Local Government Act 1988

4 (1) Section 98 (directions to dispose of land) shall be amended as follows.

(2) After subsection (2) there shall be inserted—

“(2A) A direction under this section may include provision that no disposal of an interest to which the direction relates shall, while the direction remains unrevoked, be made in favour of a person or body who—

(a) is specified, or is of a description specified, in the direction, and

(b) is at the date the disposal is proposed to be made associated with the body to whom the direction is given.”

(3) After subsection (5) there shall be inserted—

“(6) In subsection (2A) above references to a disposal of an interest include references to a contract to dispose of an interest, and references to making a disposal include references to entering into such a contract.

(7) For the purposes of subsection (2A) above a person is associated with a body if (but only if)—

(a) he is a member of the body or of a subsidiary of the body, or

(b) he is a nominee of the body or of a subsidiary of the body.

(8) For the purposes of subsection (2A) above a body is associated with another body if (but only if)—

(a) the other body, or a subsidiary of the other body, is a member of it,

(b) any of its members is also a member of the other body or of a subsidiary of the other body, or

(c) any of its members is a nominee of the other body or of a subsidiary of the other body.

(9) Notwithstanding section 100(1) below, in subsections (7) and (8) above “subsidiary” has the same meaning as in section 736(1) of the Companies Act 1985.”

(4) No direction may be varied under section 98(3) so as to include provision mentioned in section 98(2A) if the direction sought to be varied was given before the coming into force of this paragraph.