Part 2Name, rules, powers etc

Power to restrict use of assets

29Power to restrict use of assets of a community benefit society

1

The Treasury may by regulations make provision for enabling any community benefit society, or any community benefit society of a prescribed kind, to ensure that—

a

assets of the society of a prescribed kind,

b

assets of the society specified by it in accordance with the regulations, or

c

all of the society's assets,

cannot be used or dealt with except in a case mentioned in subsection (2).

2

The cases are—

a

where the use or dealing is, directly or indirectly—

i

for a purpose that is for the benefit of the community and is of a prescribed kind, or

ii

if no kinds of purpose are prescribed under this paragraph, for any purpose that is for the benefit of the community, or

b

where the circumstances are such as may be prescribed.

3

Where under the regulations a society has ensured as mentioned in subsection (1) as respects any of its assets, the assets concerned are “dedicated assets” for the purposes of this section.

4

Regulations under this section may, in particular—

a

provide for the procedure by which a society may ensure as mentioned in subsection (1);

b

provide for such of a society's rules as are of a prescribed kind to be unalterable, or for them to be alterable only in prescribed circumstances or in circumstances specified in rules of a prescribed kind;

c

provide that, in any circumstances prescribed under subsection (2)(b), dedicated assets must be dealt with in a prescribed way;

d

make provision for ensuring that any society, company or other person to whom any dedicated assets are transferred in prescribed circumstances cannot use or deal with those assets except in a case mentioned in subsection (2);

e

provide for members of a society who lose property rights as a result of the society's ensuring as mentioned in subsection (1) to be compensated for that loss (whether by payment of a prescribed amount or of an amount determined in a prescribed way or otherwise), subject to such exceptions as may be prescribed;

f

provide for the enforcement of provisions designed to ensure as mentioned in subsection (1);

g

make provision for the carrying out of investigations by persons appointed by a prescribed person;

h

confer power on a prescribed person to require persons of a prescribed description to provide the prescribed person with information in order to enable or assist that person to perform any of the person's functions under the regulations;

i

provide for restrictions on the use and disclosure of information obtained by any person in the performance of any function under the regulations.

5

Regulations under this section may—

a

impose criminal liability;

b

confer functions on a prescribed person;

c

confer jurisdiction on any court;

d

authorise a prescribed person to make rules, binding on persons of a prescribed description, for the purpose of enabling or assisting the prescribed person to perform any of the person's functions under the regulations;

e

make provision as to the making, publication and enforcement of such rules;

f

provide for a prescribed person to charge fees sufficient to meet the costs of performing any of the person's functions under the regulations;

g

modify, exclude or apply (with or without modifications) any enactment or rule of law;

h

contain such incidental, consequential and supplementary provision as the Treasury consider appropriate;

i

make different provision for different cases.

6

Regulations under this section may not create any new criminal offence punishable with imprisonment for more than 7 years.

7

In this section—

  • “community benefit society” includes a pre-commencement society that meets the condition in section 2(2)(a)(ii);

  • “prescribed” means prescribed by regulations under this section.