Free to transfer after all

Joanna Forbes

A couple of months ago I highlighted the apparent omission from the draft Regulations issued by BIS setting out the ‘prescribed bodies’ to which an FE or Sixth Form college may transfer its assets and liabilities on a dissolution. The draft Regulations did not include provision for a transfer to a body corporate (other than a designated institution), which was surprising given that such a provision existed in the previous legislation.

The Regulations were enacted on 21 April and come into force on 21 May 2012. I was pleased to see that the final form does now include the missing provision, so that a college may transfer its assets and liabilities to ‘a body corporate established for purposes which include the provision of educational facilities or services or any description’. This may be useful to any college wishing to convert to become a limited company as part of a federal or other group structure arrangement.

Joanna Forbes
Senior Associate Solicitor
Education Team
For and on behalf of SGH Martineau LLP
DD: 0800 763 1310
M: 07725 241552
F: 0800 763 1710
International DD: +44 870 763 1310
E: joanna.forbes@sghmartineau.com
W: www.sghmartineau.com

Comments -
  1. Gravatar
    SJ

    Thanks for clearing that up!

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