PART 1

SOCIAL CARE
CHAPTER 1

PROVISION OF SOCIAL CARE SERVICES TO CHILDREN: RESTRICTIONS ON PROFIT

Regulation of social care services provided to children

Applications for registration in respect of restricted children’s services
3
1
The 2016 Act is amended as follows.
2
In section 6, after subsection (1) insert—
1A
In the case of a person, other than a local authority, who wants to provide a restricted children’s service, the application must also include such information as may be prescribed to satisfy the Welsh Ministers that the person meets the requirement in section 6A(1).
3
After section 6 insert—

Registration in respect of a restricted children’s service
6A
1
To be registered in respect of a restricted children’s service, a person who is not a local authority must be a not-for-profit entity.
2
For the purposes of this Part, a “not-for-profit entity” is a person that meets conditions 1 and 2 in subsections (3) and (4).
3
Condition 1 is that the person’s objects or purposes primarily relate to—
a
the welfare of children, or
b
such other public good as the Welsh Ministers may prescribe.
4
Condition 2 is that the person is one of the following types of undertaking (as defined in section 6B)—
a
a charitable company limited by guarantee without a share capital,
b
a charitable incorporated organisation,
c
a charitable registered society, or
d
a community interest company limited by guarantee without a share capital.

Registration in respect of a restricted children’s service: definitions
6B
1
The following definitions apply for the purposes of section 6A(4).
2
A “charitable company limited by guarantee without a share capital” is a company—
a
that is registered under the Companies Act 2006 (c. 46) in Wales, England, Scotland or Northern Ireland,
b
whose liability is limited by guarantee and that does not have a share capital, and
c
that is a charity registered under one or more of—
i
the Charities Act 2011 (c. 25);
ii
the Charities and Trustee Investment (Scotland) Act 2005 (asp 10);
iii
the Charities Act (Northern Ireland) 2008 (c. 12).
3
A “charitable incorporated organisation” is an organisation registered under—
a
section 209, 232 or 238 of the Charities Act 2011 or regulations made under section 234 of that Act,
b
section 55, 58 or 60 of the Charities and Trustee Investment (Scotland) Act 2005, or
c
section 111, 114 or 117 of the Charities Act (Northern Ireland) 2008 or regulations made under section 115 of that Act.
4
A “charitable registered society” is—
a
a society that is—
i
a “registered society” within the meaning of section 1(1) of the Co-operative and Community Benefit Societies Act 2014 (c. 14), and
ii
a charity within the meaning of section 1(1) of the Charities Act 2011,
b
a society that is—
i
a “registered society” within the meaning of section 1(1) of the Co-operative and Community Benefit Societies Act 2014, and
ii
a charity registered under the Charities and Trustee Investment (Scotland) Act 2005, or
c
a society that is—
i
a “registered society” within the meaning of section 1A(1) of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24), and
ii
a charity registered under the Charities Act (Northern Ireland) 2008.
5
A “community interest company limited by guarantee without a share capital” is a company—
a
that is registered under the Companies Act 2006 in Wales, England, Scotland or Northern Ireland,
b
whose liability is limited by guarantee and that does not have a share capital, and
c
that is a community interest company under Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27).
6
In subsections (2) and (5)—
a
references to a company’s liability being “limited by guarantee” have the meaning given by section 3(3) of the Companies Act 2006, and
b
a company does not have a share capital if it does not have power under its constitution to issue shares‍.