House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Public Bill Committee Proceedings: 29th January 2008
94

Housing and Regeneration Bill, continued

following inquiry): supplemental

Mr Iain Wright

Added  NC49

To move the following Clause:—

‘(1)
This section applies where the regulator suspends an officer, employee or agent

of a registered provider under section (suspension during inquiry) or (removal or

suspension following inquiry).

(2)
The regulator may give directions to the registered provider about—

(a)
the performance of the suspended person’s functions, and

(b)
any other matter arising from the suspension.

(3)
The regulator may appoint a person to perform the suspended person’s

functions.’.

Appeal against removal or suspension

Mr Iain Wright

Added  NC50

To move the following Clause:—

‘A person removed or suspended under section 231, (suspension during inquiry)

or (removal or suspension following inquiry) may appeal to the High Court.’.

Disqualification of removed person

Mr Iain Wright

Added  NC51

To move the following Clause:—

‘(1)
A person is disqualified from acting as an officer of a registered provider if the

person has been removed under—

(a)
section (removal or suspension following inquiry), or

(b)
paragraph 24(2)(a) of Schedule 1 to the Housing Act 1996 (c. 52), section

30(1)(a) of the Housing Associations Act 1985 (c. 69) or section 20(1)(a)

of the Housing Act 1974 (c. 44) (other similar provisions).

(2)
The regulator may waive a disqualification either generally or in relation to a

particular registered provider or class of registered providers.

(3)
A waiver may be granted only on an application by the disqualified person.

(4)
The regulator shall notify a person whose disqualification is waived.

(5)
If a disqualified person acts as an officer of a registered provider, the person’s acts

are not invalid by reason only of the disqualification.’.

Public Bill Committee Proceedings: 29th January 2008
95

Housing and Regeneration Bill, continued

Register of disqualified persons

Mr Iain Wright

Added  NC52

To move the following Clause:—

‘(1)
The regulator shall maintain a register of persons disqualified under section

(disqualification of removed person).

(2)
The register must show details of any waivers.

(3)
The regulator shall make the register available for inspection by the public.’.

Acting while disqualified: offence

Mr Iain Wright

Added  NC53

To move the following Clause:—

‘(1)
It is an offence for a person to act as an officer of a registered provider in respect

of which the person is disqualified under section (disqualification of removed

person).

(2)
A person guilty of an offence is liable—

(a)
on summary conviction, to imprisonment for a term not exceeding

12 months or a fine not exceeding the statutory maximum or both;

(b)
on conviction on indictment, to imprisonment for a term not exceeding

two years or a fine or both.

(3)
Proceedings for an offence may be brought only by or with the consent of—

(a)
the regulator, or

(b)
the Director of Public Prosecutions.

(4)
In relation to an offence committed before the commencement of section 282 of

the Criminal Justice Act 2003 (c. 44) (short sentences) the reference in subsection

(2)(a) to 12 months shall have effect as if it were a reference to 6 months.’.

Acting while disqualified: other consequences

Mr Iain Wright

Added  NC54

To move the following Clause:—

‘(1)
This section applies where the regulator is satisfied that a person—

(a)
has acted as an officer of a registered provider in respect of which the

person is disqualified under section (disqualification of removed person),

and

(b)
in doing so, has received payments or other benefits from the registered

provider.

Public Bill Committee Proceedings: 29th January 2008
96

Housing and Regeneration Bill, continued

(2)
The regulator may require the person to repay the sum or, as the case may be, a

specified amount representing the whole or part of the value of the benefit.

(3)
If a person fails to comply with a requirement the registered provider may recover

the sum or specified amount as a debt.’.

Restrictions on dealings during inquiry

Mr Iain Wright

Added  NC55

To move the following Clause:—

‘(1)
The regulator may make an order under this section if—

(a)
an inquiry under section 183 is in progress in respect of a non-profit

registered provider, and

(b)
either of the following cases applies.

(2)
Case 1 applies if the regulator has reasonable grounds for believing—

(a)
that the registered provider has failed to meet a standard under section

173 or 174 or that its affairs have been mismanaged, and

(b)
that the interests of tenants of the registered provider, or its assets, require

protection.

(3)
Case 2 applies if as a result of an inquirer’s interim report under section 184 the

regulator is satisfied—

(a)
that the registered provider has failed to meet a standard under section

173 or 174, or

(b)
that its affairs have been mismanaged.

(4)
The regulator may order a bank or other person who holds money or securities on

behalf of the registered provider not to part with the money or securities without

the regulator’s consent.

(5)
The regulator may make an order restricting—

(a)
the transactions that may be entered into by the registered provider, or

(b)
the nature and amounts of payments that may be made by it.

(6)
An order under subsection (5) may in particular provide that transactions may not

be entered into or payments made without the regulator’s consent.

(7)
The regulator may make an order in respect of a registered provider that is a

registered charity only if it has received public assistance.

(8)
An order ceases to have effect at the end of the period of 6 months beginning with

the day on which the inquirer’s final report under section 184 is made.

(9)
But the regulator—

(a)
may revoke the order before that time;

(b)
may by order extend it for a specified period of up to 6 months.’.

Public Bill Committee Proceedings: 29th January 2008
97

Housing and Regeneration Bill, continued

Restrictions on dealings following inquiry

Mr Iain Wright

Added  NC56

To move the following Clause:—

‘(1)
This section applies if as a result of an inquiry under section 183 or an audit under

section 186 the regulator is satisfied that—

(a)
a non-profit registered provider has failed to meet a standard under

section 173 or 174, or

(b)
the affairs of a non-profit registered provider have been mismanaged.

(2)
The regulator may order a bank or other person who holds money or securities on

behalf of the registered provider not to part with the money or securities without

the regulator’s consent.

(3)
The regulator may make an order restricting—

(a)
the transactions that may be entered into by the registered provider, or

(b)
the nature and amounts of payments that may be made by it.

(4)
An order under subsection (3) may in particular provide that transactions may not

be entered into or payments made without the regulator’s consent.

(5)
The regulator may make an order in respect of a registered provider that is a

registered charity only if it has received public assistance.

(6)
An order under this section has effect until revoked by the regulator.’.

Restrictions on dealings: supplemental

Mr Iain Wright

Added  NC57

To move the following Clause:—

‘(1)
Before making an order under section (restrictions on dealings during inquiry) or

(restrictions on dealings following inquiry) the regulator must take all reasonable

steps to give notice to—

(a)
the registered provider, and

(b)
in the case of a order under section (restrictions on dealings during

inquiry)(4) or (restrictions on dealings following inquiry)(2), the person

to whom the order is directed.

(2)
Contravention of an order under section (restrictions on dealings during

inquiry)(4) or (restrictions on dealings following inquiry)(2) is an offence.

(3)
A person guilty of an offence is liable on summary conviction to a fine not

exceeding level 5 on the standard scale.

(4)
Proceedings for an offence may be brought only by or with the consent of—

(a)
the regulator, or

(b)
the Director of Public Prosecutions.’.

[Adjourned till Thursday at 9.00 a.m.