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
59

144
Effect of moratorium
(1)
During a moratorium the registered provider’s land may be disposed of only
with the regulator’s prior consent (and a purported disposal without consent
is void).
(2)
Section 145 sets out exceptions to subsection (1).
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(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
property during a moratorium.
10
(5)
In this section “land” includes a present or future interest in rent or other
receipts arising from land.
145
Exempted disposals
(1)
The regulator’s consent is not required under section 144 for the following
exceptions.
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(2)
Exception 1 is a letting under—
(a)
an assured tenancy, or
(b)
an assured agricultural occupancy.
(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, 12(1)(h) and 12ZA to
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12B 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)
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
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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).
(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
30
Act 1996 (c. 52) (tenant’s right to acquire social housing).
146
Proposals
(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.
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(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.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
60

(3)
Proposals may provide for the appointment of a manager in accordance with
section 149 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
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(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
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(b)
may provide for the disposal of accommodation only to another charity
whose objects the regulator thinks are similar to those of C1.
147
Proposals: procedure
(1)
Before making proposals the regulator shall consult—
(a)
the registered provider,
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(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.
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(2)
The regulator shall send a copy of proposals to—
(a)
the registered provider and its officers,
(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.
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(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.
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(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 if—
(a)
each secured creditor consents by notice to the regulator, and
(b)
the regulator consents.
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(6)
The regulator shall send a copy of agreed proposals to—
(a)
the registered provider and its officers,
(b)
its secured creditors,
(c)
any liquidator, administrator, administrative receiver or receiver
appointed in respect of the registered provider or any of its land,
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(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.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
61

(7)
The regulator shall also make arrangements for bringing agreed proposals to
the attention of—
(a)
the registered provider’s members,
(b)
its tenants, and
(c)
its unsecured creditors.
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(8)
Proposals may be amended by agreement between the secured creditors and
the regulator; and this section and section 146 apply to an amendment as to the
original proposals.
148
Proposals: effect
(1)
The following are obliged to implement agreed proposals—
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(a)
the regulator,
(b)
the registered provider,
(c)
its creditors, and
(d)
any liquidator, administrator, administrative receiver or receiver
appointed in respect of the registered provider or any of its land.
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(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.
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(3)
Subsection (2) does not require or permit a breach of a fiduciary or other duty.
149
Manager: 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
25
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).
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(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).
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150
Manager: 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
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
62

(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
5
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;
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(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;
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(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
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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;
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(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.
151
Manager of industrial and provident society: extra powers
(1)
This section applies to a manager appointed to implement proposals relating
30
to an industrial and provident society.
(2)
The appointment may confer on the manager power to make and execute on
behalf of the society an instrument transferring its engagements.
(3)
An instrument transferring engagements has the same effect as a transfer of
engagements under section 51 and 52 of the Industrial and Provident Societies
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Act 1965 (c. 12) (transfer by special resolution to another society or company).
(4)
A copy of the instrument—
(a)
shall be sent to and registered by the Financial Services Authority, and
(b)
takes effect when registered.
(5)
The copy must be sent for registration during the period of 14 days beginning
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with the date of execution; but a copy registered after that period is valid.