(1) This section applies where an institution in Wales within the further education sector provides ... education suitable to the requirements of persons over compulsory school age who have not attained the age of nineteen years.
(2) The ... National Assembly for Wales may by notice given to the governing body of such an institution—
(a) require them to provide for such individuals as may be specified in the notice such education falling within subsection (1) above as is appropriate to their abilities and aptitudes, or
(b) withdraw such a requirement.
(3) The governing body of such an institution shall, for any academic year in respect of which they receive financial support from the ... National Assembly for Wales, secure compliance with any requirement in respect of any individual who has not attained the age of nineteen years which is or has been imposed by the ... National Assembly for Wales under subsection (2) above and has not been withdrawn.
52A Duty to safeguard pupils receiving secondary education.
(1) This section applies where secondary education is provided to persons of compulsory school age—
(a) by a further education corporation by virtue of section 18(1)(aa) or (ab) of this Act,
(aa) by a sixth form college corporation by virtue of section 33E(1)(b) or (c) of this Act, or
(b) by a designated institution in pursuance of arrangements made—
(i) by a local authority, or
(ii) by the governing body of a school on behalf of such an authority.
(2) The governing body of the corporation or institution shall secure that, except in such circumstances as may be prescribed by regulations, no education is provided to a person who has attained the age of nineteen years in a room in which any persons of compulsory school age are for the time being receiving secondary education.
52B Duty to review provision in relation to local needs: England
(1) The governing body of an institution in England within the further education sector must—
(a) from time to time review how well the education or training provided by the institution meets local needs, and
(b) in light of that review, consider what action the institution might take (alone or in conjunction with action taken by one or more other educational institutions) in order to meet those needs better.
(2) In carrying out its review, the governing body must have regard to any guidance published under this section by the Secretary of State.
(3) The governing body must publish its review on the institution’s website.
(1) The accounts of—
(a) any further education corporation,
(aa) any sixth form college corporation, and
(b) any designated institution,
shall be open to the inspection of the Comptroller and Auditor General.
(2) In the case of any such corporation or institution—
(a) the power conferred by subsection (1) above, and
(b) the powers under sections 6 and 8 of the National Audit Act 1983 (examinations into the economy, efficiency and effectiveness of certain bodies and access to documents and information) conferred on the Comptroller and Auditor General by virtue of section 6(3)(c) of that Act,
shall be exercisable only in, or in relation to accounts or other documents which relate to, any financial year in which expenditure is incurred by the corporation, or by the governing body of the institution in question, in respect of which grants, loans or other payments are made to them under section 15ZA or 18A of the Education Act 1996, section 14 of the Education Act 2002 or section ... 100 of the Apprenticeships, Skills, Children and Learning Act 2009.
(1) Each of the following must give the Secretary of State such information as the Secretary of State may require for purposes connected with further education—
(a) a local authority in England,
(b) the governing body of any institution maintained by a local authority in England,
(c) the governing body of a city technology college in England, a city college for the technology of the arts in England or an Academy,
(d) the governing body of any institution in England within the further education sector or the higher education sector, and
(e) any person or body who—
(i) provides further education, and
(ii) is receiving or has received funding to do so from the Secretary of State, a local authority in England , a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009 or a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023.
(2) Each of the following must give the Welsh Ministers such information as the Welsh Ministers may require for the purposes of the exercise of any of the Welsh Ministers' functions under any enactment—
(a) a local authority,
(b) the governing body of any institution maintained by a local authority, and
(c) the governing body of any institution within the further education sector or the higher education sector.
(3) Such information relating to the provision which has been made by a local authority in respect of any pupil at an institution as the authority may require for the purposes of claiming any amount in respect of the pupil from another authority under regulations under section 492 or 493 of the Education Act 1996 shall, where the institution becomes an institution within the further education sector, be provided to the authority by the governing body of the institution.
55 Inspection etc. of local authority institutions, other than schools, and advice to Secretary of State.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In relation to any local authority institution maintained or assisted by them, a local authority—
(a) shall keep under review the quality of education provided, the educational standards achieved and whether the financial resources made available are managed efficiently, and
(b) may cause an inspection to be made by persons authorised by them.
(5) A local authority shall not authorise any person to inspect any institution under this section unless they are satisfied that he is suitably qualified to do so.
(6) A person who wilfully obstructs any person authorised to inspect an institution under or by virtue of this section in the exercise of his functions shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.
(7) In this section—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) “local authority institution” means an educational institution, other than a school, maintained or assisted by a local authority.
(1) This section applies if the Secretary of State is satisfied as to one or more of the matters listed in subsection (2) in the case of—
(a) an institution in England within the further education sector, other than a sixth form college, or
(b) an institution in England which is maintained by a local authority and provides further education, other than an institution within the higher education sector,
and, in either case, it is immaterial whether or not a complaint is made by any person.
(2) The matters are—
(a) that the institution's affairs have been or are being mismanaged by the institution's governing body;
(b) that the institution's governing body have failed to discharge any duty imposed on them by or for the purposes of any Act;
(c) that the institution's governing body have acted or are proposing to act unreasonably with respect to the exercise of any power conferred or the performance of any duty imposed by or under any Act;
(d) that the institution is performing significantly less well than it might in all the circumstances reasonably be expected to perform, or is failing or likely to fail to give an acceptable standard of education or training.
(e) that the education or training provided by the institution did not, or does not, adequately meet local needs.
(2A) For the purposes of subsection (2)(e), the Secretary of State must take into account any approved local skills improvement plan that applied to the institution when the education or training was provided.
(2B) An approved local skills improvement plan applies to an institution if the institution provides English-funded post-16 technical education or training that is material to a specified area and the plan is for that area.
(2C) Terms used in subsection (2A) or (2B) and in section 1 of the Skills and Post-16 Education Act 2022 have the same meaning in those subsections as in that section.
(3) If this section applies the Secretary of State may do one or more of the things listed in subsection (6).
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) At the same time as doing one or more of those things the Secretary of State must give the institution's governing body a notice stating—
(a) the matter or matters listed in subsection (2) as to which the Secretary of State is satisfied;
(b) the reasons why the Secretary of State is so satisfied;
(c) the reasons why the Secretary of State has decided to do that thing or those things.
(6) The Secretary of State may—
(a) remove all or any of the members of the institution's governing body;
(b) appoint new members of that body if there are vacancies (however arising);
(c) give to that body such directions as the Secretary of State thinks expedient as to the exercise of their powers and performance of their duties.
(7) The directions that may be given to a governing body under this section include —
(a) a direction requiring a governing body to make collaboration arrangements (within the meaning of section 166 of the Education and Inspections Act 2006) with such bodies and on such terms as may be specified in the direction.
(b) a direction requiring a governing body to make a resolution under section 27A(1) , or take such other steps specified in the direction as may be required, for the body to be dissolved on a date specified in the direction.
(c) a direction requiring a governing body to transfer property, rights or liabilities specified in the direction, and take any other steps specified in the direction in connection with the transfer in relation to property, rights or liabilities so specified.
(7A) A governing body to which a direction is given requiring the body to make a resolution under section 27A(1)—
(a) is to be taken for the purposes of section 27A(1) to have complied with section 27 before making the resolution required by the direction, and
(b) must, unless the Secretary of State directs otherwise, exercise its powers under section 27B to transfer property, rights or liabilities on the dissolution date.
(7B) A direction under subsection (7)(c) requiring the transfer of property, rights or liabilities to a person specified in the direction may only be given with the consent of the person so specified.
(8) Directions may be given to a governing body under this section despite any enactment making the exercise of a power or performance of a duty contingent on the body's opinion.
(9) The Secretary of State may not give a direction to a governing body under subsection (6)(c) which relates to the dismissal of a member of staff.
(9A) Before giving a direction for the transfer of property, rights or liabilities under subsection (7)(c), the Secretary of State must consult the Competition and Markets Authority.
(9B) Part 3 of the Enterprise Act 2002 does not apply in relation to a merger that will result or has resulted from a direction under this section.
(9C) The Secretary of State may give financial assistance (by way of grant, loan, guarantee or any other form) to any person in connection with the giving of a direction under this section.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) A governing body must comply with any directions given to them under this section.
(12) An appointment of a member of a governing body under this section shall have effect as if made in accordance with the instrument of government and articles of government of the institution concerned.
56E Intervention by Secretary of State : sixth form colleges
(1) This section applies in relation to a sixth form college if the Secretary of State is satisfied as to one or more the matters listed in subsection (2) in relation to the sixth form college; and it is immaterial whether or not a complaint is made by any person.
(2) The matters are—
(a) that the sixth form college's affairs have been or are being mismanaged by its governing body;
(b) that the sixth form college's governing body have failed to discharge any duty imposed on them by or for the purposes of any Act;
(c) that the sixth form college's governing body have acted or are proposing to act unreasonably with respect to the exercise of any power conferred or the performance of any duty imposed by or under any Act;
(d) that the sixth form college is performing significantly less well than it might in all the circumstances reasonably be expected to perform, or is failing or likely to fail to give an accepted standard of education or training.
(e) that the education or training provided by the sixth form college did not, or does not, adequately meet local needs.
(2A) For the purposes of subsection (2)(e), the Secretary of State must take into account any approved local skills improvement plan that applied to the sixth form college when the education or training was provided.
(2B) An approved local skills improvement plan applies to a sixth form college if the college provides English-funded post-16 technical education or training that is material to a specified area and the plan is for that area.
(2C) Terms used in subsection (2A) or (2B) and in section 1 of the Skills and Post-16 Education Act 2022 have the same meaning in those subsections as in that section.
(3) If this section applies the Secretary of State may do one or more of the things listed in subsection (6).
(4) Subsections (4A) and (4B) apply to a sixth form college which is specified, or falls within a class specified, in an order under section 33J(2).
(4A) Before doing one or more of the things listed in subsection (6), the Secretary of State must consult—
(a) the trustees of the sixth form college, and
(b) each person or body with power under the college's instrument of government to appoint or nominate one or more of its foundation governors.
(4B) After carrying out a consultation under subsection (4A), the Secretary of State must give the persons and bodies consulted a notice stating—
(a) what the Secretary of State has decided to do;
(b) the reasons for the decision.
(5) If the Secretary of State does one or more of the things listed in subsection (6), the Secretary of State must at the same time give the sixth form college's governing body a notice stating—
(a) the matter or matters listed in subsection (2) as to which the Secretary of State is satisfied;
(b) the reasons why the Secretary of State has decided to do that thing or those things.
(6) The Secretary of State may—
(a) remove all or any of the members of the sixth form college's governing body;
(b) appoint new members of that body if there are vacancies (however arising);
(c) give to that body such directions as the Secretary of State thinks expedient as to the exercise of the body's powers and performance of the body's duties.
(7) The directions that may be given to a governing body under this section include —
(a) a direction requiring a governing body to make collaboration arrangements (within the meaning of section 166 of the Education and Inspections Act 2006) with such bodies and on such terms as may be specified in the direction.
(b) a direction requiring a governing body to make a resolution under section 33O(1) for the body to be dissolved on a date specified in the direction.
(c) a direction requiring a governing body to transfer property, rights or liabilities specified in the direction, and take any other steps specified in the direction in connection with the transfer in relation to property, rights or liabilities so specified.
(7A) A governing body to which a direction such as is mentioned in subsection (7)(b) is given—
(a) is to be taken for the purposes of section 33O(1) to have complied with section 33N before making the resolution required by the direction, and
(b) must, unless the Secretary of State directs otherwise, exercise its powers under section 33P to transfer property, rights or liabilities on the dissolution date.
(7B) A direction under subsection (7)(c) requiring the transfer of property, rights or liabilities to a person specified in the direction may only be given with the consent of the person so specified.
(8) Directions may be given to a governing body under this section despite any enactment making the exercise of a power or performance of a duty contingent on the body's opinion.
(9) The Secretary of State may not give a direction to a governing body under subsection (6)(c) which relates to the dismissal of a member of staff.
(9A) Before giving a direction for the transfer of property, rights or liabilities under subsection (7)(c), the Secretary of State must consult the Competition and Markets Authority.
(9B) Part 3 of the Enterprise Act 2002 does not apply in relation to a merger that will result or has resulted from a direction under this section.
(9C) The Secretary of State may give financial assistance (by way of grant, loan, guarantee or any other form) to any person in connection with the giving of a direction under this section.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) A governing body must comply with any directions given to them under this section.
(12) An appointment of a member of a governing body under this section shall have effect as if made in accordance with the governing body's instrument of government and articles of government.
(1) This section applies if one or more of the conditions listed in subsection (2) is satisfied regarding an institution in Wales within the further education sector; and it is immaterial whether or not a complaint is made by any person.
(2) These are the conditions—
(a) the Welsh Ministers are satisfied that the institution’s affairs have been or are being mismanaged by its governing body;
(b) they are satisfied that the institution’s governing body have failed to discharge any duty imposed on them by or for the purposes of any Act or any Measure of the National Assembly for Wales;
(c) they are satisfied that the institution’s governing body have acted or are proposing to act unreasonably with respect to the exercise of any power conferred or the performance of any duty imposed by or under any Act or any Measure of the National Assembly for Wales;
(d) they are satisfied that the institution is performing significantly less well than it might in all the circumstances reasonably be expected to perform, or is failing or likely to fail to give an acceptable standard of education or training.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) If this section applies the Welsh Ministers may by order—
(a) declare which of the conditions is (or are) satisfied, and
(b) do one or more of the things listed in subsection (5).
(5) They may—
(a) remove all or any of the members of the institution’s governing body;
(b) appoint new members of that body if there are vacancies (however arising);
(c) give to that body such directions as they think expedient as to the exercise of their powers and performance of their duties.
(5A) The directions that may be given to a governing body under this section include —
(a) a direction requiring a governing body to exercise powers under section 5(2)(b) to (f) and (h) of the Education (Wales) Measure 2011 to collaborate with such persons and on such terms as may be specified in the direction., and
(b) a direction requiring a governing body to make a resolution under section 27A(1) for the body to be dissolved on a date specified in the direction.
(5B) A governing body to which a direction such as is mentioned in subsection (5A)(b) is given is to be taken for the purposes of section 27A(1) to have complied with section 27 before making the resolution required by the direction.
(6) Directions may be given to a body under this section despite any enactment making the exercise of a power or performance of a duty contingent on the body’s opinion.
(6A) The Welsh Ministers may not direct a governing body under subsection (5)(c) to dismiss a member of staff.
(6B) But subsection (6A) does not prevent the Welsh Ministers, where they consider that it may be appropriate to dismiss a member of staff whom the governing body have power under their institution's articles of government to dismiss, from giving the governing body such directions under this section as are necessary to secure that the procedures applicable to the consideration of the case for dismissal of that member of staff are given effect to in relation to that member of staff.
(7) A governing body must comply with any directions given to them under this section.
(8) An appointment of a member of a governing body under this section shall have effect as if made in accordance with the instrument of government and articles of government of the institution concerned.
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) In this Part of this Act—
“functions” includes powers and duties,
“modifications” includes additions, alterations and omissions and “modify” shall be construed accordingly, and
“regulations” means regulations made by the Secretary of State or the Welsh Ministers.
(2) References in this Part of this Act, except section 26, to the transfer of any person’s rights or liabilities do not include—
(a) rights or liabilities under a contract of employment, or
(b) liabilities of that person in respect of compensation for premature retirement of any person formerly employed by him.
(3) In relation to any time before the commencement of section 65 of this Act, references in this Part of this Act and, so far as relating to this Part, Part III of this Act—
(a) to institutions within the higher education sector are to universities, to institutions within the PCFC funding sector and to higher education institutions which receive, or are maintained by persons who receive, grants under regulations made under section 100(1)(b) of the Education Act 1944, and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62 The Higher Education Funding Council for Wales.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) shall have regard to the desirability of including persons who appear to him to have experience of, and to have shown capacity in, the provision of higher education or to have held, and to have shown capacity in, any position carrying responsibility for the provision of higher education and, in appointing such persons, he shall have regard to the desirability of their being currently engaged in the provision of higher education or in carrying responsibility for such provision, and
(b) shall have regard to the desirability of including persons who appear to him to have experience of, and to have shown capacity in, industrial, commercial or financial matters or the practice of any profession.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In this Part of this Act references to ... institutions in Wales—
(a) are to institutions whose activities are carried on, or principally carried on, in ... Wales, but
(b) include ... the Open University.
(7A) In exercising their functions, the HEFCW shall have regard to the requirements of disabled persons.
(7B) In subsection (7A) “disabled persons” means persons who are disabled persons for the purposes of the Equality Act 2010.
(8) Any dispute as to whether any functions are exercisable by the HEFCW or the Office for Students shall be determined by the Secretary of State.
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) On the appointed day—
(a) the Universities Funding Council and the Polytechnics and Colleges Funding Council (referred to in this section as the “existing councils”) shall be dissolved, and
(b) all property, rights and liabilities to which either of the existing councils were entitled or subject immediately before that date shall become by virtue of this section property, rights and liabilities of the Higher Education Funding Council for England,
but this subsection does not apply to rights or liabilities under a contract of employment.
(2) Where—
(a) immediately before the appointed day, a person (referred to below as “the employee”) is employed by an existing council (referred to below as “the existing employer”) under a contract of employment which would have continued but for the dissolution of the existing employer, and
(b) the employee is designated for the purposes of this section by an order made by the Secretary of State,
the contract of employment shall not be terminated by that dissolution but shall have effect as from the appointed day as if originally made between the employee and the new employer.
(3) In this section “the new employer”, in relation to the employee, means such higher education funding council as may be specified in relation to the employee by the order designating him for the purposes of this section; and in this subsection “higher education funding council” includes the Scottish Higher Education Funding Council.
(4) Without prejudice to subsection (2) above, where that subsection applies—
(a) all the existing employer’s rights, powers, duties and liabilities under or in connection with the contract of employment shall by virtue of this section be transferred on the appointed day to the new employer, and
(b) anything done before that date by or in relation to the existing employer in respect of that contract or the employee shall as from that date be treated as having been done by or in relation to the new employer.
(5) Subsections (2) and (4) above are without prejudice to any right of the employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions, but no such right shall arise by reason only of the change in employer effected by this section.
(6) An order under this section may designate a person either individually or as a member of a class or description of employees.
(7) In this section “the appointed day” means the day appointed under section 94 of this Act for the commencement of this section.
(1) The HEFCW shall be responsible, subject to the provisions of this Part of this Act, for administering funds made available to the HEFCW by the Secretary of State and others for the purposes of providing financial support for activities eligible for funding under this section.
(2) The activities eligible for funding under this section are—
(a) the provision of education and the undertaking of research by higher education institutions in the HEFCW's area,
(b) the provision of any facilities, and the carrying on of any other activities, by higher education institutions in their area which the governing bodies of those institutions consider it necessary or desirable to provide or carry on for the purpose of or in connection with education or research,
(c) the provision—
(i) by institutions in their area maintained or assisted by local authorities, or
(ii) by such institutions in their area as are within the further education sector,
of prescribed courses of higher education, and
(d) the provision by any person of services for the purposes of, or in connection with, the provision of education or the undertaking of research by institutions within the higher education sector.
(3) The HEFCW may—
(a) make grants, loans or other payments to the governing body of any higher education institution in respect of expenditure incurred or to be incurred by them for the purposes of any activities eligible for funding under this section by virtue of subsection (2)(a) or (b) above, and
(b) make grants, loans or other payments to any persons in respect of expenditure incurred or to be incurred by them for the purposes of the provision as mentioned in subsection (2)(c) above of prescribed courses of higher education or the provision of services as mentioned in subsection (2)(d) above,
subject in each case to such terms and conditions as the HEFCW think fit.
(3A) In the application of subsection (3) above to any grants, loans or other payments by the HEFCW, the reference to expenditure incurred or to be incurred by the governing body of a higher education institution as mentioned in paragraph (a) of that subsection includes a reference to expenditure incurred or to be incurred by any connected institution to which the governing body propose, with the consent of the HEFCW, to pay the whole or part of any such grants, loans or other payments.
(3B) In subsection (3A) “connected institution”, in relation to a higher education institution, means any college, school, hall or other institution which the HEFCW are satisfied has a sufficient connection with that institution for the purposes of that subsection.
(4) The terms and conditions on which the HEFCW may make any grants, loans or other payments under this section may in particular—
(a) enable the HEFCW to require the repayment, in whole or in part, of sums paid by the HEFCW if any of the terms and conditions subject to which the sums were paid is not complied with, and
(b) require the payment of interest in respect of any period during which a sum due to the HEFCW in accordance with any of the terms and conditions remains unpaid,
but shall not relate to the application by the body to whom the grants or other payments are made of any sums derived otherwise than from the HEFCW.
(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In this section and section 66 of this Act “higher education institution” means a university, an institution conducted by a higher education corporation or a designated institution.
(1) Before exercising their discretion under section 65(3)(a) of this Act with respect to the terms and conditions to be imposed in relation to any grants, loans or other payments, the HEFCW shall consult such of the following bodies as appear to the HEFCW to be appropriate to consult in the circumstances—
(a) such bodies representing the interests of higher education institutions as appear to the HEFCW to be concerned, and
(b) the governing body of any particular higher education institution which appears to the HEFCW to be concerned.
(2) In exercising their functions in relation to the provision of financial support for activities eligible for funding under section 65 of this Act the HEFCW shall have regard to the desirability of not discouraging any institution for whose activities financial support is provided under that section from maintaining or developing its funding from other sources.
(3) In exercising those functions the HEFCW shall have regard (so far as they think it appropriate to do so in the light of any other relevant considerations) to the desirability of maintaining—
(a) what appears to them to be an appropriate balance in the support given by them as between institutions which are of a denominational character and other institutions, and
(b) any distinctive characteristics of any institution within the higher education sector for whose activities financial support is provided under that section.
(4) For the purposes of subsection (3) above an institution is an institution of a denominational character if it appears to the HEFCW that either—
(a) at least one quarter of the members of the governing body of the institution are persons appointed to represent the interests of a religion or religious denomination,
(b) any of the property held for the purposes of the institution is held upon trusts which provide that, in the event of the discontinuance of the institution, the property concerned shall be held for, or sold and the proceeds of sale applied for, the benefit of a religion or religious denomination, or
(c) any of the property held for the purposes of the institution is held on trust for or in connection with—
(i) the provision of education, or
(ii) the conduct of an educational institution,
in accordance with the tenets of a religion or religious denomination.
67 Payments in respect of persons employed in provision of higher or further education.
(1) In section 133 of the Education Reform Act 1988 (payments by PCFC in respect of persons employed in the provision of higher or further education) for subsection (1) there is substituted—
(1) A higher education funding council shall have power to make payments, subject to such terms and conditions as the council think fit, to—
(a) any local authority in their area;
(b) the London Residuary Body;
(c) the London Pensions Fund Authority; and
(d) the governing body of any institution designated under section 129 of this Act, as originally enacted;
in respect of relevant expenditure incurred or to be incurred by that authority or body of any class or description prescribed for the purposes of this section.
(2) In subsection (2)(a) of that section (meaning of relevant expenditure) after “education authority” there is inserted “ the London Residuary Body or the London Pensions Fund Authority ”.
(3) At the end of subsection (3) of that section (meaning of references to higher and further education) there is added “ and in any other case the reference to further education shall be read as a reference to further education within the meaning of section 41 of the 1944 Act as that section had effect on that date ”.
(4) In subsection (4) of that section (duty to give information) after paragraph (a) there is inserted—
(aa) the London Residuary Body;
(ab) the London Pensions Fund Authority
.
(5) That section as originally enacted shall have effect, or be treated as having had effect, as if—
(a) in subsection (1), in relation to anything done before regulations for the purposes of that subsection were in force, the words “of any class or description prescribed for the purposes of this section” were omitted, and
(b) in subsections (1) and (2) the references to a local authority included the London Residuary Body and the London Pensions Fund Authority.
71 Higher education corporations: constitution and conduct.
(1) After section 124 of the Education Reform Act 1988 there is inserted—
Constitution and conduct of corporations.
124A (1) For each higher education corporation established on or after the appointed day there shall be an instrument (to be known as the instrument of government) providing for the constitution of the corporation and making such other provision as is required under this section.
(2) The initial instrument of government of a higher education corporation established on or after that day shall be such as is prescribed by an order of the Privy Council.
(3) An order of the Privy Council may—
(a) make an instrument of government of any higher education corporation with respect to which Schedule 7 to this Act has effect or make a new instrument of government of any higher education corporation in place of the instrument prescribed under subsection (2) above; or
(b) modify an instrument made in pursuance of this subsection.
(4) An instrument of government of a higher education corporation—
(a) shall comply with the requirements of Schedule 7A to this Act; and
(b) may make any provision authorised to be made by that Schedule and such other provision as may be necessary or desirable.
(5) An order under subsection (2) or (3) above may make such provision as appears to the Privy Council necessary or desirable to secure continuity in the government of the institution or institutions to which it relates.
(6) The validity of any proceedings of a higher education corporation for which an instrument of government has effect, or of any committee of such a corporation, shall not be affected by a vacancy amongst the members or by any defect in the appointment or nomination of a member.
(7) Every document purporting to be an instrument made or issued by or on behalf of a higher education corporation for which an instrument of government has effect and to be duly executed under the seal of the corporation, or to be signed or executed by a person authorised by the corporation to act in that behalf, shall be received in evidence and be treated, without further proof, as being so made or issued unless the contrary is shown.
(8) In relation to a higher education corporation for which an instrument of government has effect the members of the corporation for the time being shall be known as the board of governors of the institution conducted by the corporation.
(9) The Secretary of State may by order amend or repeal any of paragraphs 3 to 5 and 11 of Schedule 7A to this Act.
(10) In this section and section 124C “the appointed day” means the day appointed under section 94 of the Further and Higher Education Act 1992 for the commencement of section 71 of that Act.
Accounts.
124B (1) It shall be the duty of each corporation—
(a) to keep proper accounts and proper records in relation to the accounts; and
(b) to prepare in respect of each financial year of the corporation a statement of accounts.
(2) The statement shall—
(a) give a true and fair account of the state of the corporation’s affairs at the end of the financial year and of the corporation’s income and expenditure in the financial year; and
(b) comply with any directions given by the higher education funding council as to the information to be contained in the statement, the manner in which the information is to be presented or the methods and principles according to which the statement is to be prepared.
(3) The corporation shall supply a copy of the statement to any person who asks for it and, if the corporation so requires, pays a fee of such amount not exceeding the cost of supply as the corporation thinks fit.
(4) The accounts (including any statement prepared under this section) shall be audited by persons appointed in respect of each financial year by the corporation.
(5) The corporation shall consult, and take into account any advice given by, the Audit Commission for Local Authorities and the National Health Service in England and Wales before appointing any auditor under subsection (4) above in respect of their first financial year.
(6) No person shall be qualified to be appointed auditor under that subsection except—
(a) an individual, or firm, eligible for appointment as a company auditor under section 25 of the Companies Act 1989;
(b) a member of the Chartered Institute of Public Finance and Accountancy; or
(c) a firm each of the members of which is a member of that institute.
(7) In this section, in relation to a corporation—
“the first financial year” means the period commencing with the date on which the corporation is established and ending with the second 31st March following that date; and
“financial year” means that period and each successive period of twelve months.
Initial and transitional arrangements.
124C (1) The Secretary of State shall be the appointing authority in relation to the appointment of the first members of a corporation established on or after the appointed day and, in determining the number of members to appoint within each variable category of members, he shall secure that at least half of all the members of the corporation as first constituted are independent members.
(2) In subsection (1) above “variable category of members” and “independent members” have the same meaning as in Schedule 7A to this Act.
(3) The following provisions apply where an instrument of government is made under section 124A of this Act for a higher education corporation with respect to which Schedule 7 to this Act has effect.
(4) The instrument shall apply, subject to subsection (5) below, as if the persons who, immediately before its coming into effect, were the members of the corporation had been appointed in accordance with the instrument for the residue of the term of their then subsisting appointment.
(5) Any local authority nominee, teacher nominee, general staff nominee or student nominee (within the meaning, in each case, of Schedule 7 to this Act) shall cease to hold office.
Exercise of Powers by Privy Council.
124D (1) This section applies in relation to the exercise of powers for the purposes of this Part of this Act.
(2) A power vested in the Privy Council may be exercised by any two or more of the lords and others of the Council.
(3) An act of the Privy Council shall be sufficiently signified by an instrument signed by the clerk of the Council.
(4) An order or act signified by an instrument purporting to be signed by the clerk of the Council shall be deemed to have been duly made or done by the Privy Council.
(5) An instrument so signed shall be received in evidence in all courts and proceedings without proof of the authority or signature of the clerk of the Council or other proof.
(2) In section 125 of that Act (articles of government) for “the Secretary of State” (in each place where it appears) there is substituted “ the Privy Council ”; but nothing in this subsection requires further approval to be given for anything approved by the Secretary of State under that section before the commencement of this subsection.
(3) In Schedule 7 to that Act (constitution of higher education corporations)—
(a) at the end of paragraph 7 (appointments) there is added—
(8) If the number of independent members of the corporation falls below the number needed in accordance with its articles of government for a quorum, the Secretary of State is the appointing authority in relation to the appointment of such number of independent members as is required for a quorum
, and
(b) in paragraph 18 (accounts) after sub-paragraph (2) there is inserted—
(2A) The corporation shall supply a copy of the statement to any person who asks for it and, if the corporation so requires, pays a fee of such amount not exceeding the cost of supply as the corporation thinks fit.
(4) After that Schedule there is inserted the Schedule set out in Schedule 6 to this Act.
(1) In section 129 of the Education Reform Act 1988 (designation of institutions)—
(a) for subsections (1) and (2) there is substituted—
(1) The Secretary of State may by order designate as an institution eligible to receive support from funds administered by a higher education funding council—
(a) any institution which appears to him to fall within subsection (2) below; and
(b) any institution which is, or is to be, conducted by a successor company to a higher education corporation.
(2) An institution falls within this subsection if its full-time equivalent enrolment number for courses of higher education exceeds 55 per cent. of its total full-time equivalent enrolment number
, and
(b) subsections (3) and (4) of that section are omitted.
(2) An order in force immediately before the commencement of subsection (1) above designating an institution as falling within subsection (3) of that section shall have effect as if made under that section as amended by subsection (1) above.
(3) In this Part of this Act “designated institution” means an institution in relation to which a designation made, or having effect as if made, under section 129 of that Act has effect.
73 Government and conduct of designated institutions.
(1) After section 129 of the Education Reform Act 1988 there is inserted—
Government and conduct of designated institutions.
129A (1) This section has effect in relation to any designated institution, other than an institution conducted by a company.
(2) For each such institution there shall be—
(a) an instrument providing for the constitution of a governing body of the institution (to be known as the instrument of government); and
(b) an instrument in accordance with which the institution is to be conducted (to be known as the articles of government),
each of which meets the requirements of subsection (3) below.
(3) Those requirements are that the instrument—
(a) was in force when the designation took effect; or
(b) is made in pursuance of a power under a regulatory instrument, or is made under subsection (5) below,
and is approved for the purposes of this section by the Privy Council.
(4) In this section “regulatory instrument”, in relation to an institution, means any instrument of government or articles of government and any other instrument relating to or regulating the institution.
(5) Where there is no such power as is mentioned in subsection (3)(b) above to make the instrument, it may be made by the body of persons responsible for the management of the institution and an instrument made by them under this subsection may replace wholly or partly any existing regulatory instrument.
(6) If an instrument approved by the Privy Council for the purposes of this section—
(a) falls within subsection (3)(a) above or was made in pursuance of a power under a regulatory instrument and, apart from this section, there is no power to modify it; or
(b) was made by the body of persons responsible for the management of the institution,
the instrument may be modified by those persons.
(7) Either of the instruments referred to in subsection (2) above may be modified by order of the Privy Council and no instrument approved by the Privy Council for the purposes of this section may be modified by any other person without the Privy Council’s consent.
(8) Before exercising any power under subsection (7) above in relation to any instrument the Privy Council shall consult—
(a) the governing body of the institution, and
(b) where there is such a power as is mentioned in subsection (3)(b) above to modify the instrument and the persons having that power are different from the governing body of the institution, the persons having the power,
so far as it appears to them to be practicable to do so.
(9) Nothing in this section requires further approval for any instrument approved by the Secretary of State for the purposes of section 156 of this Act, and references in this section to instruments approved by the Privy Council for the purposes of this section include instruments so approved by the Secretary of State.
(10) In this section and section 129B “designated institution” means an institution in relation to which a designation made, or having effect as if made, under section 129 of this Act has effect but does not include any institution established by Royal Charter.
Designated institutions conducted by companies.
129B (1) This section has effect in relation to any designated institution conducted by a company.
(2) The articles of association of the company shall incorporate—
(a) provision with respect to the constitution of a governing body of the institution (to be known as the instrument of government of the institution); and
(b) provision with respect to the conduct of the institution (to be known as the articles of government of the institution).
(3) The Privy Council may give to the persons who appear to them to have effective control over the company such directions as they think fit for securing that—
(a) the memorandum or articles of association of the company; or
(b) any rules or bye-laws made in pursuance of any power conferred by the articles of association of the company,
are amended in such manner as they may specify in the direction.
(4) No amendment of the memorandum or articles of association of the company (other than one required under subsection (3)(a) above) shall take effect until it has been submitted to the Privy Council for their approval and they have notified their approval to the company.
(5) Before giving any directions under subsection (3) above the Privy Council shall consult the persons who appear to them to have effective control over the company.
(2) Section 156 of that Act (government and conduct of certain further and higher education institutions) shall cease to have effect in relation to designated institutions.
74 Transfer of further education institutions to higher education sector.
(1) After section 122 of the Education Reform Act 1988 (orders incorporating higher education institutions maintained by local authorities) there is inserted—
Orders transferring further education corporations to higher education sector.
122A (1) The Secretary of State may by order provide for the transfer of a further education corporation to the higher education sector if it appears to him that the full-time equivalent enrolment number of the institution conducted by the corporation for courses of higher education exceeds 55 per cent. of its total full-time equivalent enrolment number.
(2) Where an order under this section is made in respect of a further education corporation, sections 124A and 125 of this Act shall have effect as if—
(a) on the date the order has effect, the corporation were established as a higher education corporation, and
(b) the Secretary of State were the appointing authority in relation to the first members of the higher education corporation.
(3) In determining in pursuance of subsection (2)(b) above the number of members to appoint within each variable category of members, the Secretary of State shall secure that at least half of all the members of the higher education corporation as first constituted are independent members; and in this subsection “variable category of members” and “independent members” have the same meaning as in Schedule 7A to this Act.
(4) On such date as may be specified in the order the corporation shall cease to be a further education corporation and become a higher education corporation and any member of the further education corporation who is not re-appointed by the Secretary of State in pursuance of subsection (2)(b) above shall cease to hold office on that date.
(2) An order under section 129 of the Education Reform Act 1988 (designation of institutions for the purposes of the higher education sector) in respect of any institution may revoke any order in respect of that institution under section 28 of this Act.
In section 157 of the Education Reform Act 1988 (variation of trust deeds, etc.) for subsections (1) to (3) (variations by Secretary of State in connection with institutions in the higher education sector or designated assisted institutions) there is substituted—
(1) An order of the Privy Council may modify any trust deed or other instrument—
(a) relating to or regulating any such institution as is mentioned in subsection (2) below; or
(b) relating to any land or other property held by any person for the purposes of any such institution.
(2) The institutions referred to in subsection (1) above are—
(a) any institution conducted by a higher education corporation; and
(b) any institution in relation to which a designation made, or having effect as if made, under section 129 of this Act has effect, other than an institution established by Royal Charter.
(3) Before making any modifications under subsection (1) above of any trust deed or other instrument the Privy Council shall so far as it appears to them to be practicable to do so consult—
(a) the governing body of the institution;
(b) where that deed or instrument, or any other instrument relating to or regulating the institution concerned, confers power on any other persons to modify or replace that deed or instrument, those persons; and
(c) where the instrument to be modified is a trust deed and the trustees are different from the persons mentioned in paragraphs (a) and (b) above, the trustees.