Commentary on Sections and Schedules Part 1 – Provision for New Legal Frameworks Chapter 3 – Powers to form companies etc. Section 12: Limits on powers conferred by section 11
69.This section requires maintained schools wishing to form or join companies established for the purposes of section 11 to obtain the consent of their LEA. Regulations will set out the basis on which an LEA may refuse consent. Only schools with a delegated budget will be able to belong to such a company.
70.The section provides for regulations to deal with such matters as the constitution of the company and the effect of the delegated budget being withdrawn from a member school. Companies may not borrow money without consent.
71.Regulations will put in place arrangements for the financial monitoring of these companies and powers to address any financial mismanagement of the company.