Commentary on Sections Academy orders Section 59: Transfer of property, rights and liabilities to Academies
286.Section 59 amends section 8 of AA 2010. Section 8 applies when an Academy order has effect and a school is converting into an Academy. In those circumstances, the Secretary of State has a power to make a property transfer scheme for the transfer of property (other than land), rights and liabilities held by local authorities in relation to a school or a school’s governing body to the proprietor of the new Academy. Subsections (2) and (3) provide that a property transfer scheme is now to be called a transfer scheme and that such a scheme includes, in addition to other property, rights and liabilities of local authorities or governing bodies, the rights and liabilities in relation to staff.
287.Subsection (4) changes the description of the recipient of property, rights and liabilities under a transfer scheme from “the proprietor of the Academy” to “a person concerned with the running of the Academy”. This ensures consistency with the terms of the new Schedule 1 to AA 2010 (inserted by Schedule 14) concerning the transfer of land.
288.The new Schedule 1 to AA 2010 also contains a power (at paragraph 13(3)(b)) for the Secretary of State to make a direction for the transfer of land, other property, rights and liabilities to vest in a person concerned with the running of an Academy where the governing body of a school are to be dissolved following an Academy order.