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(1)Where it comes to the attention of a local authority in England that—
(a)a relevant entity which is connected with the authority meets the conditions referred to in section 36(4)(b),
(b)a relevant entity which is connected with the authority has ceased to meet those conditions, or
(c)a relevant entity which meets those conditions has ceased to be connected with the local authority,
the authority must notify the entity and the Audit Commission accordingly.
(2)Where it comes to the attention of a local authority in Wales that—
(a)a relevant entity which is connected with the authority meets the conditions referred to in section 36(5)(b),
(b)a relevant entity which is connected with the authority has ceased to meet those conditions, or
(c)a relevant entity which meets those conditions has ceased to be connected with the local authority,
the authority must notify the entity and the Auditor General for Wales accordingly.
(3)Notification under this section must be within the period of 21 days beginning with the day on which the matter comes to the attention of the local authority.
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