Paragraph 1

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 1 para. 15(1)(b) words inserted by Housing Act 2004 Sch. 11 para. 15(2)
Sch. 1 para. 15(4) words inserted by Housing Act 2004 Sch. 11 para. 15(3)
Sch. 1 para. 23(6) words repealed by Criminal Justice Act 2003 Sch. 37 Pt. 9
Sch. 1 para. 24(6) words repealed by Criminal Justice Act 2003 Sch. 37 Pt. 9
Sch. 1 para. 4(2)(c) words substituted by Tribunals, Courts and Enforcement Act 2007 Sch. 16 para. 10

(1)

A registered social landlord shall not make a gift or pay a sum by way of dividend or bonus to—

(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.

Annotations

Textual amendments

F1: Sch. 1 para. 1(2)(c) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 14
F2: Words 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)
F3: Words 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)
F4: Words 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.