 136(3) in respect of a charity’s accounts shall make a report to the charity in accordance with this section.
(2)The report must state whether the accounts are in accordance with accounting records kept under section 135(2)(a).
(3)On the basis of the information in the accounting records the report must also state whether—
(a)the accounts comply with the requirements of the Charities Act 1993;
(b)section 136(3) applied in respect of the accounts.
(4)The report must give the name of the reporting accountant and be signed.
(5)If the reporting accountant fails to obtain all the information and explanations which the reporting accountant thinks necessary for the purposes of preparing the report, that must be stated in the report.
139Charity: extraordinary audit
(1)This section applies where, in accordance with section 136(3), a charity appoints a reporting accountant to prepare a report in respect of any accounts.
(2)The regulator may require the charity to—
(a)cause a qualified person to audit the accounts and prepare a report on them in accordance with section 137, and
(3)A requirement under subsection (2) may be imposed only during the period of account following the period to which the accounts relate.
“period of account” has the meaning given by section 135(5), and
“qualified person” has the meaning given by section 136(7).
140Charity: auditor’s powers
(1)This section applies to a person who is appointed by a charity for the purposes of section 136(2) or (3) or 139(2).
(2)The charity must grant the person access to its documents, if or in so far as they relate to its housing activities.
(3)An officer of the charity must provide such information or explanations as the person thinks necessary.
142High Court
(1)If a registered provider fails to comply with a direction, provision or requirement mentioned in section 141(1), the High Court may on the application of the regulator make an order for the purpose of remedying the failure.
(2)An order may include provision about costs.
143Disclosure
(1)This section applies to information that a person has received while acting—
(a)as auditor of a registered provider, or
(b)as a reporting accountant in relation to a registered provider.
(2)The person may disclose the information to the regulator for a purpose connected with the regulator’s functions—
(a)despite any duty of confidentiality, and
(b)whether or not the regulator requests the information.
(3)The reference to disclosing information includes expressing an opinion on it.
(4)“Reporting accountant” means a person who is appointed to prepare a report which, by virtue of any enactment, has to be prepared in respect of accounts that are not subject to audit.
144Preparatory steps: notice
A step specified in the Table has effect only if the person specified has given the regulator notice.
Person to give notice
Any step, of a kind prescribed for the purposes of this section by the Secretary of State by order, to enforce a security over land held by a registered provider The person taking the step
Presenting a petition for the winding up of a registered provider which is—
a registered company, or
But not the presenting of a petition by the regulator under section 166
Passing a resolution for the winding up of a registered provider which is—
But not the passing of a resolution for winding-up where the regulator’s consent is required under section 162 or 164
Making an administration application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986 in respect of a registered provider which is a registered company The applicant
Appointing an administrator under paragraph 14 or 22 of that Schedule in respect of a registered provider which is a registered company The person making the appointment
Filing with the court a copy of a notice of intention to appoint a person under either of those paragraphs in respect of a registered provider which is a registered company The person filing the notice
145Moratorium
(1)If a step specified in the Table below is taken in respect of a registered provider, a moratorium on the disposal of land by the provider begins.
(2)Where a step specified in the Table is taken in respect of a registered provider, the person specified must give the regulator notice as soon as is reasonably practicable.
(3)If the notice is not given the step is not invalidated (but the end of the moratorium depends on the notice being given — see section 146(2)).
(4)The regulator shall give the HCA a copy of any notice received under this section.
The presenting of a petition for winding up a registered provider which is—
But not the presenting of a petition by the directors or other governing body of the registered provider or by the regulator under section 166
The passing of a resolution for the winding up of a registered provider which is—
A decision by the directors or other governing body of a registered provider to present a petition for winding up where the registered provider is—
The directors or governing body
The making of an administration order in accordance with paragraph 13 of Schedule B1 to the Insolvency Act 1986 in respect of a registered provider which is a registered company The person who applied for the order
The appointment of an administrator under paragraph 14 or 22 of that Schedule in respect of a registered provider which is a registered company The person making the appointment
147Further moratorium
(a)a moratorium in respect of a registered provider ends otherwise than by cancellation, and
(b)a further step specified in section 145 is taken in relation to the provider within the period of 3 years beginning with the end of the moratorium.
(2)The further step does not automatically trigger a further moratorium.
(3)But the regulator may impose a further moratorium for a specified period, if each secured creditor of the registered provider whom the regulator is able to locate after making reasonable enquiries consents.
(4)If the regulator imposes a new moratorium it shall notify—
(b)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land, and
(5)This group of sections applies to a further moratorium as to a first moratorium (except for section 146(2)).
151Interim manager
(1)During a moratorium the regulator may appoint an interim manager of the registered provider.
(2)An appointment may relate to the registered provider’s affairs generally or to affairs specified in the appointment.
(3)Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment.
(4)An appointment under this section shall come to an end with the earliest of the following—
(b)the agreement of proposals under section 152, or
(5)An interim manager shall have—
(b)any other power in relation to the registered provider’s affairs required by the manager for the purposes specified in the appointment (including the power to enter into agreements and take other action on behalf of the registered provider).
152Proposals
(1)During a moratorium the regulator may make proposals about the future ownership and management of the registered provider’s land, with a view to ensuring that the property will be properly managed by a registered provider.
(2)In making proposals the regulator shall—
(a)have regard to the interests of the registered provider’s creditors as a whole, and
(b)so far as is reasonably practicable avoid worsening the position of unsecured creditors.
(3)Proposals may provide for the appointment of a manager in accordance with section 155 to implement all or part of the proposals.
(4)Proposals may not include anything which would result in—
(a)a preferential debt being paid otherwise than in priority to a non-preferential debt, or
(b)a preferential creditor (PC1) being paid a smaller proportion of a preferential debt than another preferential creditor (PC2) (unless PC1 consents).
(5)Proposals relating to a registered provider which is a charity (C1)—
(a)may not require it to act outside the terms of its trusts, and
(b)may provide for the disposal of accommodation only to another charity whose objects the regulator thinks are similar to those of C1.
153Proposals: procedure
(1)Before making proposals the regulator shall consult—
(b)its tenants (so far as is reasonably practicable),
(c)if the registered provider is an industrial and provident society, the Financial Services Authority, and
(d)if the registered provider is a registered charity, the Charity Commission.
(2)The regulator shall send a copy of proposals to—
(a)the registered provider and its officers,
(b)such of its secured creditors as the regulator is able to locate after making reasonable enquiries, and
(c)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land.
(3)The regulator shall also make arrangements for bringing proposals to the attention of—
(a)the registered provider’s members,
(b)its tenants, and
(c)its unsecured creditors.
(4)If each secured creditor to whom proposals were sent agrees to the proposals by notice to the regulator, the proposals have effect.
(5)Proposals may be agreed with modifications if—
(a)each secured creditor to whom the proposals were sent consents by notice to the regulator, and
(b)the regulator consents.
(6)The regulator shall send a copy of agreed proposals to—
(b)its secured creditors to whom the original proposals were sent,
(c)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land,
(d)if the registered provider is an industrial and provident society, the Financial Services Authority, and
(e)if the registered provider is a registered charity, the Charity Commission.
(7)The regulator shall also make arrangements for bringing agreed proposals to the attention of—
(8)Proposals may be amended by agreement between the secured creditors to whom the original proposals were sent and the regulator; and this section and section 152 apply to an amendment as to the original proposals.
154Proposals: effect
(1)The following are obliged to implement agreed proposals—
(c)its creditors, and
(d)any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land.
(2)The following shall co-operate with implementation of agreed proposals—
(a)in the case of a charitable trust, its trustees,
(b)in the case of an industrial and provident society, its committee members, and
(c)in the case of a registered company, its directors.
(3)Subsection (2) does not require or permit a breach of a fiduciary or other duty.
155Manager: appointment
(1)This section applies where agreed proposals provide for the appointment of a manager.
(2)The proposals must provide for the manager to be paid reasonable remuneration and expenses.
(3)The regulator shall appoint a manager.
(4)The regulator may give the manager directions (general or specific).
(5)The manager may apply to the High Court for directions (and directions of the regulator are subject to directions of the High Court).
(6)If the registered provider is a charity, the regulator must notify the Charity Commission that a manager has been appointed.
(7)The regulator may appoint a new manager in place of a person who ceases to be manager (in accordance with terms of appointment specified in the proposals or determined by the regulator).
156Manager: powers
(1)A manager—
(a)may do anything necessary for the purpose of the appointment,
(b)acts as the registered provider’s agent (and is not personally liable on a contract), and
(c)has ostensible authority to act for the registered provider (so that a person dealing with the manager in good faith and for value need not inquire into the manager’s powers).
(2)In particular, the terms of a manager’s appointment may confer power—
(a)to sell or otherwise dispose of land by public auction or private contract;
(b)to raise or borrow money;
(c)to grant security over land;
(d)to grant or accept surrender of a lease;
(e)to take a lease;
(f)to take possession of property;
(g)to appoint a solicitor, accountant or other professional to assist the manager;
(h)to appoint agents and staff (and to dismiss them);
(i)to make payments;
(j)to bring or defend legal proceedings;
(k)to refer a question to arbitration;
(l)to make any arrangement or compromise;
(m)to carry on the business of the registered provider;
(n)to carry out works and do other things in connection with the management or transfer of land;
(o)to take out insurance;
(p)to use the registered body’s seal;
(q)to execute in the name and on behalf of the registered provider any deed, receipt or other document;
(r)to do anything incidental to a power in paragraphs (a) to (q).
(3)A manager shall so far as is reasonably practicable consult and inform the registered provider’s tenants about an exercise of powers likely to affect them.
157Manager of industrial and provident society: extra powers
(1)This section applies to a manager appointed to implement proposals relating to an industrial and provident society.
(2)The appointment may confer on the manager power to make and execute on behalf of the society—
(a)an instrument providing for the amalgamation of the society with another industrial and provident society, or
(b)an instrument transferring its engagements.
(3)An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under section 50 of the Industrial and Provident Societies Act 1965 (c. 12) (amalgamation of societies by special resolution).
(4)An instrument transferring engagements has the same effect as a transfer of engagements under sections 51 and 52 of the Industrial and Provident Societies Act 1965 (transfer by special resolution to another society or company).
(5)A copy of the instrument shall be sent to and registered by the Financial Services Authority.
158Assistance by regulator
(1)The regulator may give financial or other assistance to a registered provider for the purpose of preserving its position pending the agreement of proposals.
(2)The regulator may give financial or other assistance to a registered provider, or a manager appointed under section 155, to facilitate the implementation of agreed proposals.
(3)In particular, the regulator may—
(a)lend staff;
(b)arrange payment of the manager’s remuneration and expenses.
(4)The regulator may do the following only with the Secretary of State’s consent—
(a)make grants,
(c)indemnify a manager,
(d)make payments in connection with secured loans, and
(e)guarantee payments in connection with secured loans.
159Applications to court
(1)A registered provider may apply to the High Court where the registered provider thinks that action taken by a manager is not in accordance with the agreed proposals.
(2)A creditor of a registered provider may apply to the High Court where the creditor thinks that action taken by a manager is not in accordance with the agreed proposals.
(3)The High Court may—
(a)confirm, annul or modify an act of the manager;
(b)give the manager directions;
(c)make any other order.
(4)If a person bound by agreed proposals (P1) thinks that action by another person (P2) breaches section 154, P1 may apply to the High Court.
(5)The High Court may—
(a)confirm, annul or modify the action;
(b)grant relief by way of injunction, damages or otherwise.
160Company: arrangements and reconstructions
(2)A voluntary arrangement under Part 1 of the Insolvency Act 1986 (c. 45) in relation to the company is effective only if the regulator has first consented.
(3)An order under section 899 of the Companies Act 2006 (c. 46) (court sanction for compromise or arrangement)—
(a)is effective only if the regulator has first consented, and
(b)does not take effect until a copy of the consent is delivered to the registrar of companies.
(4)An order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation) is effective only if the regulator has first consented.
(5)The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
162Company: winding up
(2)A special resolution for the voluntary winding-up of the company under the Insolvency Act 1986 (c. 45) is effective only if the regulator has first consented.
(3)The requirement under section 30 of the Companies Act 2006 (c. 46) (sending copy of resolution to registrar) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
163Industrial and provident society: restructuring
(2)The Financial Services Authority may register a resolution passed by the society for the purposes of restructuring provisions listed in subsection (3) only if—
(b)a copy of the consent accompanies the resolution as sent to the Authority.
(3)The following provisions of the Industrial and Provident Societies Act 1965 (c. 12) are the restructuring provisions—
(a)section 50 (amalgamation of societies),
(b)section 51 (transfer of engagements between societies), and
(c)section 52 of that Act (conversion into or amalgamation with registered company).
(4)Where a resolution is registered in accordance with subsection (2), any body created or to whom engagements are transferred—
166Winding up petition by regulator
(a)a registered company, or
(b)an industrial and provident society.
(2)The regulator may present a petition for the registered provider to be wound up under the Insolvency Act 1986 (c. 45) on any of the following grounds.
(3)Ground 1 is that the registered provider is failing properly to carry out its objects.
(4)Ground 2 is that the registered provider is unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986.
(5)Ground 3 is that the regulator has directed the registered provider under section 253 to transfer all its land to another person.
167Transfer of property
(a)where a non-profit registered provider which is an industrial and provident society is dissolved in accordance with section 55(a) or (b) of the Industrial and Provident Societies Act 1965 (c. 12), and
(b)where a non-profit registered provider which is a registered company is wound up under the Insolvency Act 1986.
(2)Any surplus property that is available after satisfying the registered provider’s liabilities shall be transferred—
(b)if the regulator directs, to a specified non-profit registered provider.
(3)If land belonging to the registered provider needs to be sold to satisfy its liabilities, the regulator may discharge those liabilities so as to ensure that the land is instead transferred in accordance with subsection (2).
(4)Where the registered provider dissolved or wound up is a charity, a registered provider may be specified under subsection (2)(b) only if it is a charity whose objects the regulator thinks are similar to those of the original charity.
(5)This section has effect despite anything in—
(a)the Industrial and Provident Societies Act 1965,
(b)the Insolvency Act 1986,
(c)the Companies Act 2006 (c. 46), or
(d)the constitution of a registered provider.
168Section 167: supplemental
(1)This section applies to property transferred to the regulator in accordance with section 167(2)(a).
(2)The regulator may dispose of the property only to a non-profit registered provider.
(3)Where the registered provider wound up or dissolved was a charity, the regulator may dispose of the property only to a registered provider—
(a)which is a charity, and
(b)whose objects the regulator thinks are similar to those of the original charity.
(4)If the property includes land subject to a mortgage or charge, the regulator may dispose of the land—
(a)subject to that mortgage or charge, or
(b)subject to a new mortgage or charge in favour of the regulator.
169Extension of sections 167 and 168
The Secretary of State may by regulations provide for sections 167 and 168 to apply in relation to a registered provider which is a charity but not a registered company—
(b)with specified modifications.
Chapter 6Regulatory powers
192Overview
193Provision of social housing
194Management
(1)The regulator may set standards for registered providers in matters relating to the management of their financial and other affairs.
195Code of practice
196Consultation
197Direction by Secretary of State
(2)The Secretary of State may give a direction under subsection (1)(a) or (b) only if it relates, in the Secretary of State’s opinion, to—
(3)In deciding whether to give a direction the Secretary of State shall, in particular, have regard to the regulator’s fundamental objectives.
200Survey: supplemental
201Inspections
(a)a registered provider’s performance of its functions in relation to the provision of social housing, or
(2)The person must not be a member of the regulator’s staff.
(3)If the purpose (or main purpose) of an inspection is to assess a registered provider’s performance by reference to standards under section 193 the regulator—
203Inspector’s powers
204Performance information
(1)The regulator may require a registered provider—
(a)to prepare an annual report assessing the provider’s performance by reference to standards under section 193 or 194, and
208Inquiry: evidence
210Extraordinary audit
(1)Where an inquiry in respect of a registered provider is being held, or has been held, under section 206, the regulator may require the registered provider to allow its accounts and balance sheet to be audited by a qualified auditor appointed by the regulator.
(2)“Qualified auditor” means a person eligible for appointment as auditor of the registered provider’s ordinary accounts.
(5)The registered provider shall pay the costs of the audit (including the auditor’s remuneration).
211Non-profit providers only
212Industrial and provident society: change of rules
(1)This section applies to an industrial and provident society.
(2)An amendment of the society’s rules requires consent if it—
(a)alters the society’s objects,
(6)In relation to an amendment which requires consent the requirement in section 10(1) of the Industrial and Provident Societies Act 1965 (c. 12) (sending copies of amendment of rules to FSA) is satisfied only if the copies are accompanied by a copy of the regulator’s consent.
213Charity: change of objects
(2)An amendment of the charity’s objects is effective only if the Charity Commission has first consented.
214Companies: change of articles
(2)An amendment of the company’s articles of association requires consent if it—
(a)alters the company’s objects,
(6)In relation to an amendment which requires consent the requirement in section 30 of the Companies Act 2006 (c. 46) (sending copy of resolution to registrar) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
217Accreditation
Chapter 7Enforcement powers
218Exercise of enforcement powers
219Overview
This group of sections allows the regulator to require a registered provider to take specified action to resolve a specified failure or other problem.
220Grounds for giving notice
(1)The regulator may give an enforcement notice to a registered provider if the regulator is satisfied that—
221Content
222Notifying HCA
If the regulator gives an enforcement notice it must send a copy to the HCA.
224Withdrawal
The regulator may withdraw an enforcement notice by notice to the registered provider.
225Sanction
(1)If a registered provider does not comply with an enforcement notice the regulator shall consider exercising another power under Chapter 6 or this Chapter.
226Overview
This group of sections allows the regulator to penalise failures on the part of registered providers by the imposition of fines.
227Grounds for imposition
(1)The regulator may require a registered provider to pay a penalty if the regulator is satisfied that—
229Amount
(1)The amount of a penalty imposed on the ground specified in Case 6 of section 227 may not exceed the maximum amount of fine that a magistrates' court could impose for the relevant offence.
231Representations
(1)A pre-penalty warning must specify a period during which the registered provider may make representations to the regulator.
232Notifying HCA
If the regulator imposes a penalty it must send a copy of the penalty notice to the HCA.
235Appeal
A registered provider who is given a penalty notice may appeal to the High Court against—
236Overview
This group of sections allows the regulator to award compensation to a victim of a failure on the part of a registered provider.
237Grounds for award
(1)The regulator may require a registered provider to pay compensation if the regulator is satisfied that—
238Nature
(1)Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.
239Housing ombudsman compensation
(1)The regulator may not award compensation to a person in respect of a matter if an ombudsman appointed by virtue of section 124 has awarded compensation to the person in respect of the matter.
241Impact
(1)This section applies when the regulator is considering—
243Representations
(1)A pre-compensation warning must specify a period during which the registered provider may make representations to the regulator.
244Enforcement
(1)Compensation shall be treated as a debt owed to the person to whom it is awarded.
245Appeal
A registered provider who is given a compensation notice may appeal to the High Court against—
246Overview
This group of sections gives the regulator various powers in relation to the management and constitution of registered providers.
247Management tender
248Section 247: supplemental
(1)Before acting under section 247(2) the regulator must give the registered provider a notice—
249Management transfer
250Section 249: supplemental
(1)Before acting under section 249(2) the regulator must give the registered provider a notice—
254Section 253: supplemental
(1)A transfer under section 253 shall be on terms specified in, or determined in accordance with, the requirement.
255Amalgamation
257Restrictions on dealings following inquiry
258Restrictions on dealings: supplemental
(1)Before making an order under section 256 or 257 the regulator must take all reasonable steps to give notice to—
259Suspension during inquiry
261Suspension under section 259 or 260: supplemental
(1)This section applies where the regulator suspends an officer, employee or agent of a registered provider under section 259 or 260.
262Disqualification of removed person
(1)A person is disqualified from acting as an officer of a registered provider if the person has been removed under—
263Register of disqualified persons
(1)The regulator shall maintain a register of persons disqualified under section 262.
265Acting while disqualified: other consequences
(1)This section applies where the regulator is satisfied that a person—
266Removal of officers
(1)The regulator may by order remove an officer of a non-profit registered provider if a Case listed in this section applies to the officer.
267Section 266: supplemental
(1)Before making an order under section 266 in respect of an officer the regulator must take all reasonable steps to give at least 14 days' notice to—
268Appeal against removal or suspension
A person removed or suspended under section 259, 260 or 266 may appeal to the High Court.
269Appointment of new officers
(1)The regulator may by order appoint a person as an officer of a non-profit registered provider—
270Officer
The Table gives the meaning of “officer” in relation to registered providers.
Registered charity which is not a registered company Trustee, secretary or treasurer
Industrial and provident society “Officer” within the meaning given by section 74 of the Industrial and Provident Societies Act 1965 (including a person co-opted to serve on the society’s committee)
Registered company “Officer” within the meaning given by section 1173 of the Companies Act 2006
271Subsidiary and associate
(1)A company is a “subsidiary” of a person if any of the following conditions is satisfied.
(a)is a member of the company, and
(b)has power, independent of any other person, to appoint or remove all or a majority of the board of directors.
(3)Condition 2 is that the person holds more than half in nominal value of the company’s equity share capital.
(4)Condition 3 is that the company is a subsidiary, within the meaning of the Companies Act 2006 (c. 46) or the Friendly and Industrial and Provident Societies Act 1968 (c. 55), of a company which is a subsidiary of the person by virtue of Condition 1 or 2.
(5)In relation to a company which is an industrial and provident society a reference to the board of directors is a reference to the committee of management.
(6)“Associate” of a provider means—
(a)a body of which the provider is a subsidiary, and
(b)any other subsidiary of that body.
272Family
(1)For the purposes of this Part one person is a member of the family of another if—
(a)they are, or live together as if they were, spouses or civil partners, or
(b)one is the parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece of the other.
(a)a relationship by marriage or civil partnership shall be treated as a relationship by blood (and, in particular, P’s stepchild shall be treated as P’s child), and
(b)a relationship by half-blood shall be treated as a relationship by whole blood.
273Disposal
(1)In this Part a reference to disposing of property is a reference to—
(a)selling it,
(b)leasing it,
(c)mortgaging it,
(d)making it subject to a charge, and
(e)disposing of it, or of any interest in it, in any other way.
(2)Granting an option to require a disposal shall be treated as making a disposal.
274Charities that have “received public assistance”
(1)For the purposes of this Part a registered charity has received public assistance if at least one of the following conditions is satisfied.
(2)Condition 1 is that the charity has received financial assistance from the HCA under section 19.
(3)Condition 2 is that the charity has received financial assistance under section 24 of the Local Government Act 1988 (c. 9) (assistance for privately let housing accommodation).
(4)Condition 3 is that the charity has had housing transferred to it pursuant to—
(a)a large scale disposal, within the meaning of section 34 of the Housing Act 1985 (c. 68), for which consent was required under section 32 or 43 of that Act, or
(b)a qualifying disposal that was made under section 135 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).
(5)Condition 4 is that the charity has received a grant or loan under—
(a)section 18 of the Housing Act 1996 (c. 52) (social housing grants),
(b)section 22 of that Act (assistance from local authorities),
(c)section 58 of the Housing Associations Act 1985 (c. 69) (grants or loans by local authorities),
(d)section 50 of the Housing Act 1988 (c. 50), section 41 of the Housing Associations Act 1985 or any enactment replaced by that section (housing association grant),
(e)section 51 of the Housing Act 1988 (c. 50) or section 54 or 55 of the Housing Associations Act 1985 (c. 69) (revenue deficit grant or hostel deficit grant),
(f)section 79 of the Housing Associations Act 1985 (loans by Housing Corporation),
(g)section 31 of the Housing Act 1974 (c. 44) (management grants), or
(h)any enactment mentioned in paragraph 2 or 3 of Schedule 1 to the Housing Associations Act 1985 (pre-1974 grants and certain loans).
275General
In this Part, except where the context requires otherwise—
“action” includes inaction, proposed action and decision,
“assured agricultural occupancy” has the same meaning as in Part 1 of the Housing Act 1988,
“assured tenancy” has the same meaning as in that Part,
“the Charity Commission” means the Charity Commission for England and Wales,
“committee”, in relation to an industrial and provident society, means the committee of management or other directing body of the society (including any person co-opted to serve on the committee, whether a member of the society or not),
“consent” means written consent,
“constitution” includes rules,
“conveyance” includes grant, assignment and any other instrument,
“district valuer” has the meaning given by section 622 of the Housing Act 1985 (c. 68),
means a house, flat or other building or part of a building occupied or intended to be occupied as a separate dwelling, and
includes any garden, yard, outhouse or other appurtenance belonging to, or usually enjoyed with, the dwelling,
“industrial and provident society” means a society registered under the Industrial and Provident Societies Act 1965 (c. 12),
“local authority” has the same meaning as in the Housing Associations Act 1985,
“local housing authority” has the same meaning as in the Housing Act 1985,
“maintenance” includes repair,
“mismanagement”, in relation to the affairs of a registered provider, means—
managed in contravention of a provision of this Part or of anything done under this Part, or
otherwise conducted improperly or inappropriately,
“non-registrable charity” means a charity which is not required to be registered, in accordance with section 3A of the Charities Act 1993 (c. 10),
“notice” means written notice (and to “notify” means to give written notice),
“preferential creditor” and “preferential debt” have the same meaning as in the Insolvency Act 1986 (c. 45),
“price” includes premium,
“registered charity” means a charity registered under the Charities Act 1993 (c. 10),
“registered company” means a company within the meaning of the Companies Act 2006 (c. 46),
“rent” includes payments under a licence to occupy accommodation,
“representations” means written representations,
“secure tenancy” has the same meaning as in Part 4 of the Housing Act 1985 (c. 68),
“secured creditor” means a creditor who holds a mortgage or charge (including a floating charge) over—
land held by a registered provider, or
a present or future interest of a registered provider in rents or other receipts from land,
“tenant” in relation to social housing includes other occupiers, and
a day which is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971 (c. 80).
276Index of defined terms
The Table lists expressions defined in this Part.
Appointed member Section 82
Associate Section 271
Assured agricultural occupancy Section 275
Assured tenancy Section 275
Charity Commission Section 275
Committee (industrial and provident society) Section 275
Compensation notice Section 240
Consent Section 275
Constitution Section 275
Conveyance Section 275
Disposal Section 273
District valuer Section 275
Dwelling Section 275
Enforcement notice Sections 219 to 225
Equity percentage arrangements Section 70(5)
Family Section 272
Financial year Section 104
Fundamental objectives Section 86
The HCA Section 275
Industrial and provident society Section 275
Local authority Section 275
Local housing authority Section 275
Low cost home ownership accommodation Section 70
Low cost rental accommodation Section 69
Maintenance Section 275
Mismanagement Section 275
Non-profit organisation Section 115
Non-registrable charity Section 275
Notice Section 275
Officer Section 270
Penalty notice Section 228
Pre-compensation warning Section 242
Pre-penalty warning Section 230
Preferential creditor Section 275
Preferential debt Section 275
Price Section 275
Profit-making organisation Section 115
Provider (of social housing) Section 80
Received public assistance (charities) Section 274
Registered charity Section 275
Registered company Section 275
Registered provider (of social housing) Section 80
The regulator Section 81
The Regulator of Social Housing Section 81
Rent Section 275
Representations Section 275
Secure tenancy Section 275
Secured creditor Section 275
Shared ownership arrangements Section 70(4)
Shared ownership trust Section 70(6)
Social housing Section 68
Subsidiary Section 271
Tenant Section 275
Working day Section 275
277Consequential amendments