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PART IIOccupational Pensions

Member-nominated trustees and directors

Exceptions

17.—(1) Article 16 does not apply to a trust scheme if—

(a)a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the trustees of the scheme,

(b)the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and

(c)such other requirements as may be prescribed are satisfied.

(2) Where—

(a)by virtue of paragraph (1), Article 16 does not apply to a trust scheme, and

(b)the employer’s proposal was for the adoption of new arrangements which, in consequence of paragraph (1)(b), are adopted,

the trustees shall secure that the proposed arrangements are made and implemented.

(3) For the purposes of this Article, the arrangements for selecting the trustees of a scheme include all matters relating to the continuation in office of the existing trustees, the selection or appointment of new trustees and the terms of their appointments and any special rules for decisions to be made by particular trustees.

(4) Article 16 does not apply to a trust scheme if—

(a)the trustees of the scheme consist of all the members, or

(b)it falls within a prescribed class.

(5) Article 10 applies to any employer who—

(a)makes such a proposal as is referred to in paragraph (1)(a), but

(b)fails to give effect to the statutory consultation procedure.