House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

279

House of Commons

Monday 31st March 2008

Report Stage Proceedings

Housing and Regeneration Bill, As Amended

New Clauses

Possession orders relating to certain tenancies

Secretary Hazel Blears

Lynne Jones

Mrs Anne Cryer

Jim Dobbin

Added  NC11

To move the following Clause:—

‘Schedule (Possession orders relating to certain tenancies) (which makes

provision about possession orders and their effect on secure tenancies, assured

tenancies, introductory tenancies and demoted tenancies including provision

about the status of existing occupiers) has effect.’.

Shared ownership leases: protection for certain leases

Secretary Hazel Blears

Added  NC12

To move the following Clause:—

‘(1)
After paragraph 3 of Schedule 4A to the Leasehold Reform Act 1967 (c. 88)

(exclusion from enfranchisement for certain shared ownership leases granted by

housing associations) insert—

“3A(1)
A lease which does not fall within paragraph 3 is excluded from the

operation of this Part of this Act if the lease—

(a)
meets the conditions mentioned in sub-paragraph (2);

(b)
meets any other prescribed conditions; and

(c)
does not fall within any prescribed exemptions.

      (2)
The conditions referred to in sub-paragraph (1)(a) are that the lease—

Report Stage Proceedings: 31st March 2008
280

Housing and Regeneration Bill, continued

(a)
was granted for a term of 99 years or more and is not (and

cannot become) terminable except in pursuance of a provision

for re-entry or forfeiture;

(b)
was granted at a premium, calculated by reference to the value

of the house or the cost of providing it, of not less than 25 per

cent, or such other percentage as may be prescribed, of the

figure by reference to which it was calculated;

(c)
provides for the tenant to acquire additional shares in the

house on terms specified in the lease and complying with such

requirements as may be prescribed;

(d)
does not restrict the tenant’s powers to mortgage or charge his

interest in the house;

(e)
if it enables the landlord to require payment for outstanding

shares in the house, does so only in such circumstances as may

be prescribed;

(f)
provides for the tenant to acquire the landlord’s interest on

terms specified in the lease and complying with such

requirements as may be prescribed; and

(g)
states the landlord’s opinion that by virtue of this paragraph

the lease is excluded from the operation of this Part of this

Act.

      (3)
In any proceedings the court may, if it considers that it is just and

equitable to do so, treat a lease as meeting the conditions mentioned in

sub-paragraph (2) despite the fact that the condition specified in

paragraph (g) of that sub-paragraph is not met.

Certain leases for the elderly”.

(2)
For the italic heading before paragraph 3 of that Schedule to that Act substitute—

“Certain housing association and other leases”’.

Service charges: provision of information and designated accounts

Secretary Hazel Blears

Added  NC13

To move the following Clause:—

‘Schedule (Service charges: provision of information and designated accounts)

(which relates to the provision of information about service charges and to service

charge funds) has effect.’.

Report Stage Proceedings: 31st March 2008
281

Housing and Regeneration Bill, continued

Duty to give financial assistance in respect of certain disposals

Secretary Hazel Blears

Added  NC14

To move the following Clause:—

‘(1)
The HCA must exercise its powers under section 22 to give financial assistance

by way of grant to a relevant provider of social housing in respect of any discount

given by the provider—

(a)
to a person exercising the right to acquire conferred by section (Right to

acquire), or

(b)
on a disposal of a dwelling in England by the provider to a qualifying

tenant otherwise than in pursuance of the right conferred by that section.

(2)
In subsection (1)(b) “qualifying tenant” means a tenant who was entitled to

exercise the right to acquire conferred by section (Right to acquire) or by section

16 of the Housing Act 1996 (c. 52) in relation to a dwelling of the relevant

provider of social housing other than the dwelling being disposed of by the

provider.

(3)
The amount of the grant given by virtue of subsection (1)(a) to a relevant provider

of social housing for any year is to be the aggregate value of the discounts given

by that provider in that year.

(4)
The amount of the grant given by virtue of subsection (1)(b) to a relevant provider

of social housing must not exceed the amount of the discount to which the tenant

would have been entitled in respect of the other dwelling.

(5)
The HCA must specify—

(a)
the procedure to be followed in relation to applications for a grant by

virtue of this section,

(b)
in the case of a grant by virtue of subsection (1)(b), the method for

calculating, and any other limitations on, the amount of the grant,

(c)
the manner in which, and time or times at which, a grant by virtue of this

section is to be paid,

(d)
any other terms or conditions on which such a grant is given.

(6)
In this section—

“dwelling” has the same meaning as in Part 2,

“registered provider of social housing” includes a person falling within

section (Right to acquire)(3),

“registered social landlord” has the same meaning as in Part 1 of the

Housing Act 1996 (c. 52),

“relevant provider of social housing” means—

(a)
a registered provider of social housing, or

(b)
a registered social landlord,

“tenant” has the same meaning as in Part 2.’.

Companies exempt from audit

Secretary Hazel Blears

Added  nc15

To move the following Clause:—

Report Stage Proceedings: 31st March 2008
282

Housing and Regeneration Bill, continued

‘(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 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 [exempt companies: accountant’s report] 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.’.

Exempt companies: accountant’s report

Secretary Hazel Blears

Added  nc16

To move the following Clause:—

‘(1)
The report required by section [companies exempt from audit] must be prepared

by a person (“the reporting accountant”) who is eligible under section [exempt

companies: reporting accountant].

(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

(b)
where the reporting accountant is a firm, for and on behalf of the firm by

an individual authorised to do so.

(6)
In this section and sections [exempt companies: reporting accountant] and

[application of Companies Act] “firm” has the meaning given by section 1173(1)

of the Companies Act 2006.’.

Exempt companies: reporting accountant

Secretary Hazel Blears

Added  NC17

To move the following Clause:—

Report Stage Proceedings: 31st March 2008
283

Housing and Regeneration Bill, continued

‘(1)
A person is eligible for appointment by a company as a reporting accountant

under section [exempt companies: accountant’s report] 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.

(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—

(a)
the Institute of Chartered Accountants in England and Wales,

(b)
the Institute of Chartered Accountants of Scotland,

(c)
the Institute of Chartered Accountants in Ireland,

(d)
the Association of Chartered Certified Accountants,

(e)
the Association of Authorised Public Accountants,

(f)
the Association of Accounting Technicians,

(g)
the Association of International Accountants,

(h)
the Chartered Institute of Management Accountants, and

(i)
the Institute of Chartered Secretaries and Administrators.

(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—

(a)
England and Wales,

(b)
Northern Ireland, or

(c)
any other country or territory in which a partnership is not a legal

person.’.

Application of Companies Act

Secretary Hazel Blears

Added  nc18

To move the following Clause:—

Report Stage Proceedings: 31st March 2008
284

Housing and Regeneration Bill, continued

‘(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).

(2)
The provisions are—

(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.’.

Exempt companies: extraordinary audit

Secretary Hazel Blears

Added  NC19

To move the following Clause:—

‘(1)
This section applies where, in accordance with section [companies exempt from

audit] a company appoints a reporting accountant to prepare a report in respect of

its accounts for any year.

(2)
The regulator may require the company to—

(a)
cause a qualified auditor to audit its accounts and balance sheet for that

year, and

(b)
send a copy of the report to the regulator by a specified date.

(3)
A requirement may not be imposed before the end of the financial year to which

it relates.

(4)
“Qualified auditor”, in relation to a company, means a person who—

(a)
is eligible for appointment as a statutory auditor of the company under

Part 42 of the Companies Act 2006 (statutory auditors), and

(b)
is not prohibited from acting as statutory auditor of the company by

virtue of section 1214 of that Act (independence requirement).’.

Report Stage Proceedings: 31st March 2008
285

Housing and Regeneration Bill, continued

Interim manager

Secretary Hazel Blears

Added  NC20

To move the following Clause:—

‘(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—

(a)
the end of the moratorium,

(b)
the agreement of proposals under section 146, or

(c)
a date specified in the appointment.

(5)
An interim manager shall have—

(a)
any power specified in the appointment, and

(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).

(6)
But an interim manager may not—

(a)
dispose of land, or

(b)
grant security over land.’.

Right to acquire

Secretary Hazel Blears

Added  NC21

To move the following Clause:—

‘(1)
The tenant of a dwelling in England has a right to acquire the dwelling if—

(a)
the landlord is a registered provider or a registered social landlord,

(b)
the tenancy is within subsection (2),

(c)
the provision of the dwelling was publicly funded,

(d)
the dwelling has remained in the social rented sector ever since that

provision, and

(e)
the tenant satisfies any qualifying conditions applicable under Part V of

the Housing Act 1985 (c. 68) (as it applies by virtue of section [right to

acquire: supplemental]).

(2)
A tenancy is within this subsection if it is—

(a)
an assured tenancy, other than an assured shorthold tenancy or a long

tenancy, or

(b)
a secure tenancy.

(3)
The reference in subsection (1)(a) to a registered provider includes—