New
Clause
48
Removal
or suspension following
inquiry
‘(1) This section
applies if as a result of an inquiry under section 183 or an audit
under section 186 the regulator is
satisfied—
(a) that a
non-profit registered provider has failed to meet a standard under
section 173 or 174, or
(b) that
the affairs of a non-profit registered provider have been
mismanaged.
(2) The regulator
may by order remove any officer, employee or agent of the registered
provider who it thinks has contributed to the failure or
mismanagement.
(3) Pending a
decision whether to remove an officer, employee or agent, the regulator
may by order suspend the person for a specified period of up to 6
months.
(4) The regulator may
remove or suspend an officer, employee or agent of a registered charity
only if the charity has received public
assistance.
(5) Before making
an order the regulator must take all reasonable steps to give at least
14 days’ notice
to—
(a) the person,
and
(b) the registered
provider.
(6) The regulator
shall notify the Charity Commission if it removes or suspends an
officer, employee or agent of a registered
charity.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
49
Suspension
under section (suspension during inquiry) or (removal or suspension
following inquiry):
supplemental
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
50
Appeal
against removal or
suspension
‘A person removed
or suspended under section 231, (suspension during inquiry) or (removal
or suspension following inquiry) may appeal to the High
Court.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
51
Disqualification
of removed person
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
52
Register
of disqualified persons
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
53
Acting
while disqualified:
offence
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
54
Acting
while disqualified: other
consequences
‘(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.
(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
55
Restrictions
on dealings during
inquiry
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
56
Restrictions
on dealings following
inquiry
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
New
Clause
57
Restrictions
on dealings:
supplemental
‘(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.’.—[Mr.
Wright.]
Brought
up, read the First and Second time, and added to the
Bill.
Alistair
Burt:
On a point of order, Mr. Benton. I shall
not be here on Thursday, so before we reach the conclusion of the Bill
I wish to thank you and Mr. Gale for your chairmanship. I
know that my hon. Friend the Member for Welwyn Hatfield will continue
things on Thursday. I appreciate the work of the Minister, the Whip on
duty and such able colleagues who have
handled the Bill. As I shall not be speaking from the Front Bench for a
little while, I hoped that you would not mind my saying thank you,
Mr.
Benton.
Mr.
Wright:
Further to that point of order, Mr.
Benton. May I just put on record that I think I speak for the Labour
Benches when I say what a pleasure it has been to work with the hon.
Member for North-East Bedfordshire. He is a true gentleman of the
finest order, and, as I have said, his contribution to the
Conservatives’ communities and local government team has been a
pleasure to see. It will be diminished as a result of his absence. I
shall miss him, not just because he makes me look tall but because he
is a real talent in the House and raises its
average.
Further
consideration adjourned.—[Liz
Blackman.]
Adjourned
accordingly at eleven minutes past Seven o’clock till Thursday
31 January at Nine
o’clock.
| 
