SCHEDULE 2Enforcement of disclosure requirements

Right to issue restrictions notice1

1

This paragraph applies if—

a

a notice under regulation 10 (duty to investigate) or 11 (duty to keep information up to date) is served by an eligible Scottish partnership on a person who has a relevant interest in the eligible Scottish partnership, and

b

the person fails to comply with that notice within the time specified in it.

2

The eligible Scottish partnership may give the person a notice under this paragraph (a “warning notice”) informing the person that it is proposing to issue the person with a notice (a “restrictions notice”) with respect to the relevant interest.

3

The eligible Scottish partnership may issue the restrictions notice if, by the end of the period of one month beginning with the day on which the warning notice was given—

a

the person has not complied with the notice served under regulation 10 or 11, and

b

the eligible Scottish partnership has not been provided with a valid reason sufficient to justify the person’s failure to comply with the notice served under that regulation.

4

A restrictions notice is issued on a person by sending the notice to the person.

5

The effect of a restrictions notice is set out in paragraph 3.

6

In deciding whether to issue a restrictions notice, the eligible Scottish partnership must have regard to the effect of the notice on the rights of third parties in respect of the relevant interest.