Office of Public Sector Information

(6)[F4The governing body of each endowment to which this section applies shall make the audited accounts of that endowment] available for public inspection at all reasonable times.

(7)Any provision in a governing instrument referred to in subsection (1) above prescribing the financial year of an endowment shall remain in operation notwithstanding the repeal by the Act of 1962 of section 11(2) of the M2Education (Scotland) Act 1956.

112 Procedure in preparation of reorganisation schemes

(1)Before making a scheme for the reorganisation of any educational endowment [F1an education authority] shall prepare a draft scheme and shall—

(a)send copies of the draft scheme to the governing body of the endowment to which it relates;

[F2(b)give notice of the draft scheme in accordance with subsection (1A) below and cause it to be published in such other manner, if any, as they think fit; and

(c)permit public inspection of the draft scheme at such places and during such times as may be specified in the notice given by them under paragraph (b) above;]

and the governing body of that endowment or any other person interested in the scheme may, not later than the expiry of the period of one month from [F3the first notice of the draft scheme given by the authority under paragraph (b) above], send in writing to the [F4education authority] objections to the draft scheme, or proposed amendments thereto, or both.

[F5(1A)The notice to be given under subsection (1)(b) above—

(a)shall be by way of advertisement in a newspaper circulating in the area in which each educational establishment to which the endowment relates is situated or, where the endowment relates to no particular educational establishment, the area in which the beneficiaries of the endowment are required under its governing instrument to reside or with which they are so required to have some other connection;

(b)shall state that written objections to and proposed amendments of the scheme may be made in the manner specified in subsection (1) above; and

(c)shall state the places and times at which the draft scheme may be examined under subsection (1)(c) above.

(1B)The requirement under subsection (1A) above to give notice of the draft scheme by way of newspaper advertisement shall not apply in relation to an educational endowment of less annual value than £500 if, by giving notice in another manner, the education authority incur less expense.]

(2)If within the period referred to in subsection (1) above no objection and no proposed amendment to the draft scheme is received by [F6them, the education authority may, by resolution of the authority authorising their proper officer to sign the scheme on their behalf,] make the scheme in the terms of the draft scheme [F7of which notice has been given] under subsection (1) above [F8and on doing so shall notify the date of commencement of the scheme to the governing body of the endowment.]

(3)If within the said period objections or proposed amendments to the draft scheme are received by [F9them, the education authority] shall consider those objections and proposed amendments [F10, shall, if any of them were sent by any of the persons mentioned in subsection (7) below, hold a public local inquiry into such of them as are not withdrawn] and may thereafter, if [F11they think] fit, [F12by resolution of the authority authorising their proper officer to sign the scheme on their behalf, make the] scheme in such form as [F11they think] expedient.

[F13(3A)[F14Section 56 of] the M1Local Government (Scotland) Act 1973 shall not apply to the making of a scheme by an education authority under subsection (2) or (3) above.

(3B)The person appointed by the education authority to hold a public local inquiry under subsection (3) above shall not be a member or officer of the authority or a member or employee of the governing body of the endowment to which the scheme relates.

(3C)Without prejudice to their duty to hold a public local inquiry in the circumstances mentioned in subsection (3) above, an education authority may, if they consider it appropriate, hold a public local inquiry into any matter to which they may properly address themselves in the exercise of their functions under this Part of this Act.]

(4)If [F15an education authority make] a scheme under subsection (3) above, [F16they] shall as soon as practicable thereafter—

(a)give to the persons who made the objections or, as the case may be, proposed the amendments to the draft scheme notice in writing of [F17their] decision with respect to those objections or amendments, together with a statement in writing of the reasons for [F17their] decision;

(b)send copies of the scheme to the governing body of the endowment to which it relates;

[F18(c)cause notice of the scheme to be given in accordance with subsection (1A)(a) and (c) above, containing a statement that, unless not later than the expiry of the period of one month from the first such notice a petition or appeal is presented to the Court of Session in accordance with the following provisions of this section, the scheme will come into operation on such date as the notice may specify, being not less than one month after the date of the first such notice.]

[F19(5)If no petition or appeal is presented to the Court of Session in accordance with the following provisions of this section, the scheme shall come into operation on the date specified in the notice under subsection (4)(c) above.

(5A)If a petition or appeal is presented to the Court of Session in accordance with the following provisions of this section and is refused by the Court, the Court shall make such order as it thinks fit as respects the commencement of the scheme.]

(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20

[F21(7)If within the period of one month from the date of the notice given under subsection (4) above a petition or appeal is presented to the Court of Session by any of the persons mentioned below, the scheme referred to in that notice shall thereby be suspended and the Court may amend the scheme and make it as so amended or may make a new scheme and for those purposes the Court—

(a)shall have the like powers as are conferred by this Part of this Act on an education authority regarding schemes for the future government and management of educational endowments, and

(b)may make such orders as it thinks fit as respects notification and commencement of the amended or new scheme.

The persons referred to above are—

(i)the governing body of the endowment to which the scheme relates,

(ii)the council of any district directly affected by the scheme,

(iii)any education authority directly affected by the scheme,

(iv)any ratepayers (not being less than twenty) of any district or place directly affected by the scheme,

(v)any person having a vested interest in the said endowment or any part of it.]

(8)If within the said period an appeal is presented to the Court of Session by—

(a)the governing body of the endowment to which the scheme refers, or any other person directly affected by the scheme, on the ground that the scheme is not within the scope of, or is not made in conformity with, this Part of this Act, or

(b)any person holding any office, place or employment, or receiving any pension, compensation, allowance, bursary or emolument, under or arising out of the endowment to which the scheme relates, on the ground that the scheme does not comply with the provisions of this Part of this Act as to saving or making due compensation for his vested interests,

and the Court of Session decides that the scheme is contrary to law on any of the grounds mentioned in paragraphs (a) and (b) above, the [F22education authority shall rescind their decision to make the scheme but may, if they think fit, make an amended scheme in such form as they think] expedient, and the provisions of subsections (4) to (7) above, and of this subsection, shall apply in relation to an amended scheme [F23made] under this subsection as they apply to a scheme [F23made] under subsection (3) above.

(9)Where [F24an education authority cause] a draft scheme or a scheme to be [F25publicised] under this section, [F26they] shall cause to be prefixed to that draft scheme or scheme a memorandum setting out—

(a)the reasons why, in [F26their] view, the reorganisation of the endowment to which the draft scheme or scheme relates is necessary;

(b)the respects in which the draft scheme or scheme involves any substantial alteration of the purposes to which the said endowment is applied or applicable; and

(c)the reasons for any such alteration;

and for the purposes of the provisions of this section relating to publication, that memorandum shall be deemed to be part of the draft scheme or scheme, as the case may be.

113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

114 Effect of schemes

(1)Any scheme made or [F1given effect to] under the foregoing provisions of this Part of this Act shall F2 have effect in the same manner as if it had been enacted in this Act, and accordingly, from the [F3date of commencement of the scheme], any enactment, letters patent, deed, instrument, trust or direction relating to the subject-matter of the scheme, so far as inconsistent with the provisions thereof, shall cease to have effect.

(2)[F4An instrument containing or giving effect to] a scheme, under this Part of this Act shall [F5, from the date of commencement of the scheme,] be conclusive evidence that that scheme is within the scope of, and was made in conformity with, this Act, and the validity of the scheme shall not [F6, from the said date,] be questioned in any legal proceedings whatever.

[F7(3)Each of the powers to make schemes conferred by this Part of this Act implies power exercisable in the same manner and subject to the same conditions or limitations to revoke, amend or re-enact any scheme made under that power.]

115, 116.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

117 Cost of publishing scheme, etc

The cost of [F1publicising] and circulating any draft scheme, or scheme, or amended scheme, under this Part of this Act shall be paid out of the funds of the endowment or endowments to which the same relates:

F2

[F1118 Information by governing bodies

Every governing body of an endowment to which section 105 of this Act extends shall give such information to the education authority having power under that section to prepare a scheme for the future government and management of the endowment as the authority may from time to time require.]

[F1118A Income plans under schemes

(1)Any provision of a scheme referred to in subsection (2) below which (however expressed) empowers or requires the governing body of the endowment to which the scheme relates—

(a)to prepare and submit for the approval of the Secretary of State a plan, a revised plan or an amendment of a plan for the exercise by the governing body of their functions in relation to the application of the income of the endowment; or

(b)to give effect to such a plan or amendment as approved by the Secretary of State,

shall be of no effect.

(2)This section applies to any scheme made or approved under the Acts of 1928 to 1935, Part VI of the Act of 1946, Part VI of the Act of 1962, or this Part of this Act.]

119 Quorum of governing body

The majority of members of a governing body who are present at a meeting of their body duly constituted shall have power to do anything that may be required to be done by a governing body for the purposes of this Part of this Act:

120 Provision for default of governing body

[F1(1)]If the governing body of any educational endowment [F2to which section 105 of this Act does not extend] fail to give effect to the provisions of any provisional order or of any scheme made or approved under the Act of 1882, the Acts of 1928 to 1935, Part VI of the Act of 1946, Part VI of the Act of 1962 or this Part of this Act [F3prior to the commencement of section 15 of the M1Education (Scotland) Act 1981], it shall be lawful for the Secretary of State, after such inquiry as he shall think proper, to send a requisition to such governing body, requiring them to give effect to the provisions of the provisional order or scheme, and the governing body shall comply with the said requisition within such time as may be specified in the requisition, and, if they fail, may be summarily compelled to do so by the Court of Session, on the application of the Lord Advocate.

[F4(2)In relation to any educational endowment to which section 105 of this Act extends, subsection (1) above shall apply—

(a)with the omission of the words “to which section 105 of this Act does not extend” and the words “prior to the commencement of section 15 of the M2Education (Scotland) Act 1981”; and

(b)with the substitution for the words “Secretary of State after such inquiry as he” of the words “education authority having power under section 105 of this Act to prepare a draft scheme for the future government and management of the endowment, after such inquiry as they”.]

121 Judgment of Court of Session final

In any proceeding before the Court of Session authorised by this Part of this Act—

(a)the judgment or deliverance of the Court [F1other than one giving effect under section 105(4) of this Act to a draft scheme for the future government and management of an endowment or the Carnegie Trust] shall be final and not subject to review; and

(b)the Court shall dispose of all questions of expenses, and may, if they think fit, direct the expenses or any part thereof F2 to be paid out of the funds of the educational endowment to which the proceeding relates: F3

122 Interpretation of Part VI

(1)In this Part of this Act, unless the context otherwise requires—

• “the Act of 1878” means the Endowed Institutions (Scotland) Act 1878;

• “Carnegie Trust” means the property vested in the Carnegie Trustees for the Universities of Scotland;

• “charitable purposes” shall be construed in the same way as if it were contained in the Income Tax Acts;

• “educational endowment” means any endowment which has been applied or is applicable in whole or in part, whether by the declared intention of the founder, or by the consent of the governing body, or in pursuance of any scheme approved under any Act or of any provisional order or by custom or otherwise, to educational purposes;

• “educational purposes” includes—

  (i)

  payments towards the cost of professional training and apprenticeship fees,

  (ii)

  the provision of maintenance, clothing and other benefits, and

  (iii)

  the payment of grants for travel;

• “endowment” means any property, heritable or moveable, dedicated to charitable purposes, but shall not, except with the consent of the governing body, include the funds, whether capital or revenue, of any incorporation or society contributed or paid by the members of such incorporation or society by way of entry moneys or other fixed or stated payments, nor burgess or guildry fines paid to any such incorporation or society, nor funds bequeathed or given to any such incorporation or society for the benefit solely of members or widows or families of members of such incorporation or society;

• “governing body” means the managers, governors or trustees of any endowment or other person having the administration of the revenue thereof;

• “governing instrument” means, with regard to any endowment, the scheme approved under any Act or any provisional order [F1or made under section 17 of the Local Government etc. (Scotland) Act 1994,] in accordance with which the endowment is governed and managed or, where there is no such scheme or provisional order, the deed constituting the endowment;

• “provisional order” means provisional order confirmed by Act of Parliament and provisional order made under the Act of 1878;

• “theological endowment” means an endowment solely or mainly applicable or applied for the purposes of theological instruction or belonging to any theological institution;

• “university endowment” means an endowment vested in, or administered by, or in the gift of any of the universities of Scotland or any of the colleges of such universities.