Housing and Regeneration Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Housing and Regeneration Bill

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
54

134
Disclosure
(1)
This section applies to information that a person has received while acting—
(a)
as auditor of a non-profit registered provider, or
(b)
as a reporting accountant in relation to a non-profit registered provider.
(2)
The person may disclose the information to the regulator for a purpose
5
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
10
which, by virtue of any enactment, has to be prepared in respect of accounts
that are not subject to audit.
Insolvency etc.
135
Non-profit providers only
This group of sections applies only to non-profit registered providers.
15
136
Preparatory steps: notice
A step specified in the Table has effect only if the person specified has given
the regulator notice.

Step
Person to give notice

Any step, of a kind prescribed for the purposes of this
The person taking the step

20

section by the Secretary of State by order, to enforce a

security over land held by a registered provider

Presenting a petition for the winding up of a registered
The petitioner

provider which is—

(a)
a registered company, or

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(b)
an industrial and provident society

Passing a resolution for the winding up of a registered
The registered provider

provider which is—

(a)
a registered company, or

(b)
an industrial and provident society

30

But not the passing of a resolution for winding-up

where the regulator’s consent is required under section

152 or 154

Making an administration application in accordance
The applicant

with paragraph 12 of Schedule B1 to the Insolvency Act

35

1986 in respect of a registered provider which is a

registered company

Appointing an administrator under paragraph 14 or 22
The person making the

of that Schedule in respect of a registered provider
appointment

which is a registered company

40

Filing with the court a copy of a notice of intention to
The person filing the notice

appoint a person under either of those paragraphs in

respect of a registered provider which is a registered

company

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
55

137
Moratorium
(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
5
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 138(2)).

Step
Person

Any step, of a kind prescribed for the purposes of this
The person taking the step

10

section by the Secretary of State by order, to enforce a

security over land held by a registered provider

The making of an order for winding up a registered
The petitioner

provider which is—

(a)
a registered company, or

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(b)
an industrial and provident society

The passing a resolution for the winding up of a
The registered provider

registered provider which is—

(a)
a registered company, or

(b)
an industrial and provident society

20

The making of an administration order in accordance
The person who applied for the

with paragraph 13 of Schedule B1 to the Insolvency Act
order

1986 in respect of a registered provider which is a

registered company

The appointment of an administrator under paragraph
The person making the

25

14 or 22 of that Schedule in respect of a registered
appointment

provider which is a registered company

138
Duration of moratorium
(1)
The moratorium begins when the step specified in section 137 is taken.
(2)
The moratorium ends (unless extended or cancelled) with the period of 28 days
30
beginning with the day on which the regulator receives notice under section
137(2).
(3)
During a moratorium the regulator may extend it (or further extend it) for a
specified period, with the consent of each secured creditor of the registered
provider.
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(4)
If the regulator extends a moratorium it shall notify—
(a)
the registered provider, and
(b)
any liquidator, administrator, administrative receiver or receiver
appointed in respect of the registered provider or its land.
(5)
During a moratorium the regulator may cancel it if satisfied that it is
40
unnecessary to make proposals under section 142.
(6)
Before cancelling a moratorium the regulator must consult the person who
took the step that triggered it.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
56

(7)
When a moratorium ends the regulator shall give notice, and (except in the case
of cancellation) an explanation of section 139, to—
(a)
the registered provider, and
(b)
its secured creditors.
(8)
Taking a further step during a moratorium does not—
5
(a)
start a new moratorium, or
(b)
alter the existing moratorium’s duration.
139
Further moratorium
(1)
This section applies if—
(a)
a moratorium in respect of a registered provider ends otherwise than
10
by cancellation, and
(b)
a further step specified in section 137 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
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each secured creditor of the registered provider consents.
(4)
If the regulator imposes a new moratorium it shall notify—
(a)
the registered provider, and
(b)
any liquidator, administrator, administrative receiver or receiver
appointed in respect of the registered provider or any of its land.
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(5)
This group of sections applies to a further moratorium as to a first moratorium
(except for section 138(2)).
140
Effect of moratorium
(1)
During a moratorium the registered provider’s land may be disposed of only
with the regulator’s prior consent.
25
(2)
Section 141 sets out exceptions to subsection (1).
(3)
Consent—
(a)
may be given before the moratorium begins, and
(b)
may be subject to conditions.
(4)
This section does not prevent a liquidator from disclaiming land as onerous
30
property during a moratorium.
(5)
In this section “land” includes a present or future interest in rent or other
receipts arising from land.
141
Exempted disposals
(1)
The regulator’s consent is not required under section 140 for the following
35
exceptions.
(2)
Exception 1 is a letting under—
(a)
an assured tenancy, or
(b)
an assured agricultural occupancy.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
57

(3)
Exception 2 is a letting under what would be an assured tenancy or an assured
agricultural occupancy but for any of paragraphs 4 to 8 and 12(1)(h) of
Schedule 1 to the Housing Act 1988 (c. 50) (tenancies which cannot be assured
tenancies).
(4)
Exception 3 is a letting under a secure tenancy.
5
(5)
Exception 4 is a letting under what would be a secure tenancy but for any of
paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (c. 68) (tenancies
which are not secure tenancies).
(6)
Exception 5 is a disposal to which section 81 or 133 of the Housing Act 1988
applies (disposals requiring Secretary of State’s consent).
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(7)
Exception 6 is a disposal under Part V of the Housing Act 1985 (right to buy).
(8)
Exception 7 is a disposal under the right conferred by section 16 of the Housing
Act 1996 (c. 52) (tenant’s right to acquire social housing).
142
Proposals
(1)
During a moratorium the regulator may make proposals about the future
15
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
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(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 145 to implement all or part of the proposals.
(4)
Proposals may not include anything which would result in—
25
(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).
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(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.
143
Proposals: procedure
35
(1)
Before making proposals the regulator shall consult—
(a)
the registered provider,
(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
40
(d)
if the registered provider is a registered charity, the Charity
Commission.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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(2)
The regulator shall send a copy of proposals to—
(a)
the registered provider,
(b)
its secured creditors, and
(c)
any liquidator, administrator, administrative receiver or receiver
appointed in respect of the registered provider or any of its land.
5
(3)
The regulator shall also make arrangements for bringing proposals to the
attention of—
(a)
the registered provider’s members and officers,
(b)
its tenants, and
(c)
its unsecured creditors.
10
(4)
If each secured creditor of a registered provider agrees to proposals by notice
to the regulator, the proposals have effect.
(5)
Proposals may be agreed with modifications to which each secured creditor
consents by notice to the regulator.
(6)
The regulator shall send a copy of agreed proposals to—
15
(a)
the registered provider,
(b)
its secured creditors,
(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
20
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—
25
(a)
the registered provider’s members and officers,
(b)
its tenants, and
(c)
its unsecured creditors.
(8)
Proposals may be amended by agreement between the secured creditors and
the regulator; and this section and section 142 apply to an amendment as to the
30
original proposals.
144
Proposals: effect
(1)
The following are obliged to implement agreed proposals—
(a)
the regulator,
(b)
the registered provider,
35
(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,
40
(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.