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Regulation of Registered Social Landlords( Wales) Enactments 2018

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Regulation of Registered Social Landlords( Wales) Enactments 2018

2018 anaw 4

An Act of the National Assembly for Wales to make provision about the regulation of registered social landlords by the Welsh Ministers and original authorities.
13 June 2018)

Having been passed by the National Assembly for Wales and having entered the assent of Her Majesty, it’s legislated as follows

1. Overview of this Act

1) This Act makes provision in respect of registered social landlords by amending being Acts, including in particular the Housing Act 1996(c. 52).
2) Sections 3 to 5 make provision about conditions to be complied with when certain changes are made in respect of the indigenous arrangements or structure of a registered social landlord.
3) Sections 6 to 9 make provision about the Welsh Ministers’ power to intermediate in respect of the officers or operation of a registered social landlord.
4) Section 10 makes provision about the Welsh Ministers’ powers in respect of inquiries into registered social landlords.
5) Sections 11 and 12 make provision about enforcement notices and penalties.
6) Sections 13 to 15 make provision about disposals of land by registered social landlords.
7) Section 16 introduces Schedule 1, making provision limiting original authority influence on the boards of registered social landlords.
8) Sections 17 to 20 contain general vittles applicable to the Act, including provision about the power to make consequential emendations, and the coming into force of the Act.
2Meaning of the “ 1996 Act ”

References in this Act to the “ 1996 Act ” are to the Housing Act 1996(c. 52).

3. Change of rules or papers

1) Schedule 1 to the 1996 Act is amended as follows.
2) In paragraph 9( change of rules of registered society), forsub-paragraphs( 2) to( 5) cover —
“( 2) The registered society must notify the Welsh Ministers of any correction to its rules( including a change in its listed office or name).
3) The reference insub-paragraph( 2) to an correction to the rules of a society is to be interpreted in agreement with section 149 of the united and Community Benefit Societies Act 2014(c. 14). ”
3) In paragraph 11( change of company papers), forsub-paragraphs( 2) to( 4) cover —
“( 2) The company must notify the Welsh Ministers of any change to —
a) its name;
b) the address of its listed office;
c) its papers of association. ”

4. Amalgamation and other structural changes

1) Schedule 1 to the 1996 Act is amended as follows.
2) In paragraph 12( admixture and dissolution), insub-paragraph( 2) —
( a) for “ The Financial Conduct Authority shall not register a special resolution which is ” cover “ The society must notify the Welsh Ministers of a special resolution which it has ”, and
( b) forget the words from “ unless ” to the end of thesub-paragraph.
3) In paragraph 12, aftersub-paragraph( 2) insert —
“( 2A) On giving announcement undersub-paragraph( 2), a society must also give the Welsh Ministers with a statement about the discussion carried out by the society with its tenants before passing the resolution to which the announcement relates.
2B) But the demand insub-paragraph( 2A) doesn’t apply in respect of a resolution passed for the purposes of paragraph( a) of section 112( 1) of the 2014 Act( conversion of society into a company). ”
4) In paragraph 12, insub-paragraph( 4), for the words from “ the resolution has no effect ” to the end of thesub-paragraph cover “ the society must notify the Welsh Ministers of the resolution. ”
5) In paragraph 12, forsub-paragraph( 5) cover —
“( 5) If an instrument of dissolution is approved in agreement with section 119( 3) of the 2014 Act( dissolution of society by instrument), the society to which the instrument relates must notify the Welsh Ministers of the blessing. ”
6) In paragraph 12, forgetsub-paragraph( 6).
7) In paragraph 13( arrangement, reconstruction,etc.), forsub-paragraphs( 2) to( 5) cover —
“( 2) If a court makes an order under section 899 of the Companies Act 2006( permission of concession or arrangement with creditors or members) in relation to the company, the company must notify the Welsh Ministers of the order.
3) If a court makes an order under section 900 of the Companies Act 2006( powers of court to grease reconstruction or admixture) in relation to the company, the company must notify the Welsh Ministers of the order.
4) If the company passes a resolution under section 115 of the united and Community Benefit Societies Act 2014( conversion of company into registered society), the company must notify the Welsh Ministers of the resolution.
5) If a voluntary arrangement is proposed under Part 1 of the Insolvency Act 1986 in relation to a company, the company must notify the Welsh Ministers of the offer. ”
8) In paragraph 13, insub-paragraph( 6), for the words from “ the resolution has no effect ” to the end of thesub-paragraph cover “ the company must notify the Welsh Ministers of the resolution. ”
9) In paragraph 13, forgetsub-paragraph( 7).
10) forget paragraph 14( Welsh Ministers’ power to supplicate for winding up).
5Directions about announcements to be given to Welsh Ministers

In Schedule 1 to the 1996 Act, after paragraph 13 insert —
“ Directions to registered social landlords about announcements
13A( 1) The Welsh Ministers may give directions to registered social landlords about —
a) the delivery, form and content of a announcement given to the Welsh Ministers under paragraph 9, 11, 12 or 13;
( b) the deadline for giving a announcement appertained to in paragraph( a).
2) The Welsh Ministers may give directions to registered social landlords allocating with a demand to give a announcement appertained to insub-paragraph( 1)( a).
3) A direction under this paragraph may be given generally in respect of all registered social landlords, or in respect of a particular registered social landlord or a particular type of registered social landlord, and may make provision about announcements generally, or about particular announcements or types of announcement.
4) A direction may vary or drop a former direction under this paragraph.
5) A registered social landlord must misbehave with a direction under this paragraph. ”
6Removal or appointment of officer of registered social landlord

1) Schedule 1 to the 1996 Act is amended as follows.
2) In paragraph 4( Welsh Ministers’ power to remove officer), insub-paragraph( 2)( g), for “ proper operation of the registered social landlord’s affairs ” substitute “ registered social landlord’s compliance with a demand assessed by or under an enactment ”.
3) In paragraph 6( power to appoint officer of registered charity), insub-paragraph( 1)( c), for “ for the proper operation of the charity’s affairs to have an fresh officer ” cover “ to have an fresh officer in order to insure that the charity complies with a demand assessed by or under an enactment ”.
4) In paragraph 7( power to appoint officer of company), insub-paragraph( 1)( c), for “ for the proper operation of the company’s affairs to have an fresh officer ” cover “ to have an fresh officer in order to insure that the company complies with a demand assessed by or under an enactment ”.
5) In paragraph 8( power to appoint officer of registered society), insub-paragraph( 1)( c), for “ for the proper operation of the society’s affairs to have an fresh officer ” cover “ to have an fresh officer in order to insure that the society complies with a demand assessed by or under an enactment ”.

7. Tender or transfer of registered social landlord’s operation functions

1) Schedule 1 to the 1996 Act is amended as follows.
2) In paragraph 15B( operation tender), insub-paragraph( 1), for the words from “ that ” to the end of thesub-paragraph cover “ that a registered social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
3) In paragraph 15B, insub-paragraph( 2), for “ where the misconduct or mismanagement ” cover “ if the failure ”.
4) In paragraph 15D( operation transfer), insub-paragraph( 1), for the words from “ that ” to the end of thesub-paragraph cover “ that a registered social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
5) In paragraph 15D, forsub-paragraph( 2) cover —
“( 2) But this paragraph doesn’t apply if the failure relates only to the registered social landlord’s provision of casing in England. ”

8. Appointment of director of registered social landlord

1) In Schedule 1 to the 1996 Act, paragraph 15F( appointment of director) is amended as follows.
2) Insub-paragraph( 1), for the words from “ that ” to the end of thesub-paragraph cover “ that a registered social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
3) Insub-paragraph( 2), for “ where the misconduct or mismanagement ” cover “ if the failure ”.

9. Amalgamation effected by Welsh Ministers

1) In Schedule 1 to the 1996 Act, paragraph 15H( admixture) is amended as follows.
2) Insub-paragraph( 1), for the words from “ that ” to the end of thesub-paragraph cover “ that a registered social landlord which is a registered society has failed to misbehave with a demand assessed by or under an enactment. ”
3) Forsub-paragraph( 2) cover —
“( 2) But this paragraph doesn’t apply if the failure relates only to the registered social landlord’s provision of casing in England. ”

10. Inquiries and reports

1) Schedule 1 to the 1996 Act is amended as follows.
2) In paragraph 20( Welsh Ministers’ power to direct inquiry), insub-paragraph( 1), for “ there may have been misconduct or mismanagement ” cover “ the listed social landlord may have failed to misbehave with a demand assessed by or under an enactment. ”
3) In paragraph 23( powers exercisable on interim base), insub-paragraph( 1) —
( a) for paragraph( a)( i) cover —
“( i) that a registered social landlord has failed to misbehave with a demand assessed by or under an enactment, and ”; and
( b) in paragraph( b), for the words from “ there ” to the end of that paragraph cover “ a listed social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
4) In paragraph 23, insub-paragraph( 2)( a), for “ misconduct or mismanagement ” cover “ failure ”.
5) In paragraph 24( powers exercisable as result of final report or inspection), insub-paragraph( 1), for the words from “ there ” to “ landlord ” cover “ a listed social landlord has failed to misbehave with a demand assessed by or under an enactment ”.
6) In paragraph 24, insub-paragraph( 2)( a), for “ misconduct or mismanagement ” cover “ failure ”.
7) In paragraph 27( power to direct transfer of land), forsub-paragraph( 1)( a) cover —
“( a) that it has failed to misbehave with a demand assessed by or under an enactment, and ”.

Reflections

11. Enforcement notices

( 1) Section 50C of the 1996 Act( enforcement notices) is amended as follows.
2) For subsection( 3) cover —
“( 3) Case 2 is where the registered social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
3) After subsection( 10) insert —
“( 10A) But Case 2 isn’t to be treated as applying if any of the other cases listed in this section applies. ”

12. Requirement to pay a penalty

1) Section 50H of the 1996 Act( cases in which penalty may be assessed) is amended as follows.
2) For subsection( 3) cover —
“( 3) Case 2 is where the registered social landlord has failed to misbehave with a demand assessed by or under an enactment. ”
3) After subsection( 6) insert —
“( 6A) But Case 2 isn’t to be treated as applying if any of the other cases listed in this section applies. ”

Reflections

13. Disposal of land concurrence

1) In the Housing Act 1985(c. 68), in section 171D( posterior dealings qualifying dwelling house), in subsection( 2ZA), after “ casing ” insert “ or by a registered social landlord ”.
2) In the Housing Act 1988(c. 50), forget section 81( concurrence needed for certain posterior disposals).
3) Section 133 of the Housing Act 1988( warrants needed for posterior disposals) is amended as follows.
4) In subsection( 1), forget “ as defined in section 81( 8) above ”.
5) In subsection( 1B), after “ casing ” insert “ or to a body registered as a registered social landlord under Chapter 1 of Part 1 of the Housing Act 1996. ”
6) In subsection( 7), forget “ 9 or ”.
7) After subsection( 10), insert —
“( 11) In this section “ pure disposal ” means —
a) the disposal of a lodging- house to a person having the right to buy it under Part 5 of the Housing Act 1985( whether the disposal is in fact made under that Part or else);
b) a mandatory disposal, within the meaning of Part 5 of the Housing Act 1985;
( c) the disposal of an easement or rentcharge;
d) the disposal of an interest by way of security for a loan;
e) the entitlement of a secure residency or what would be a secure residency but for any of paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985;
f) the entitlement of an assured residency or an assured agrarian residency, within the meaning of Part 1 of this Act, or what would be such a residency or residency but for any of paragraphs 4 to 8 of Schedule 1 to this Act;
( g) the transfer of an interest held on trust for any person where the disposal is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee. ”

14. Disposal of land announcement

In the 1996 Act, for section 9 cover —

“ 9Notification to Welsh Ministers of disposal of land

1) If a registered social landlord disposes of land under section 8, the landlord must notify the Welsh Ministers.
2) For the purposes of this section disposing of land means dealing it, leasing it, trothing it, making it subject to a charge, or disposing of it in any other way.
3) The Welsh Ministers may give directions to registered social landlords about —
a) the delivery, form and content of announcement under this section;
( b) the deadline for giving announcement under this section.
4) The Welsh Ministers may give directions to registered social landlords allocating with a demand to give announcement under this section.
5) A direction under this section may be given generally in respect of all registered social landlords, or in respect of a particular registered social landlord or a particular type of registered social landlord, and may make provision about announcements generally, or about particular announcements or types of announcement.
6) A direction may vary or drop a former direction under this section.
7) A registered social landlord must misbehave with a direction under this section. ”

15. Disposal proceeds fund

In the 1996 Act, forget —
( a) section 24( disposal proceeds fund);
b) section 25( operation or appropriation of disposal proceeds);
c) section 26( disposal proceeds power to bear information).
16Limit on original authority board class and voting rights

Schedule 1 to this Act inserts a new Chapter 1A into Part 1 of the 1996 Act( social rented sector regulated by the Welsh Ministers), limiting original authorities’ powers in respect of the class of the board of a registered social landlord and their voting rights.

18. Power to make farther consequential emendationsetc.

1) The Welsh Ministers may by regulations make similar provision amending, repealing or repealing any enactment as they consider applicable in consequence of any provision made by or under this Act, or for the purpose of giving full effect to any provision made by or under this Act.
2) In this section, “ enactment ” means a provision contained in any of the following, whenever legislated or made —
( a) an Act of Parliament;
b) a Measure or Act of the National Assembly for Wales;
c) any instrument made under an Act within paragraph( a), or an Act or Measure within paragraph( b).
3) Regulations under this section —
a) are to be made by statutory instrument;
b) may include transitional, temporary or saving provision.
4) A statutory instrument containing regulations under this section which amend or repeal any provision of an Act of Parliament, or a Measure or Act of the National Assembly for Wales, may not be made unless a draft of the instrument has been laid ahead, and approved by resolution of, the National Assembly for Wales.
5) Any other instrument containing regulations under this section is subject to dissolution in performance of a resolution of the National Assembly for Wales.

19. Coming into force

1) This section and section 20 come into force on the day after the day on which this Act receives Royal Assent.
2) The other vittles of this Act come into force on similar day as the Welsh Ministers may appoint by order made by statutory instrument.
3) An order under subsection( 2) may —
a) appoint different days for different purposes;
b) make transitional, temporary or saving provision in connection with the coming into force of a provision in this Act.

20. Short title

The short title of this Act is the Regulation of Registered Social Landlords( Wales) Act 2018.

Chapter 1

ABOARD Class AND VOTING RIGHTS

General

7 A Meaning of crucial terms used in this Chapter

1) References in this Chapter to the board of a registered social landlord are —
a) in the case of a registered social landlord that’s a company( including a company that’s a registered charity), references to the company’s board of directors;
( b) in the case of a registered social landlord that’s a registered charity( but isn’t a company), references to the charity’s board of trustees;
( c) in the case of a registered social landlord that’s a registered society, references to the society’s commission.
2) References in this Chapter to board members, in relation to a registered social landlord, are to members of the registered social landlord’s board.
3) References in this Chapter to original authority nominees, in relation to the board of a registered social landlord, are to persons appointed to the board, or nominated for appointment to the board, by a original authority.

Limit on original authority nominees to board

7B Limit on original authority movables to board

1) No appointment within subsection( 2) may be made to the board of a registered social landlord on or after the day on which this section comes into force.
2) An appointment is within this subsection if its effect, but for this section, would be that further than 24 per cent of the board members of the registered social landlord would be original authority nominees.
3) To the extent that any provision in the constitution or rules of a registered social landlord would, but for this subsection, conflict with subsection( 1) or( 2), that provision is to be treated as having no effect.

7C Removal of original authority nominees to misbehave with 24 per cent limit

1) This section applies in respect of a registered social landlord if, on the inception date, further than 24 per cent of the board members of the registered social landlord are original authority nominees.
2) The registered social landlord must remove original authority nominees from the board to the extent it’s necessary to do so to misbehave with the 24 per cent limit.
3) The registered social landlord must misbehave with the duty in subsection( 2) before the expiry of the 4 month period but, subject to subsection( 5), the landlord may not remove an nominee until after the 2 month period expires.
4) A original authority may, before the expiry of the 2 month period, give notice to the registered social landlord specifying original authority nominees appointed or nominated by that authority who are to be removed from the board in order to misbehave with the 24 per cent limit.
5) Where notice has been given in agreement with subsection( 4) the registered social landlord, in complying with subsection( 2), must remove the specified original authority nominees from the board( and may do so before the expiry of the 2 month period).
6) Where notice has not been given in agreement with subsection( 4) the registered social landlord, in complying with subsection( 2), must elect the original authority nominees who are to be removed from the board.
7) In this section —

“ inception date ” means the day on which this section comes into force;

“ 2 month period ” means the period of 2 months beginning with the inception date;

“ 4 month period ” means the period of 4 months beginning with the inception date;

references to complying with the 24 per cent limit, in relation to the board of a registered social landlord, are to icing that no further than 24 per cent of the members of the board of the registered social landlord are original authority nominees.

7DProcedure for selection by registered social landlord of original authority nominees for junking

1) The selection under section 7C( 6) of a original authority nominee for junking from the board of a registered social landlord is to be effected by a maturity vote of the votes cast by board members who aren’t original authority nominees.
2) To the extent that any provision in the constitution or rules of the landlord would, but for this subsection, conflict with subsection( 1), that provision is to be treated as having no effect for the purposes of section 7C.

Quorum and voting rights of board members

7E Board quorum no demand for original authority nominee

1) To the extent that any provision of the constitution or rules of a registered social landlord is within subsection( 2), it’s to be treated as having no effect.
2) Provision is within this subsection if, but for this section, it would bear the presence of one or further original authority nominees in order for a meeting of the board of the registered social landlord to be quorate.

7F Board judgments 75 per cent threshold

1) To the extent that any provision in the constitution or rules of a registered social landlord is within subsection( 2), subsection( 3) applies in respect of that provision.
2) Provision is within this section if, but for this section, it would permit a resolution of the board of the registered social landlord to be passed only if further than 75 per cent of the votes cast by the board are in favour of the resolution.
3) The provision is to be treated as taking only 75 per cent of the votes cast by the board to be in favour of the resolution.

concurrence to indigenous change

7G Constitutional changes no demand for original authority concurrence and no power of proscription

1) To the extent that any provision of the constitution or rules of a registered social landlord is within subsection( 2), it’s to be treated as having no effect.
2) Provision is within this subsection if, but for this section, it would —
( a) bear the concurrence of a original authority, or of a original authority nominee, to a change to the constitution or rules of the registered social landlord, or
( b) confer on a original authority, or a original authority nominee, power to blackball a change within paragraph( a).

Voting rights of members of registered social landlord

7H Voting rights of original authorities

1) This section applies if a original authority is a member of a registered social landlord.
2) To the extent that any provision in the constitution or rules of the registered social landlord would confer on the original authority the right, as a member of the registered social landlord, to bounce on judgments of the registered social landlord, that provision is to be treated as having no effect

7J Power to disapply vittles of this Chapter

1) The Welsh Ministers may by order give that vittles of this Chapter specified in the order aren’t to apply to registered social landlords that are wholly controlled original authority accessories.
2) A registered social landlord is a wholly controlled original authority attachment if —
( a) it is a company or registered society;
b) all of its members are within subsection( 3), and
( c) one or further of the conditions in subsection( 4)( in the case of a company) or in subsection( 5)( in the case of a registered society) is met.
3) A person is within this subsection if the person is —
( a) a original authority;
b) a company or registered society that’s a attachment of a original authority( see subsection( 6));
c) a person acting on behalf of a person within paragraph( a) or( b).
4) The conditions are —
( a) a original authority has power to appoint or remove all or a maturity of the board of directors;
b) a original authority holds further than half in nominal value of the company’s equity share capital;
c) the company is a attachment, within the meaning of the Companies Act 2006 or Part 7 of the united and Community Benefit Societies Act 2014, of a company or a registered society that’s a attachment of a original authority by virtue of meeting the condition in paragraph( a) or( b) or in subsection( 5)( a).
5) The conditions are —
( a) a original authority has power to appoint or remove all or a maturity of the members of the commission of operation of the society;
b) the society is a attachment, within the meaning of the Companies Act 2006 or Part 7 of the united and Community Benefit Societies Act 2014, of a company or a registered society that’s a attachment of a original authority by virtue of meeting the condition in paragraph( a) or in subsection( 4)( a) or( b).
6) For the purposes of subsection( 3)( b), a company or registered society is a attachment of a original authority if one or further of the conditions in subsection( 4)( in the case of a company) or subsection( 5)( in the case of a registered society) is met.
7) The Welsh Ministers may by order make provision for a registered social landlord of a description specified in the order to be treated as being a wholly controlled original authority attachment for the purposes of this section and any order made under it.
( 8) An order under this section is to be made by statutory instrument subject to dissolution in performance of a resolution of the National Assembly for Wales. ”

SCHEDULE 2

MINOR AND CONSEQUENTIAL emendations
Leasehold Reform, Housing and Urban Development Act 1993(c. 28)

1In paragraph 1( 2) of Schedule 10 to the Leasehold Reform, Housing and Urban Development Act 1993( accession of interests from original authorities) —
( a) in paragraph( ba), for “ sections 9 and ” cover “ section ”;
( b) in paragraph( c), forget “ and section 81 of that Act( certain posterior disposals); and ”.

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