After section 23 insert—

“Powers of CIECSS in relation to parent undertakings (England)

23AImprovement plan notice

(1)

The CIECSS may serve an improvement plan notice on a parent undertaking if it has—

(a)

a subsidiary undertaking which meets the requirements of subsection (2);

(b)

two or more subsidiary undertakings which meet the requirements of subsection (3).

(2)

A subsidiary undertaking meets the requirements of this subsection if—

(a)

the subsidiary undertaking is registered under this Part as carrying on two or more establishments or agencies for which the CIECSS is the registration authority, and

(b)

the CIECSS reasonably suspects that there are grounds for cancelling the subsidiary undertaking’s registration in respect of two or more of those establishments or agencies.

(3)

A subsidiary undertaking meets the requirements of this subsection if—

(a)

the subsidiary undertaking is registered under this Part as carrying on one or more establishments or agencies for which the CIECSS is the registration authority, and

(b)

the CIECSS reasonably suspects that there are grounds for cancelling the subsidiary undertaking’s registration in respect of one or more of those establishments or agencies.

(4)

An “improvement plan notice” is a written notice which—

(a)

identifies each subsidiary undertaking which meets the requirements of subsection (2) or (3),

(b)

identifies in the case of each of those subsidiary undertakings—

(i)

the establishments or agencies in respect of which the CIECSS reasonably suspects that there are grounds for cancelling the subsidiary undertaking’s registration, and

(ii)

the issues which have led the CIECSS to have those reasonable suspicions,

(c)

requires the parent undertaking to prepare and submit to the CIECSS an improvement plan,

(d)

specifies the period within which the plan must be submitted, and

(e)

provides information about the possible consequences of not complying with the notice.

(5)

An “improvement plan” is a plan which—

(a)

sets out the action the parent undertaking is proposing to take to address the issues identified in the improvement plan notice,

(b)

specifies the date by which the action will be taken, and

(c)

names an individual who meets the requirements of subsection (6).

(6)

The requirements are—

(a)

the individual has a significant role in the management of the parent undertaking, and

(b)

the individual may reasonably be expected to be in a position to ensure that the parent undertaking complies with the requirement imposed by section 23B(5) (requirement to implement an improvement plan).

(7)

The period mentioned in subsection (4)(d) must not be less than the period of 28 days beginning with the day on which the improvement plan notice is served on the parent undertaking.

(8)

The CIECSS may withdraw an improvement plan notice by serving written notice on the parent undertaking.

(9)

Where the CIECSS serves a notice on a parent undertaking under this section, the CIECSS must also serve a copy of the notice on the subsidiary undertakings identified in the improvement plan notice.

(10)

In this section and sections 23B to 23D, “parent undertaking” and “subsidiary undertaking” have the meanings given by section 1162 of the Companies Act 2006.

23BImprovement plans

(1)

This section applies where a parent undertaking has submitted an improvement plan to the CIECSS.

(2)

If the CIECSS is satisfied that—

(a)

the plan meets the requirements in section 23A(5), and

(b)

the plan will be effective in addressing the issues identified in the improvement plan notice,

the CIECSS must approve the plan; otherwise the CIECSS must reject it giving reasons for doing so.

(3)

The CIESS must—

(a)

serve written notice of the decision on the parent undertaking, and

(b)

serve a copy of that notice on the subsidiary undertakings identified in the improvement plan notice.

(4)

If the CIECSS rejects the improvement plan, the parent undertaking is to be taken as having failed to comply with the improvement plan notice.

(5)

If the CIECSS approves the improvement plan, the parent undertaking must implement it in full.

(6)

If the CIECSS is satisfied that the improvement plan has been implemented in full—

(a)

the CIECSS must serve written notice on the parent undertaking informing it of that fact, and

(b)

the CIECSS must serve a copy of that notice on the subsidiary undertakings identified in the improvement plan notice.

(7)

Subsection (8) applies if the individual named in an improvement plan which has been approved by the CIECSS no longer meets the requirements in section 23A(6).

(8)

The parent undertaking which submitted the plan must—

(a)

modify the plan so as to name an individual who meets those requirements, and

(b)

serve written notice of the modification on the CIECSS.

(9)

A parent undertaking may otherwise modify an improvement plan which has been approved by the CIECSS only if the CIECSS agrees to the modification.

23CCancellation of improvement plan

(1)

The CIECSS may serve a written notice (a “cancellation notice”) on a parent undertaking cancelling an improvement plan which the CIECSS has approved.

(2)

The cancellation notice must specify the date on which the cancellation takes effect (which may be a date before the notice is served).

(3)

If a cancellation notice is served on a parent undertaking, the requirements mentioned in subsection (4) cease to apply to the undertaking (or are to be treated as having ceased to apply to the undertaking) from the date specified in the notice.

(4)

The requirements are—

(a)

the requirement imposed by section 23B(5) (requirement to implement improvement plan);

(b)

the requirement imposed by section 23B(8) (requirement to modify improvement plan to name another senior manager).

(5)

The CIECSS must serve a copy of the cancellation notice on the subsidiary undertakings identified in the improvement plan notice.

23DAppeals relating to decisions under sections 23A and 23B

(1)

A parent undertaking may appeal to the Tribunal against a decision of the CIECSS to—

(a)

serve an improvement plan notice on the parent undertaking, or

(b)

reject an improvement plan submitted by the parent undertaking.

(2)

An appeal under subsection (1) must be brought within the period of 28 days beginning with the decision date.

(3)

The “decision date” means—

(a)

if the appeal is against a decision to serve an improvement plan notice, the day on which the notice is served on the parent undertaking;

(b)

if the appeal is against a decision to reject an improvement plan, the day on which notice of that decision is served on the parent undertaking.

(4)

If an appeal is brought against a decision to serve an improvement plan notice, the requirement to prepare and submit an improvement plan is suspended during the period—

(a)

beginning with the decision date, and

(b)

ending with the day on which the appeal is finally determined or withdrawn.

(5)

But where an improvement plan has been approved under section 23B, such an appeal does not suspend the requirements imposed by—

(a)

section 23B(5) (requirement to implement improvement plan), or

(b)

section 23B(8) (requirement to modify improvement plan to name another senior manager).

(6)

On an appeal against a decision to serve an improvement plan notice, the Tribunal may—

(a)

confirm the decision, or

(b)

direct that it is to cease to have effect.

(7)

On an appeal against a decision to reject an improvement plan, the Tribunal may—

(a)

confirm the decision, or

(b)

direct the CIECSS to retake the decision as to whether to approve or reject the plan.”

In section 21 (appeals to Tribunal), after subsection (5) insert—

“(5A)

Subsection (1) does not apply to a decision of the CIECSS under—

(a)

section 23A(1) (service of improvement plan notices), or

(b)

section 23B(2) (rejection of improvement plans).”