1.—(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.