Modifications of Articles 218 and 219N.I.

5.—(1) Articles 218 (requirement for member-nominated trustees) and 219 (requirement for member-nominated directors of corporate trustees) shall be modified in their application to the cases prescribed in [F1paragraphs (2) to (7)].

(2) In relation to a scheme where the scheme rules contain provisions requiring that there be more than one third member-nominated trustees or directors as the case may be, Articles 218 and 219 shall be modified as if—

(a)in Article 218(1)(a) for “at least one-third of the total number of trustees” there were substituted “the nomination and selection of member-nominated trustees at least in a proportion not less than that proportion set out in the scheme rules”;

(b)Article 218(4) were omitted;

(c)in Article 219(1)(a) for “at least one-third of the total number of directors of the company” there were substituted “the nomination and selection of member-nominated directors at least in a proportion not less than that proportion set out in the scheme rules”, and

(d)Article 219(4) were omitted.

(3) In relation to a scheme where the scheme rules provide that trustees of the scheme may be removed by a vote of the membership, then in relation to any application of that scheme rule, Article 218 shall be modified as if paragraph (6) of that Article were omitted.

(4) In relation to a scheme which has member-nominated trustees or, as the case may be, directors appointed under Article 16(1) (requirement for member-nominated trustees) or 18(1) (corporate trustees: member-nominated directors) of the 1995 Order(1) immediately prior to the date those Articles are repealed, Articles 218 and 219 shall be modified as if—

(a)in Article 218 after paragraph (2) there were inserted the following paragraph—

“(2A) In the case of a scheme which has member-nominated trustees appointed under Article 16(1) of the 1995 Order (requirement for member-nominated trustees) immediately prior to the date that Article was repealed, “member-nominated trustees” includes any member-nominated trustees appointed under that Article for the remainder of their term of office under Article 16(5) of that Order.”, and

(b)in Article 219 after paragraph (2) there were inserted the following paragraph—

“(2A) In the case of a scheme which has member-nominated directors appointed under Article 18(1) of the 1995 Order (corporate trustees: member-nominated directors) immediately prior to the date that Article was repealed, “member-nominated directors” includes any member-nominated directors appointed under that Article for the remainder of their term of office under Article 18(5) of that Order.”.

(5) In relation to a scheme which has arrangements for the appointment of member-nominated trustees or directors approved under Article 17(1) (exceptions) or 19(1) (corporate trustees: exceptions) of the 1995 Order immediately prior to the date those Articles are repealed, Articles 218 and 219 shall be modified as if—

(a)in Article 218 for paragraph (3) there were substituted the following paragraph—

“(3) The “commencement date”, in relation to a scheme, is—

(a)the date the approval under regulation 20 of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 1996 (cessation of approval of appropriate rules and alternative arrangements) would cease to have effect but for the revocation of those Regulations, or

(b)31st October 2007,

whichever is the earlier.”, and

(b)in Article 219 for paragraph (3) there were substituted the following paragraph—

“(3) The “commencement date”, in relation to a company, is—

(a)the date the approval under regulation 20 of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 1996 would cease to have effect but for the revocation of those Regulations, or

(b)31st October 2007,

whichever is the earlier.”.

(6) In relation to a scheme which has no active or pensioner members Articles 218 and 219 shall be modified as if for sub-paragraph (a) of paragraph (2) of both Articles there were substituted the following sub-paragraph—

“(a)are nominated as the result of a process in which at least such deferred members, as the trustees determine, are eligible to participate, and”.

[F2(7)  In relation to a scheme where—

(a)every trustee is a company;

(b)at least one trustee only has directors who are independent (or a sole director who is independent) within the meaning given by Article 23(3)(3) of the 1995 Order, and

(c)at least one trustee has one or more directors who are not independent within that meaning,

Article 219 shall be modified as if after paragraph (1) there were inserted the following paragraph—