1(1)A registered social landlord shall not make a gift or pay a sum by way of dividend or bonus to—E+W
(a)a person who is or has been a member of the body,
(b)a person who is a member of the family of a person within paragraph (a), or
(c)a company of which a person within paragraph (a) or (b) is a director,
except as permitted by this paragraph.
(2)The following are permitted—
(a)the payment of a sum which, in accordance with the constitution or rules of the body, is paid as interest on capital lent to the body or subscribed by way of shares in the body;
(b)the payment by a fully mutual housing association to a person who has ceased to be a member of the association of a sum which is due to him either under his tenancy agreement with the association or under the terms of the agreement under which he became a member of the association.
[F1(c)the payment of a sum, in accordance with the constitution or rules of the body, to a registered social landlord which is a subsidiary or associate of the body.]
(3)Where [F2a registered society] or [F3a company] pays a sum or makes a gift in contravention of this paragraph, the society or company may recover the sum or the value of the gift, and proceedings for its recovery shall be taken if the [F4Relevant Authority] so directs.
Textual Amendments
F1Sch. 1 para. 1(2)(c) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 14
F2Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)
F3Words in Sch. 1 para. 1(3) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 161(10)(a) (with art. 10)
F4Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.