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(7) An agreement under subsection (5) may provide for the property to be used for the purposes of the school acquiring grant-maintained status on such terms as may be specified in or determined in accordance with the agreement; and directions under subsection (6)—

(a) may confer any rights or impose any liabilities that could have been conferred or imposed by such an agreement, and

(b) shall have effect as if contained in such an agreement.

(8) For the purposes of this section, any interest in a dwelling-house which, immediately before the date of implementation of the proposals, is used or held by a local authority for occupation by a person employed to work at the school shall be treated as an interest used or held for the purposes of the school.

(9) References in this section to liabilities incurred by a local authority shall not be read as including liabilities of such an authority to make payments to or in respect of any person in pursuance of any duty imposed on the authority under any statutory provision.

(10) This section is subject to section 198 of the [1988 c. 40.] Education Reform Act 1988 (which with Schedule 10 to that Act makes further provision in relation to transfers of property, rights and liabilities), and references in that Schedule as applied by virtue of this subsection to the transfer date are to the date of implementation of the proposals.

202 Transfer of staff

(1) This section applies to any school where proposals for acquisition of grant-maintained status have been approved in relation to the school; and, subject to subsection (3), applies to any person who—

(a) if the school is an aided school, is immediately before the date of implementation of the proposals employed by the governing body, or

(b) immediately before the date of implementation of the proposals—

(i) is employed by the local education authority to work solely at the school, or

(ii) is employed by the local education authority to work at the school and is designated for the purposes of this section by an order made by the Secretary of State.

(2) A person employed by a local education authority in connection with the provision of meals shall not be regarded for the purposes of subsection (1)(b) as employed to work solely at a school unless the meals are provided solely for consumption by persons at the school.

(3) This section does not apply to—

(a) any person employed as mentioned in subsection (1) whose contract of employment terminates on the day immediately preceding the date of implementation of the proposals, or

(b) any person employed as mentioned in subsection (1)(b) who before that date—

(i) has been appointed or assigned by the local education authority to work solely at another school as from that date, or

(ii) has been withdrawn from work at the school with effect as from that date.

(4) A person who before the date of implementation of the proposals has been appointed or assigned by the local education authority to work at the school as from that date shall be treated for the purposes of this section as if he had been employed by the authority immediately before that date to do such work at the school as he would have been required to do on or after that date under his contract of employment with the authority.

(5) In subsections (6) and (7) “former employer”—

(a) in relation to a person to whom this section applies by virtue of subsection (1)(a), means the governing body of the school immediately before the date of implementation of the proposals, and

(b) in relation to a person to whom this section applies by virtue of subsection (1)(b), means the local education authority.

(6) The contract of employment between a person to whom this section applies and his former employer shall have effect from the date of implementation of the proposals as if originally made between him and the governing body of the grant-maintained school.

(7) Without prejudice to subsection (6)—

(a) all the former employer’s rights, powers, duties and liabilities under or in connection with the contract of employment shall by virtue of this section be transferred to the governing body of the grant-maintained school on the date of implementation of the proposals, and

(b) anything done before that date by or in relation to the former employer in respect of that contract or the employee shall be deemed from that date to have been done by or in relation to that governing body.

(8) Subsections (6) and (7) are without prejudice to any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions, but no such right shall arise by reason only of the change in employer effected by this section.

(9) An order under this section may designate a person either individually or as a member of a class or description of employees.

Effect of pending procedure for acquisition of grant-maintained status on property disposals, etc.

203 “Pending” procedure for acquisition of grant-maintained status

(1) For the purposes of this Chapter the procedure for acquisition of grant-maintained status is pending in relation to a school when it has been initiated in relation to the school on any occasion and not terminated (as initiated on that occasion).

(2) For those purposes, that procedure is to be regarded as initiated in relation to a school on any occasion—

(a) on receipt by the local education authority of notice of a meeting of the governing body at which a motion for a resolution to hold a ballot of parents on the question whether grant-maintained status should be sought for the school is to be considered (not being a case falling within section 186(3)), or

(b) where the governing body have received a request under subsection (1) of section 187, on receipt by the local education authority of notice under subsection (3)(b) of that section.

(3) For those purposes, that procedure, as initiated on any occasion, is to be regarded as terminated—

(a) (when initiated as mentioned in subsection (2)(a)) if—

(i) the meeting is not held,

(ii) the meeting is held but the motion is not moved or, though the motion is moved, the resolution is not passed, or

(iii) the resolution is passed but the result of the ballot to which the notice under section 186(1)(b) relates does not show a majority in favour of seeking grant-maintained status for the school;

(b) (when initiated as mentioned in subsection (2)(b)) if the result of the ballot to which the notice under section 187(3)(b) relates does not show a majority in favour of seeking grant-maintained status for the school;

(c) if—

(i) proposals which by reference to the result of a ballot to which a notice under section 186(1)(b) or 187(3)(b) relates are required to be published under section 193, or

(ii) any proposals required in substitution for those proposals,

are rejected by the Secretary of State or withdrawn; or

(d) on the date of implementation of such proposals.

(4) Where section 191 applies in the case of such a ballot, the references in subsection (3) above to the result of that ballot shall be read as references to the result of the second ballot required by that section.

(5) The reference in subsection (3) above to proposals required in substitution for any proposals (“the original proposals”) required to be published by reference to the result of a ballot is to any proposals required to be published by virtue of section 194(1) or (3) on withdrawal or (as the case may be) rejection of—

(a) the original proposals, or

(b) any further proposals required to be published by virtue of section 194(1) or (3) in respect of the school without a further ballot.

(6) Proposals published under section 193 shall not be treated for the purposes of subsection (3)(c) as rejected in any case where the Secretary of State imposes a requirement under section 194(3) or as withdrawn in any case where he imposes a requirement under section 194(1) for the publication of further proposals.

204 Control of disposals of land

(1) During any period when the procedure for acquisition of grant-maintained status is pending in relation to a school, a local authority shall not—

(a) dispose of any land used wholly or partly for the purposes of the school, or

(b) enter into a contract to dispose of any such land,

except with the required consent.

(2) Subsection (1) does not apply in relation to a disposal which is made in pursuance of a contract entered into, or an option granted, before the procedure for acquisition of grant-maintained status was initiated in relation to the school.

(3) Where proposals for acquisition of grant-maintained status are approved, the procedure for acquisition of grant-maintained status is not to be treated as terminated for the purposes of this section and section 205 in relation to any land, where agreement is required to be reached under paragraph 2(1) of Schedule 10 to the [1988 c. 40.] Education Reform Act 1988 (identification of property, etc.) on any matter relating to that land, until the date on which that matter is finally determined.

(4) In the case of a disposal made or contract entered into after proposals for acquisition of grant-maintained status have been approved, “the required consent”—

(a) (if it is agreed between the local authority and the new governing body that the value of the land in question does not exceed £6,000) is the consent of the new governing body, and

(b) (if paragraph (a) does not apply) is the consent of both the new governing body and the Secretary of State.

(5) In any other case “the required consent” for any proposed disposal (and for any contract to make it) is the consent of both the existing governing body and the Secretary of State.

(6) A disposal or contract shall not be invalid or void by reason only that it has been made or entered into in contravention of this section; and (subject to section 205) a person acquiring land, or entering into a contract to acquire land, from a local authority shall not be concerned to enquire whether any consent required by this section has been given.

(7) This section has effect notwithstanding anything in section 123 of the [1972 c. 70.] Local Government Act 1972 (general power to dispose of land) or in any other enactment; and the consent required by this section shall be in addition to any consent required by subsection (2) of that section or by any other enactment.

(8) In this section and section 205—

(a) references to disposing of land include granting or disposing of any interest in land, and

(b) references to entering into a contract to dispose of land include granting an option to acquire land or such an interest.

(9) Where a proposed disposal forms part of a proposed series of transactions, all disposals forming part of that series shall be treated as one disposal for the purposes of this section.

(10) The Secretary of State may by order substitute for the sum specified in subsection (4) (whether as originally enacted or as previously amended by an order under this subsection) such sum as may be specified in the order.

205 Wrongful disposals of land

(1) This section applies where—

(a) proposals for acquisition of grant-maintained status in respect of a school have been approved, and

(b) a local authority have made a disposal, or have entered into a contract, in contravention of section 204(1).

(2) In the case of a contract which consists of granting an option to acquire any land or interest in land, the Education Assets Board may by notice in writing served on the option holder repudiate the option at any time before it is exercised.

(3) In the case of a contract to dispose of any land or to grant or dispose of any interest in land, the Education Assets Board may by notice in writing served on the other party to the contract, at any time before the conveyance or grant of the land or any interest in land to which it relates is completed or executed, repudiate the contract.

(4) A repudiation under subsection (2) or (3) shall have effect—

(a) where it is made after the date of implementation of the proposals, as if the local authority (and not the governing body) were party to the contract, and

(b) as if the repudiation were made by the local authority.

(5) In the case of a disposal which consists in granting or disposing of any interest in land (whether or not in pursuance of any earlier contract falling within subsection (2) or (3)) the Education Assets Board may be authorised by the Secretary of State to purchase compulsorily the interest in land which was the subject of the disposal.

(6) The [1981 c. 67.] Acquisition of Land Act 1981 shall apply in relation to the compulsory purchase of land under subsection (5) as if references in sections 12 and 13 of that Act to every owner of the land included references to the local authority concerned.

(7) On completion of a compulsory purchase under that subsection of any interest in land, the Education Assets Board shall convey that interest to the governing body incorporated under Chapter II.

(8) Where the Education Assets Board acquire any interest in land by a compulsory purchase under subsection (5) the Board shall be entitled to recover from the local authority concerned an amount equal to the aggregate of—

(a) the amount of compensation agreed or awarded in respect of that purchase, together with any interest payable by the Board in respect of that compensation in accordance with section 11 of the [1965 c. 56.] Compulsory Purchase Act 1965 or section 52A of the [1973 c. 26.] Land Compensation Act 1973, and

(b) the amount of the costs and expenses incurred by the Board in connection with the making of the compulsory purchase order.

(9) Section 204(8) applies for the purposes of this section.

206 Control of contracts

(1) Where the procedure for acquisition of grant-maintained status is pending in relation to any school, this section applies to any contract which, if the proposals for acquisition of grant-maintained status were implemented, would or might bind the governing body incorporated under Chapter II.

(2) Except with the appropriate consent, a local authority shall not enter into a contract to which this section applies.

(3) In the case of a contract entered into after the proposals have been approved by the Secretary of State, “the appropriate consent” is that of the new governing body.

(4) In relation to any other contract, “the appropriate consent” is—

(a) the consent of the existing governing body, and

(b) if (on the assumption set out in subsection (1)) the contract will require the governing body incorporated under Chapter II to make payments amounting in aggregate to £15,000 or more, the consent of the Secretary of State.

(5) Any consent for the purposes of this section may be given either in respect of a particular contract or in respect of contracts of any class or description and either unconditionally or subject to conditions.

(6) A contract shall not be void by reason only that it has been entered into in contravention of this section and (subject to section 207) a person entering into a contract with a local authority or governing body shall not be concerned to enquire whether any consent required by this section has been given or any conditions of such a consent have been complied with.

(7) Where there is an obligation under a contract to which this section applies to provide any benefit other than money, subsection (4)(b) shall apply as if the obligation were to pay a sum of money corresponding to the value of the benefit to the recipient.

(8) This section does not apply to—

(a) a works contract (within the meaning of Part III of the [1980 c. 65.] Local Government, Planning and Land Act 1980) which is entered into in accordance with section 7 of that Act,

(b) a works contract (within the meaning of Part I of the [1988 c. 9.] Local Government Act 1988) which is entered into in accordance with section 4 of that Act,

(c) a contract to dispose of land (within the meaning of section 204) or to grant an option to acquire land or an interest in land, or

(d) a contract of employment.

(9) The Secretary of State may by order substitute for the sum specified in subsection (4) (whether as originally enacted or as previously amended by an order under this subsection) such sum as may be specified in the order.

207 Wrongful contracts

(1) This section applies where—

(a) proposals for acquisition of grant-maintained status in respect of a school have been approved, and

(b) a local authority have entered into a contract to which section 206 applies in contravention of that section.

(2) The Education Assets Board may by notice in writing served on the other party to the contract repudiate the contract at any time before it is performed.

(3) A repudiation under subsection (2) shall have effect—

(a) where it is made after the date of implementation of the proposals, as if the local authority (and not the governing body) were party to the contract, and

(b) as if the repudiation were made by the local authority.

208 Restriction on change of purpose for which property used or held

(1) During any period when the procedure for acquisition of grant-maintained status is pending in relation to a school, a local authority shall not, in relation to any land or other property of the authority used or held for the purposes of the school, take without the required consent any action by which the land or other property ceases to any extent to be so used or held.

(2) In the case of anything done after proposals for acquisition of grant-maintained status have been approved, “the required consent” is that of the new governing body.

(3) In any other case “the required consent” is that of both the existing governing body and the Secretary of State.

(4) If in the case of any school—

(a) proposals for acquisition of grant-maintained status are approved, and

(b) a local authority have, in relation to any property, taken any action in contravention of subsection (1),

the provisions relating to the transfer of property shall have effect as if, immediately before the date of implementation of the proposals in relation to the school, the property were used or held by the authority for the purposes for which it was used or held when the procedure for acquisition of grant-maintained status was initiated.

(5) In this section—

(a) “the provisions relating to the transfer of property” means section 201 above and section 198 of, and Schedule 10 to, the [1988 c. 40.] Education Reform Act 1988, and

(b) the references to taking action include appropriating property for any purpose.

209 Restriction on staff changes

(1) During any period when the procedure for acquisition of grant-maintained status is pending in relation to a school, the local education authority shall not do any of the things mentioned in subsection (2) without the required consent.

(2) Those things are—

(a) the appointment of a person to fill a vacancy in a post which is part of the complement of the school or to work solely at the school in any other post,

(b) the dismissal (otherwise than under section 143(6) or 144(3) (special provisions as to religious education in voluntary schools)) of a person to whom subsection (3) applies, and

(c) the withdrawal of such a person from work at the school (otherwise than by dismissing him).

(3) This subsection applies to any person who is employed—

(a) in a post which is part of the complement of the school, or

(b) to work solely at the school in any other post.

(4) The references in this section to the complement of the school are to the complement of teaching and non-teaching posts determined by the local education authority for the school under section 133(1) to (3) (determination of staff complement for schools).

(5) In the case of anything done after proposals for acquisition of grant-maintained status have been approved, “the required consent” is that of the new governing body.

(6) In any other case “the required consent” is that of both the existing governing body and the Secretary of State.

Supplementary

210 Supplementary provisions about transfers

(1) No duty of a local education authority under section 60(2) or (as the case may be) 61(2) to convey their interest in any site or buildings to the trustees of a voluntary school shall be affected by the school subsequently becoming a grant-maintained school.

(2) Where such a duty is continued by virtue of subsection (1), then, in connection with the site in question, sections 60(2) to (7), 61(2) and (3) and 62 shall continue to apply after the school becomes a grant-maintained school as if it were a controlled school or, as the case may be, an aided or special agreement school.

(3) Where any such duty as is referred to in subsection (1), or imposed by section 70(1), applies in relation to a school, then—

(a) if it applies immediately before the date of implementation of proposals for acquisition of grant-maintained status, section 201(1)(a) shall not apply to, or to any interest in, the site or buildings or, as the case may be, the premises to be conveyed, and

(b) if it applies at a time when the procedure for acquisition of grant-maintained status is pending, section 204 shall not apply to disposing, or entering into a contract to dispose, of the site or buildings or, as the case may be, the premises to be conveyed.

(4) Where immediately before the date of implementation of proposals for acquisition of grant-maintained status there is an agreement relating to any site or buildings made under section 61(4) or (5), section 201(1)(a) shall not apply to any rights or liabilities of any local authority under the agreement; and any directions given before that date under section 61(6), so far as they relate to the governing body of the school, shall have effect on or after that date as if they related to the governing body incorporated under section 195.

Chapter IV Establishing new grant-maintained schools

Proposals for establishment of new grant-maintained school

211 Proposals by funding authority

(1) This section has effect in respect of the area of a local education authority if an order under section 27(1) applies to the area.

(2) The funding authority may establish grant-maintained schools for the purpose of providing relevant education.

(3) Where the funding authority intend to establish a grant-maintained school, they shall—

(a) publish proposals for that purpose in such manner as may be prescribed, and

(b) submit a copy of the published proposals to the Secretary of State.

(4) Before publishing any proposals under this section the funding authority shall consult such persons as appear to them to be appropriate; and in discharging their duty under this subsection the funding authority shall have regard to any guidance given to them from time to time by the Secretary of State.

212 Proposals by promoters

(1) Where any persons (referred to in this Part as “promoters”) propose to establish a grant-maintained school, they shall—

(a) publish proposals for that purpose in such manner as may be prescribed, and

(b) submit a copy of the published proposals to the Secretary of State.

(2) Before publishing any proposals under this section the promoters shall consult—

(a) the funding authority, and

(b) such other persons as appear to them to be appropriate;

and in discharging their duty under this subsection the promoters shall have regard to any guidance given from time to time by the Secretary of State.

(3) A local education authority may not establish any grant-maintained school.

213 Provisions supplementary to sections 211 and 212

(1) Part II of Schedule 20 has effect for the purpose of supplementing sections 211 and 212.

(2) Subsection (3) applies where promoters propose to establish a grant-maintained school in place of an existing independent school which it is proposed to discontinue on or before the date of implementation of the proposals.

(3) Where this subsection applies, the proposals published by the promoters under section 212 shall, in addition to the matters required to be specified by virtue of paragraph 7 of Schedule 20—

(a) specify any arrangements proposed to be made by the promoters for land and other property held for the purposes of the existing independent school to be held for the purposes of the grant-maintained school, and

(b) state whether there is a trust deed or other instrument relating to the existing independent school.

(4) References in this Part to proposals published under section 211 or 212 are, in any case where the Secretary of State has modified such proposals in pursuance of this Part, references to the proposals as so modified.

(5) No proposals may be published under section 211 or 212 for a school which may provide any education which is neither primary nor secondary education unless it is—

(a) part-time education suitable to the requirements of persons of any age over compulsory school age, or full-time education suitable to the requirements of persons who have attained the age of 19, or

(b) part-time education suitable to the requirements of junior pupils.

Approval and implementation of proposals

214 Approval, adoption or rejection of proposals

(1) Proposals published under section 211 require the approval of the Secretary of State if—

(a) he gives notice to that effect to the funding authority within two months after the submission to him of the published proposals,

(b) objections have been made under paragraph 10 of Schedule 20 within the period allowed under that paragraph (unless all objections so made have been withdrawn in writing within that period), or

(c) the proposals name a sponsor of the school.

(2) Proposals published under section 212 require the approval of the Secretary of State.

(3) Where under subsection (1) or (2) any proposals require the approval of the Secretary of State, he may—

(a) reject them,

(b) approve them without modification, or

(c) after consulting the funding authority (and, in the case of proposals under section 212, the promoters) approve them with such modifications as he thinks desirable.

(4) In relation to Wales, subsection (3) shall have effect before the Schools Funding Council for Wales begin to exercise their functions with the omission of the reference to consulting the funding authority.

(5) In the case of proposals published under section 211, particulars in respect of the proposed premises of the school prepared under paragraph 12 of Schedule 20 must be adopted by the funding authority.

(6) In the case of proposals published under section 212, particulars in respect of the proposed premises of the school submitted under paragraph 12 of Schedule 20 require the approval of the funding authority.

(7) Where proposals published under section 211 do not require the approval of the Secretary of State, the funding authority shall determine whether to adopt the proposals.

(8) The funding authority shall—

(a) make any determination under subsection (7) not later than four months after the publication of the proposals, and

(b) give notice in writing to the Secretary of State of their determination.

215 Implementation of proposals

(1) Where any proposals are approved or adopted under section 214, the persons who are appointed in accordance with regulations to be the initial first or (as the case may be) foundation governors shall on the incorporation date be incorporated as the governing body of the school under the name given in pursuance of paragraph 7(1)(f) of Schedule 20.

(2) Where any proposals published under section 211 are so approved or adopted, the funding authority shall implement the proposals or, in a case where, under this subsection, the Secretary of State modifies the proposals at their request, shall implement the proposals as so modified.

(3) Where any proposals published under section 212 are so approved, the promoters shall implement the proposals or, in a case where, under this subsection, the Secretary of State modifies the proposals at their request, shall implement the proposals as modified.

(4) Proposals required to be implemented under this section shall be implemented in accordance with any particulars adopted or approved under section 214(5) or (6).

216 Exercise of powers before proposed date of implementation, and payment of grant

(1) Where proposals have been approved or adopted under section 214, the powers conferred on the governing body by or under this Part shall, until the date of implementation of the proposals, be exercised only for the purpose of or in connection with the conduct of the school on or after that date.

(2) In the case of proposals under section 212, the funding authority may at any time after the incorporation date make grants to the governing body in respect of the provision of premises for the school.

(3) So far as the amount of any grant under subsection (2) relates to the provision of a site for the school or of school buildings, it shall not exceed 85 per cent. of the sums expended by the governing body in respect of the provision of the site and buildings in question.

(4) Where proposals have been approved or adopted under section 214, then, in respect of the period beginning with the incorporation date and ending immediately before the date of implementation of the proposals—

(a) Chapter VI (funding of grant-maintained schools) shall not apply, but

(b) the funding authority may make grants to the governing body (other than grants in respect of the provision of premises for the school) in respect of expenditure incurred or to be incurred by that body.

(5) The funding authority may impose on a governing body to whom a grant is made under subsection (2) or (4) such requirements as they may from time to time determine (whether before, at or after the time when the grant is made).

(6) Such requirements may, in particular, if any conditions specified in the requirements are satisfied, require the payment to the funding authority of the whole or any part of the following amount.

(7) That amount is—

(a) the amount of the payments made in respect of the grant, or

(b) so much of the value of any premises or equipment in respect of which the grant was paid as is determined in accordance with the requirements to be properly attributable to the payment of such grant,

whichever is the greater.

(8) No such requirement as is referred to in subsection (6) may be imposed where any grant is made under subsection (2) in respect of the provision of premises for the school if any freehold interest in the premises in respect of which the grant is paid is, or is to be, held on trust for the purposes of the school.

(9) In this section “site” does not include playing fields.

Supplementary

217 Chapter IV: interpretation

In relation to proposals for the establishment of a new grant-maintained school or to a school established in pursuance of such proposals—

(a) the date specified in the proposals as the proposed incorporation date is referred to in this Part as the “incorporation date”, and

(b) the date specified in the proposals as the proposed date of implementation is referred to in this Part as the “date of implementation of the proposals”.