The percentage of officers of a registered social landlord who are local authority officers may not, on and after the appointed day, exceed 24% of the total number of officers.

Any appointment of a new local authority officer which would result in that percentage being exceeded on and after the appointed day is of no effect.

The registered social landlord must remove a sufficient number of local authority officers to secure that the requirement in paragraph (1) is complied with.

The local authority must nominate the local authority officers who are to be removed under paragraph (3); but if it fails to notify the registered social landlord of the nomination before the appointed day, the officers of the registered social landlord who are not local authority officers must select by majority vote the persons who are to be removed.