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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

 

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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

  

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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

  

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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

  

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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

  

15

 

(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

  

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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

 

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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—

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(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

15

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.

20

(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.

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(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).

10

(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—

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(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

58

 

(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

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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

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original proposals.

144     

Proposals: effect

(1)   

The following are obliged to implement agreed proposals—

(a)   

the regulator,

(b)   

the registered provider,

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(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,

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(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.

 
 

 
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