This Order specifies actions which are prescribed for the purposes of section 141(2) of the Learning and Skills Act 2000. No action specified in this Order may be taken by a company to which the Order applies without the written consent of the Secretary of State. It applies to Training and Enterprise Councils (TECs) and Chambers of Commerce, Training and Enterprise (CCTEs), these being companies which fall into the category set out in section 141(1) of that Act. The application of this Order is limited to TECs and CCTEs in England.

The actions prescribed by this Order are changes to contractual terms and conditions of employees and company executives, other than routine increases in salary; any new expenditure in excess of £20,000, any new contractual commitments which extend beyond 25th March 2001; the transfer of any asset of a value in excess of £10,000, other than at full market value; and any transaction or agreement which decreases the fixed or current asset base of the company by more than £10,000 of its net book value. No such action is prescribed, however, if it is carried out or procured by the company after the company has fulfilled all of its contractual obligations under arrangements with the Secretary of State and has discharged all of its financial indebtedness to the Secretary of State.