Section 52 - Grounds for giving notice
119.This section inserts a new section 50C into the 1996 Act to specify the grounds on which the Welsh Ministers may give an enforcement notice to a RSL. Subsection (1) of new section 50C specifies that the Welsh Ministers must be satisfied that one of the cases for issuing an enforcement notice applies and that an enforcement notice is the appropriate intervention power to use, whether alone or as a potential precursor to further action.
120.Subsections (2) to (10) specify the cases that may form the basis for giving an enforcement notice as follows:
that a RSL has failed to meet a standard established by the Welsh Ministers;
that the affairs of a RSL have been mismanaged;
that the RSL has failed to comply with an earlier enforcement notice;
that the RSL has failed to publish information in accordance with a requirement under sections 50I(3) or 50Q(3);
that it is required to protect the interests of tenants;
that it is necessary to protect the assets of a RSL;
that a RSL has failed to comply with an undertaking that it has given to the Welsh Ministers;
that an offence under Part 1 of the 1996 Act has been committed by a RSL;
that a RSL has failed to comply with a recommendation made by the Public Service Ombudsman for Wales;
121.Subsection (11) provides that where the Welsh Ministers are satisfied that an offence under Part 1 of the 1996 Act has been committed in respect of a RSL but by another person (e.g. a member or employee), the Welsh Ministers may serve an enforcement notice on the other person rather than the RSL and, in such cases, references in Chapter 4A of the 1996 Act to the RSL should be read as references to that person.
