The National Health Service (Personal Medical Services) (Scotland) Regulations 2001

Qualifying bodies

26.—(1) Where a provider is a qualifying body the agreement shall contain terms providing for the matters set out in the following sub-paragraphs.

(2) The qualifying body shall not carry on any business which it is not required or authorised to carry on by the agreement.

(3) A Health Board which becomes aware of a breach of the term specified in sub-paragraph (2) shall give notice immediately to the provider, requiring that the qualifying body cease, before the end of the period of one month beginning on the day on which the notice is given (“the notice period”) to carry on business other than that required or authorised by the agreement and, if the qualifying body does not cease to carry on other business in accordance with that requirement, the agreement shall (without further notice) terminate.

(4) No member of the qualifying body shall transfer or grant an interest (whether legal or beneficial) of any kind in any share in that body to any person other than a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act.

(5) A Health Board which becomes aware of a breach of the term specified in sub-paragraph (4) shall give notice immediately to the provider, requiring that the entire legal and beneficial interest in the share in question be vested, before the end of the period of one month beginning on the day on which the notice is given (“the notice period”), to a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act and, if the share (or, as the case may be, the interest granted in the share) is not transferred in accordance with that requirement, the agreement shall terminate without further notice.

(6) The agreement shall terminate immediately if–

(a) all the shares in the qualifying body are transmitted to a personal representative of a member of that body;

(b) the personal representative is not a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act; and

(c) there are no other parties to the agreement, apart from the Health Board.

(7) Where–

(a) fewer than 100% of the shares in the qualifying body are transmitted to a personal representative of a member of that body who is not a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act, or

(b) all the shares are transmitted to such a personal representative, but there is another party to the agreement apart from the Health Board and the qualifying body,

the Health Board shall give notice immediately to the provider, requiring that the share or shares which have been transmitted to a member’s personal representative be transferred or transmitted, before the end of the period of two months beginning with the day on which the member of the qualifying body died (“the notice period”), to a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act and, if the shares are not transferred or transmitted in accordance with that requirement, the agreement shall terminate without further notice.

(8) Where an NHS trust which was a member of the qualifying body is dissolved by the Scottish Ministers–

(a) if the NHS trust was the sole member of the qualifying body and the qualifying body was the only party to the agreement (other than the Health Board), the agreement shall terminate immediately;

(b) except as provided in paragraph (a) above, the Health Board shall give notice immediately to the provider, requiring that the share or shares which were held by the NHS trust are transferred, before the end of the period of one month beginning on the day on which the notice is given (“the notice period”), to a person specified in paragraph (a), (b) or (e) of section 17D(1) of the 1978 Act and, if the shares are not transferred in accordance with that requirement, the agreement shall terminate without further notice.

(9) Where the qualifying body is wound up under Part IV of the Insolvency Act 1986(1), or is subject to an administration order under Part II of that Act, the agreement shall terminate immediately.

(10) The provider shall immediately give notice in writing to the Health Board of the transfer or transmission of any share in the qualifying body.

(1)

1986 c. 45.