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Change 1
As published
122 Payments to members etc.
(1) This section restricts the making of gifts, and the payment of dividends and bonuses, by a non-profit registered provider to—
(a) a member or former member of the registered provider,
(b) a member of the family of a member or former member,
(c) a company which has as a director a person within paragraph (a) or (b).
(2) A gift may be made, and a dividend or bonus may be paid, only if it falls within one of the following permitted classes.
(3) Class 1 is payments which—
(a) are in accordance with the constitution of the registered provider, and
(b) are due as interest on capital lent to the provider or subscribed in its shares.
(4) Class 2 is payments which—
(a) are paid by a fully mutual housing association (within the meaning of section 1(2) of the Housing Associations Act 1985 (c. 69)),
(b) are paid to former members of the association, and
(c) are due under—
(i) tenancy agreements with the association, or
(ii) agreements under which the former members became members of the association.
(5) Class 3 is payments which—
(a) are in accordance with the constitution of the registered provider making the payment (“the payer”), and
(b) are made to a registered provider which is a subsidiary or associate of the payer.
(5A) Class 4 is payments which—
(a) are in accordance with the constitution of the registered provider,
(b) are paid for the benefit of tenants of the provider, and
(c) are in any particular case paid to assist the tenant to obtain other accommodation by acquiring a freehold, or long-leasehold, interest in a dwelling.
(5B) For the purposes of subsection (5A)—
“ long-leasehold interest ”, in relation to a dwelling, means the lessee's interest under a lease of the dwelling granted, for a premium, for a term certain exceeding 21 years;
“ acquiring ”, in relation to a long-leasehold interest in a dwelling, includes acquiring by grant and acquiring by assignment.
(6) If a registered provider contravenes this section—
(a) it may recover the wrongful gift or payment as a debt from the recipient, and
(b) the regulator may require it to take action to recover the gift or payment.
(7) The Secretary of State may by order amend this section for the purpose of—
(a) adding to the permitted classes, or
(b) modifying or removing a permitted class added by order under this subsection.
(8) Before making an order under subsection (7), the Secretary of State must consult—
(a) the Charity Commission,
(b) the regulator, and
(c) one or more bodies appearing to the Secretary of State to represent the interests of registered providers.
Your change, as a redline
122 Payments to members etc.
(1) This section restricts the making of gifts, and the payment of dividends and bonuses, by a non-profit registered provider to—
(a) a member or former member of the registered provider,
(b) a member of the family of a member or former member,
(c) a company which has as a director a person within paragraph (a) or (b).
(2) A gift may be made, and a dividend or bonus may be paid, only if it falls within one of the following permitted classes.
(3) Class 1 is payments which—
(a) are in accordance with the constitution of the registered provider, and
(b) are due as interest on capital lent to the provider or subscribed in its shares.
(4) Class 2 is payments which—
(a) are paid by a fully mutual housing association (within the meaning of section 1(2) of the Housing Associations Act 1985 (c. 69)),
(b) are paid to former members of the association, and
(c) are due under—
(i) tenancy agreements with the association, or
(ii) agreements under which the former members became members of the association.
(5) Class 3 is payments which—
(a) are in accordance with the constitution of the registered provider making the payment (“the payer”), and
(b) are made to a registered provider which is a subsidiary or associate of the payer.
(5A) Class 4 is payments which—
(a) are in accordance with the constitution of the registered provider,
(b) are paid for the benefit of tenants of the provider, and
(c) are in any particular case paid to assist the tenant to obtain other accommodation by acquiring a freehold, or long-leasehold, interest in a dwelling.
(5B) For the purposes of subsection (5A)—
“ long-leasehold interest ”, in relation to a dwelling, means the lessee's interest under a lease of the dwelling granted, for a premium, for a term certain exceeding 21 years;
“ acquiring ”, in relation to a long-leasehold interest in a dwelling, includes acquiring by grant and acquiring by assignment.
(6) If a registered provider contravenes this section—
(a) it may recover the wrongful gift or payment as a debt from the recipient, and
(b) the regulator may require it to take action to recover the gift or payment.
(7) The Secretary of State may by order amend this section for the purpose of—
(a) adding to the permitted classes, or
(b) modifying or removing a permitted class added by order under this subsection.
(8) Before making an order under subsection (7), the Secretary of State must consult—
(a) the Charity Commission,
(b) the regulator, and
(c) one or more bodies appearing to the Secretary of State to represent the interests of registered providers.
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