SCHEDULE 12Restraints on transactions and recruitment etc. by merging councils and restructuring councils
Directions: consequences of contravention
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1
An acquisition or disposal made in contravention of a direction given under paragraph 1 is void.
2
A contract (including a contract for employment) or agreement entered into in contravention of a direction given under paragraph 1 is unenforceable.
3
A grant or other financial assistance given, or a loan made, in contravention of a direction given under paragraph 1 is repayable.
4
If a merging council or restructuring council includes financial reserves in a calculation under section 32 of the Local Government Finance Act 1992 (c. 14) in contravention of a direction given under paragraph 1, the council is to be treated for the purposes of section 30(8) of that Act as not having made the calculations required by Chapter 3 of Part 1 of that Act.