Part 2Community interest companies
Supervision by Regulator
I145Appointment of director
1
The Regulator may by order appoint a director of a community interest company.
2
The person appointed may be anyone whom the Regulator thinks appropriate, other than a member of the Regulator’s staff.
3
A person may be appointed as a director of a company under this section—
a
whether or not the person is a member of the company, and
b
irrespective of any provision made by the memorandum or articles of the company or a resolution of the company in general meeting.
4
An order appointing a person to be a director of a company under this section must specify the terms on which the director is to hold office; and those terms have effect as if contained in a contract between the director and the company.
5
The terms specified must include the period for which the director is to hold office, and may include terms as to the remuneration of the director by the company.
6
A director appointed under this section has all the powers of the directors appointed by the company (including powers exercisable only by a particular director or class of directors).
7
A director appointed under this section may not be removed by the company, but may be removed by the Regulator at any time.
8
Where—
a
a person is appointed to be a director of the company under this section, or
b
a person so appointed ceases to be a director of the company,
the obligation which would otherwise be imposed on the company under section 288(2) of the Companies Act 1985 (c. 6) (requirement that company notify change among directors to registrar) is instead an obligation of the Regulator.
9
But if subsection (10) applies, section 288(2) applies as if the period within which the Regulator must send a notification to the registrar of companies is 14 days from the date on which the Regulator receives notification under that subsection.
10
Where a person appointed to be a director of the company under this section ceases to be a director of the company (otherwise than by removal under subsection (7)), the company must give notification of that fact to the Regulator in a form approved by the Regulator before the end of the period of 14 days beginning with the date on which the person ceases to be a director.
11
If the company fails to comply with subsection (10) it commits an offence.
12
A person guilty of an offence under subsection (11) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
13
The company may appeal to the Appeal Officer against an order under this section.