After paragraph 15G of Schedule 1 to the Housing Act 1996 insert—
15H(1)This paragraph applies if as a result of an inquiry under paragraph 20 or an audit under paragraph 22, the Welsh Ministers are satisfied that—
(a)there has been misconduct or mismanagement in the affairs of a registered social landlord which is an industrial and provident society, or
(b)the management of the affairs of a registered social landlord which is an industrial and provident society would be improved if the landlord were amalgamated with another industrial and provident society.
(2)But this paragraph does not apply where—
(a)the misconduct or mismanagement relates only to the registered social landlord’s provision of housing in England, or
(b)the amalgamation would improve the management of the registered social landlord’s affairs only in relation to the provision of housing in England.
(3)The Welsh Ministers may make and execute on behalf of the society an instrument providing for the amalgamation of the society with another industrial and provident society.
(4)An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a special resolution by S1 under section 50 of the Industrial and Provident Societies Act 1965 (amalgamation of societies by special resolution).
(5)A copy of an instrument must be sent to and registered by the Financial Services Authority.
(6)An instrument does not take effect until the copy is registered.
(7)The copy must be sent for registration during the period of 14 days beginning with the date of execution, but a copy registered after that period is valid.
(8)Any body created by virtue of an amalgamation must be registered as a social landlord by the Welsh Ministers, and pending registration is to be treated as registered.”