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Housing (Amendment) (Scotland) Act 2018

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7Registered social landlord becoming a subsidiary of another body

(1)The Housing (Scotland) Act 2010 is further amended as follows.

(2)For section 104A (registered social landlord becoming a subsidiary of another body) substitute—

104ARegistered social landlord becoming a subsidiary of another body

(1)This section applies where a registered social landlord which is a registered society or a registered company proposes to enter into an arrangement under which the landlord will become a subsidiary of a body of which it is not currently a subsidiary.

(2)Subject to subsection (5)—

(a)the registered social landlord must comply with sections 115 to 120 (as applied by subsection (3)) in relation to the arrangement, and

(b)the arrangement has effect only if the conditions in subsection (4) are met.

(3)Sections 115 to 120 apply in relation to a proposed arrangement to which this section applies as they apply in relation to a proposed disposal to which section 107(4) applies.

(4)The conditions are that, before the arrangement was completed—

(a)the registered social landlord complied with sections 115 and 115A(1) (as applied by subsection (3)), and

(b)a majority of tenants—

(i)voting in a ballot conducted under section 115(1)(a) wish the arrangement to proceed, or, as the case may be,

(ii)whose written agreement to the arrangement was sought under section 115A(1)(b) have given that agreement.

(5)The Regulator must determine that subsections (2) and (3) are not, or are to cease, to apply in relation to an arrangement where the Regulator considers that—

(a)the registered social landlord’s viability is in jeopardy for financial reasons,

(b)a person could take a step in relation to the landlord which would require to be notified to the Regulator under section 73, and

(c)the determination under this subsection would substantially reduce the likelihood of a person taking such a step.

(6)The registered social landlord must, as soon as reasonably practicable after the arrangement takes effect (and no later than 28 days after that event), give notice of the arrangement to the Regulator..

(3)Sections 124A and 124B are repealed.

(4)In section 165 (interpretation), in the definition of “subsidiary”, for “Co-operative and Community Benefit Societies and Credit Unions Act 1968 (c.55)” substitute “Co-operative and Community Benefit Societies Act 2014”.

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