The Act Regulatory intervention by Scottish Housing Regulator Section 59 – Appointment of managers: supplementary
21.Section 59 of the 2010 Act makes provision about the appointment of managers under sections 57 and 58. In particular, section 59(4) provides that such a manager has a duty to comply with directions about the performance of the manager’s functions given to the manager by the Regulator and may be removed if the manager fails to comply with those directions.
22.There is, as before, no express link between the failure that led to the manager’s appointment and the functions in relation to which the Regulator may give the manager directions.
23.Section 1(4) replaces section 59(4) with new subsections (4) and (4A). While retaining the power of the Regulator to give directions, the duty of the manager to comply with those directions and the Regulator’s power to remove a manager who fails to do so, these new subsections provide that the directions can relate only to rectifying the failure that led to the manager’s appointment. Subsection (4A)(b) also clarifies that it is the Regulator who can remove a manager who fails to comply with a direction, even where the manager was appointed by the RSL under section 57 or 58 (rather than having been appointed directly by the Regulator).