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PART IIOccupational Pensions

Member-nominated trustees and directors

Member-nominated trustees and directors: supplementary

21.—(1) If, in the case of a trust scheme—

(a)such arrangements as are required by Article 16(1) or 17(2) to be made have not been made, or

(b)arrangements required by Article 16(1) or 17(2) to be implemented, or the appropriate rules, are not being implemented,

Articles 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.

(2) If, in the case of a company which is a trustee of a trust scheme—

(a)such arrangements as are required by Article 18(1) or 19(2) to be made have not been made, or

(b)arrangements required by Article 18(1) or 19(2) to be implemented, or the appropriate rules, are not being implemented,

Articles 3 and 10 apply to the company.

(3) Regulations may make provision for determining the time by which—

(a)such arrangements (or further arrangements) as are referred to in Article 16(1), 17(2), 18(1) or 19(2) are required to be made, and

(b)trustees or directors are required to be selected in pursuance of the appropriate rules.

(4) Regulations may make provision for determining when any approval under the statutory consultation procedure—

(a)of the appropriate rules, or

(b)of arrangements for selecting the trustees of a scheme, or the directors of a company, given on a proposal by the employer

is to cease to have effect.

(5) The Department may by regulations modify Articles 16 to 20 and this Article in their application to prescribed cases.

(6) In Articles 17 to 20 and this Article, “the statutory consultation procedure” means the prescribed procedure for obtaining the views of members of schemes.

(7) For the purposes of this and those Articles—

(a)approval of the appropriate rules, or of arrangements, under the statutory consultation procedure must be given by—

(i)the active and pensioner members of the scheme, and

(ii)if the trustees so determine, such deferred members of the scheme as the trustees may determine,

taken as a whole, and

(b)references to the approval of the appropriate rules, or of arrangements under Article 17 or 19, by any persons under the statutory consultation procedure are to prescribed conditions in respect of those rules or, as the case may be, arrangements being satisfied in the case of those persons in pursuance of the procedure, and those conditions may relate to the extent to which those persons have either endorsed, or not objected to, the rules or, as the case may be, arrangements.