Corporate trustees
40.—(1) Article 18 of the Pensions Order (corporate trustees: member-nominated directors) shall be amended in accordance with subsections (2) to (9).
(2) In paragraph (1)—
(a)for the words from “and the employer” to “satisfied” there shall be substituted “and there is no trustee of the scheme who is not a company”;
(b)the words “, subject to Article 19” and in sub-paragraph (b), the words “, and the appropriate rules,” shall cease to have effect; and
(c)in sub-paragraph (a), for “persons selected” there shall be substituted “the selection of persons nominated”.
(3) In paragraph (3)(a), for “in accordance with the appropriate rules” there shall be substituted “as a member-nominated director”.
(4) In paragraph (4), for “the appropriate rules” there shall be substituted “regulations”.
(5) In paragraph (5), after “six years” there shall be inserted “but for a member-nominated director to be eligible for selection again at the end of any period of service as such a director”.
(6) After paragraph (6) there shall be inserted—
“(6A) The arrangements must provide that, where the employer so requires, a person who is not a qualifying member of the scheme must have the employer’s approval to qualify for selection as a member-nominated director.”.
(7) In paragraph (7)—
(a)for “The arrangements must” there shall be substituted
“The arrangements—
(a)must”; and
(b)after “that fact” there shall be inserted
“; and
(b)may provide for a member-nominated director who—
(i)is a qualifying member of one of the following descriptions, that is to say, an active, deferred or pensioner member, and
(ii)ceases (without ceasing to be a qualifying member) to be a qualifying member of that description,
to cease, by virtue of that fact, to be a director”.
(8) For paragraph (8) there shall be substituted—
“(8) Where—
(a)the same company is a trustee of two or more schemes by reference to each of which this Article applies to the company, and
(b)the company does not, in the prescribed manner, elect that this paragraph should not apply,
the preceding provisions of this Article and Article 21(7) shall have effect as if those schemes were a single scheme and the members of each of the schemes were members of that single scheme.”.
(9) After paragraph (8) there shall be added—
“(9) Regulations may make provision in relation to arrangements under this Article—
(a)supplementing the requirements of this Article as to the matters to be contained in the arrangements, and
(b)providing for the manner in which, and the time within which, persons are, for the purposes of the arrangements, to be nominated and selected as member-nominated directors.
(10) This Article does not apply in the case of a trust scheme if the scheme is of a prescribed description.”.
(10) Articles 19 and 20 of that Order (corporate trustees: exceptions and selection, and eligibility, of member-nominated trustees and directors) shall cease to have effect.