Article 5 Determination by the property commission

(1)

In determining for the purpose of article 3 above the authority to which relevant property should be transferred (or in the making of a direction thereunder, as the case may be), the property commission shall take into account and shall apply, so far as it considers it appropriate in the particular circumstances to do so, the principles set out in paragraph (2) below.

(2)

The principles referred to in paragraph (1) above are—

(a)

that heritable property situated within the area of a disaggregating authority should (save where the property commission considers that such property should transfer to and vest in a joint board, or the Administration, as the case may be) transfer to, and vest in, the authority constituted under section 2 of the 1994 Act within whose area the property is situated;

(b)

that heritable property situated outwith the area of a disaggregating authority should transfer to, and vest in, the authority which, in the opinion of the property commission (having regard in particular to patterns of use prior to 1st April 1996) is likely to make the greatest use of that property on and after that date;

(c)

subject to sub-paragraph (e) below, that moveable property should transfer to (and, where appropriate, be divided between) the authority or authorities which will, on and after 1st April 1996, have the function for the purposes of which that property was used or held immediately before that date and in relation to the area for which that property was so used or held;

(d)

that, where the authority to which the relevant property should be transferred in terms of sub-paragraph (c) above cannot be identified or the application of sub-paragraph (c) above is not appropriate, the destination of moveable property shall be determined taking account of—

(i)

the need to ensure, as far as possible, the continued provision of services after 1st April 1996 and to act fairly as between authorities;

(ii)

the identity of the authority which, on the basis of the pattern of use prior to 1st April 1996, is likely to be the major user of that property after that date;

(iii)

the location of the property immediately before 1st April 1996 and the authority to which the building in which or the land on which it is situated will transfer;

(iv)

the authority or authorities by whom staff who, immediately before 1st April 1996, use the property will be employed;

(v)

any connection between items of property which suggests that those items should be transferred to the same authority; and

(e)

that property consisting of shares (or an interest in shares held by a nominee) in an incorporated company (whether a company within the meaning of the Companies Act 1985^f1 or not) should be transferred to or, as the case may be, divided between—

(i)

where the company is a company whose business relates substantially to the exploitation of buildings or other heritable property, the successor authorities constituted under section 2 of the 1994 Act for the areas within which the heritable property in question is situated;

(ii)

in other cases, the successor authorities constituted under section 2 of the 1994 Act for the areas within which the business of the incorporated company in question is conducted.

Annotations

Footnotes

f1: 1985 c. 6.