Section 29 - Official Property Holder; and Schedule 5 - Official Property Holder for Community Interest Companies
205.This section creates the office of Official Property Holder, which is to be filled by one of the Regulator’s staff. Provisions relating to this office are set out in Schedule 5. The Official Property Holder's functions are as set out in the Act or any other legislation (subsection (3)). The Official Property Holder’s role is to hold property where the Regulator has made an order under section 48(1) vesting that property in the Official Property Holder, so as to safeguard it for the community interest.
206.Subsection (4) gives effect to Schedule 5. Schedule 5 sets out the Official Property Holder’s status, his relationship with the Regulator, his financing arrangements and his reporting requirements (paragraphs 1 to 3 and 5 to 6). Paragraph 4 provides that the Official Property Holder shall hold property as a trustee. The Official Property Holder will hold the property vested in him on trust for its rightful owner. The Official Property Holder may release or deal with property that he holds so as to give effect to the rights of third parties in that property, or to comply with the request of various office-holders appointed under insolvency legislation in respect of the community interest company. Otherwise the Official Property Holder may only release or deal with the property in accordance with the directions of the Regulator. The general duties and requirements of trust law will apply to the Official Property Holder in his capacity as a trustee of the property vested in him, subject to the provisions of the Act.
