EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision to reduce the amount of local authority influence over registered social landlords (RSLs). Part 2 of the Housing (Scotland) Act 2010 (asp 17) sets out the provisions governing RSLs and provides that the Scottish Housing Regulator must keep a register of social landlords.

These Regulations apply notwithstanding any provision in an RSL’s constitution or any contractual arrangement an RSL may have in relation to its constitutional arrangements.

Regulation 3 provides that as of the appointed day, which is 8th March 2019, no more than 24% of the officers of an RSL may be local authority officers. The local authority must nominate which of its officers are to be removed. In the event that it does not, the non-local authority officers of the RSL must select by majority vote those local authority officers who are to be removed.

Regulation 4 provides that any provision of a constitution of an RSL requiring local authority officers to be present for a quorum to be reached shall have no effect on and after the appointed day.

Regulation 5 is concerned with the voting rights a local authority may have as part of its membership of an RSL. It provides, by no later than the appointed day of 8th March 2019, for the re-assignment of voting rights of a local authority which are held before these regulations come into force. If an RSL’s constitution that requires to be amended by this regulation is not amended accordingly by the appointed day, local authority membership voting rights are thereafter re-assigned to the remaining members, in a pro-rata proportion to their existing share of votes.

Where a constitution of an RSL (whose board contains local authority officers) provides for a resolution to be approved by more than 75% of the votes cast, regulation 6 provides that, on and after the appointed day, that provision has effect to require that the decision be approved by at least 75% of the votes cast. It also makes provision to ensure amendment of the constitution of an RSL to reflect this requirement.

A full impact assessment has not been prepared for this instrument as no impact on business or the private or voluntary sector is foreseen.