Commentary on Sections Authorisation Section 7: Effect of authorisation
61.Section 7 sets out the legal effect of an authorisation to be an NHS foundation trust. Under the section, where authorisation is granted to an NHS trust it ceases to be an NHS trust and becomes an NHS foundation trust. Where authorisation is granted to a public benefit corporation it becomes an NHS foundation trust.
62.Subsection (5) provides that the property, rights and liabilities of applicants continue with the NHS foundation trust.
63.Subsection (7) provides that, like NHS trusts, NHS foundation trusts are not Crown bodies: see paragraph 18 of Schedule 2 to the National Health Service and Community Care Act 1990 (“the 1990 Act”).