Local Government Finance Act 1982

9 Prohibition orders
1 Where on 29th March 1996 a prohibition order under section 25A of the 1982 Act (power of auditor to issue prohibition order) has effect in relation to the accounts of an old authority—
(a) the auditor in relation to the accounts of that authority shall, on that date, serve a copy of the order on the successor authority; and
(b) the prohibition order shall have effect on and after 1st April 1996 for the purposes of Part III of the 1982 Act as if it had been issued in relation to the accounts of the successor authority.
Section 25A was inserted by Schedule 4 to the Local Government Act 1988 c. 9.
2 An auditor in relation to the accounts of a successor authority may on or after 1st April 1996 issue a prohibition order under that section if he has reason to believe that, before 1st April 1996, the old authority or any officer of the old authority—
(a) has made a decision which involves or would involve the successor authority incurring expenditure which is unlawful, or
(b) was about to take or has taken a course of action which, if pursued by the successor authority to its conclusion, would be unlawful and likely to cause a loss or deficiency.

10 Local government electors
Any reference in Part III of the 1982 Act to a local government elector shall, on and after 1st April 1996, in relation to the accounts of an old authority for a preceding year, be treated as a reference to a local government elector for that part of any successor authority’s area which was included in the area of the old authority.