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Land Reform (Scotland) Act 2016

Type Act of the Scottish Parliament

Publication 2016-04-22

Last updated 2026-03-16

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

PART 1 — Land rights and responsibilities statement

Guidance on engaging communities in decisions relating to land

1

(1) The Scottish Ministers must prepare and publish a land rights and responsibilities statement.

(2) A “land rights and responsibilities statement” is a statement of principles for land rights and responsibilities in Scotland.

(3) In preparing the statement, the Scottish Ministers must have regard to the desirability of—

(a) promoting respect for, and observance of, relevant human rights,

(b) promoting respect for such internationally accepted principles and standards for responsible practices in relation to land as the Scottish Ministers consider to be relevant,

(d) furthering the reduction of inequalities of outcome which result from socio-economic disadvantage,

(e) supporting and facilitating community empowerment,

(ea) promoting, facilitating and supporting the Gaelic language,

(f) increasing the diversity of land ownership, and

(g) furthering the achievement of sustainable development in relation to land.

(4) For the purposes of subsection (3)(a)––

(a) “relevant human rights” means such human rights as the Scottish Ministers consider to be relevant to the preparation of the statement, and

(b) in considering what human rights are relevant human rights, Ministers may consult the Scottish Commission for Human Rights and such other persons or bodies as they consider appropriate.

(5) For the purposes of subsection (3)(b), “internationally accepted principles and standards for responsible practices in relation to land” include the principles and standards contained in the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the context of National Food Security issued by the Food and Agriculture Organization of the United Nations and endorsed by the Committee on World Food Security on 11 May 2012.

(6) In this section “human rights” means—

(a) the Convention rights (within the meaning of section 1 of the Human Rights Act 1998), and

(b) other human rights contained in any international convention, treaty or other international instrument ratified by the United Kingdom, including the International Covenant on Economic, Social and Cultural Rights adopted and opened for signature, ratification and accession by General Assembly resolution 2200A (XXI) of 16 December 1966 subject to—

(i) any amendments in force in relation to the United Kingdom for the time being, and

(ii) any reservations, objections or interpretative declarations by the United Kingdom for the time being in force.

Publication and review of land rights and responsibilities statement

2

(1) The Scottish Ministers must publish the first land rights and responsibilities statement and lay it before the Scottish Parliament before the end of the period of 12 months beginning with the day on which this section comes into force.

(2) Before complying with subsection (1), the Scottish Ministers must publish a draft of the statement and consult such persons as they consider appropriate.

(3) The Scottish Ministers must lay before the Scottish Parliament a report setting out—

(a) the consultation process undertaken in order to comply with subsection (2), and

(b) the ways in which views expressed during that process have been taken account of in preparing the statement (or stating that no account has been taken of such views).

(4) The Scottish Ministers must review the first statement before the end of the period of 5 years beginning with the day on which the Scottish Ministers published the statement.

(5) In carrying out the review of the statement, the Scottish Ministers must consult such persons as they consider appropriate.

(6) If, following the review under subsection (4), the Scottish Ministers consider that it is not appropriate to prepare a revised statement, they must lay before the Scottish Parliament a report setting out—

(a) the consultation process undertaken in order to comply with subsection (5), and

(b) the reasons why they consider that it is not appropriate to prepare a revised statement.

(7) If, following the review under subsection (4), the Scottish Ministers consider that it is appropriate to prepare a revised statement, they must—

(a) publish the revised statement and lay it before the Scottish Parliament, and

(b) lay before the Scottish Parliament a report setting out—

(i) the consultation process undertaken in order to comply with subsection (5), and

(ii) the reasons why they consider that it is appropriate to prepare a revised statement.

(8) The Scottish Ministers must review the statement, or revised statement, before the end of each period of 5 years beginning with the day on which they last laid before the Scottish Parliament the report under subsection (6) or, as the case may be, (7)(b).

(9) Subsections (5) to (7) apply to the review of a statement, or revised statement, under subsection (8) as they apply to the review of the first statement under subsection (4).

Duty to promote land rights and responsibilities statement

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The Scottish Ministers must, in exercising their functions and so far as reasonably practicable, promote the principles set out in the land rights and responsibilities statement.

PART 2 — The Scottish Land Commission

CHAPTER 1 — The Commission

Establishment

The Scottish Land Commission

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(1) The Scottish Land Commission (in Gaelic, Coimisean Fearainn na h-Alba) is established by this section.

(2) In this Act, it is referred to as “the Commission”.

(3) The Commission is a body corporate.

(4) The Commission is to consist of the following members—

(a) five Land Commissioners, and

(b) the Tenant Farming Commissioner.

(5) The Scottish Ministers may by regulations amend subsection (4)(a) so as to alter the number of Land Commissioners.

(6) The Commission has the functions conferred by section 6.

(7) The Land Commissioners have the functions conferred by section 22.

(8) The Tenant Farming Commissioner has the functions conferred by section 24.

Status

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(1) The Commission is not a servant or agent of the Crown.

(2) It does not enjoy any status, immunity or privilege of the Crown.

(3) Its property is not property of, or property held on behalf of, the Crown.

(4) Its members and staff—

(a) are not servants or agents of the Crown,

(b) have no status, immunity or privilege of the Crown,

Functions of the Commission

6

The functions of the Commission are—

(a) to provide the Land Commissioners and Tenant Farming Commissioner with the property, staff and services needed to perform their respective functions, and

(b) to make such arrangements as are appropriate and practicable for the co-ordination of the performance of those respective functions.

General powers

7

(1) The Commission may do anything which it considers—

(a) to be necessary or expedient for the purposes of, or in connection with, the exercise of—

(i) its functions,

(ii) the functions of the Land Commissioners,

(iii) the functions of the Tenant Farming Commissioner,

(b) to be conducive to the exercise of those respective functions.

(2) In particular, the Commission may—

(a) enter into contracts,

(b) acquire and dispose of land,

(d) obtain advice or assistance from any person who is, in the Commission's opinion, qualified to give it,

(e) pay any such person such fees, remuneration and allowances as the Commission may determine.

Strategic plan and programme of work

Strategic plan

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(1) The Commission must prepare a strategic plan setting out how the Commission, the Land Commissioners and the Tenant Farming Commissioner propose to exercise their respective functions for the period to which the plan relates.

(2) A strategic plan must, in particular, set out—

(a) the objectives and priorities of—

(i) the Commission,

(ii) the Land Commissioners,

(iii) the Tenant Farming Commissioner,

(b) estimates of the costs of the exercise of their respective functions of—

(i) the Commission,

(ii) the Land Commissioners,

(iii) the Tenant Farming Commissioner.

(3) The Commission must submit the strategic plan to the Scottish Ministers—

(a) in the case of the first plan, before the end of the period of 6 months beginning with the day on which this section comes into force,

(b) in the case of each subsequent plan, before the end of the period of 3 years beginning with the day on which the Commission last submitted its strategic plan.

(4) The Scottish Ministers may—

(a) approve the strategic plan,

(b) approve the strategic plan with such modifications as they consider appropriate in consultation with the Commission,

(c) reject the strategic plan and direct the Commission to submit a revised plan before the end of such period as the Scottish Ministers may determine.

(5) Where the Scottish Ministers approve the strategic plan under subsection (4)(a) or (4)(b), the Commission must as soon as practicable—

(a) publish the plan in such form as it considers appropriate, and

(b) lay a copy of the plan before the Scottish Parliament.

(6) The Commission—

(a) must comply with any direction to submit a revised strategic plan under subsection (4)(c),

(b) may from time to time submit a revised strategic plan.

(7) Subsections (4) and (5) apply to a revised strategic plan as they apply to a strategic plan.

Programme of work

9

(1) The Land Commissioners must prepare a programme of work setting out—

(a) information on any proposed reviews under section 22(1)(a),

(b) information on any other activities,

(2) The Commission must submit the Land Commissioners' programme of work to the Scottish Ministers when it submits the strategic plan under section 8.

(3) The Commission must—

(a) publish the programme of work in such form as it considers appropriate, and

(b) lay a copy of the programme before the Scottish Parliament.

(4) The Commission may from time to time submit a revised programme of work.

(5) Subsection (3) applies to a revised programme of work as it applies to a programme of work.

Membership

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(1) The Scottish Ministers are to appoint the members of the Commission.

(2) The Scottish Ministers may appoint a person as a member only if the Scottish Parliament has approved the appointment.

(3) Each member is to be appointed for such period, not exceeding 5 years, as the Scottish Ministers may determine.

(4) Subject to sections 11, 12 and 13, an appointed member holds and vacates office on such terms and conditions as the Commission may, with the approval of the Scottish Ministers, determine.

(5) The Scottish Ministers may reappoint as a member a person who is or has been a member.

(6) Subsections (2) and (3) apply to a reappointment under subsection (5) as they apply to an appointment under subsection (1).

(7) The Scottish Ministers must select one of the Land Commissioners to chair the Commission.

Eligibility for appointment

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(1) In appointing members to the Commission, the Scottish Ministers must—

(a) have regard among other things to the desirability of the Commission (taken as a whole) having expertise or experience in—

(i) land reform,

(ii) law,

(iii) finance,

(iv) economic issues,

(v) planning and development,

(vi) land management,

(vii) community empowerment,

(viii) environmental issues,

(ix) human rights,

(x) equal opportunities,

(xi) the reduction of inequalities of outcome which result from socio-economic disadvantage, and

(b) encourage equal opportunities and in particular the observance of the equal opportunity requirements.

(2) In appointing the Land Commissioners, the Scottish Ministers must take every reasonable step to ensure that at least one of the Commissioners is a speaker of the Gaelic language.

(3) In appointing the Tenant Farming Commissioner, the Scottish Ministers must ensure that the person appointed has expertise or experience in agriculture.

(4) When the Scottish Ministers refer an appointment to the Scottish Parliament for approval under section 10(2), they must lay before the Scottish Parliament a statement as to how they have complied with the duties in subsections (1) to (3).

(5) In subsection (1) “equal opportunities” and “equal opportunity requirements” have the same meanings as in Section L2 of Part 2 of schedule 5 of the Scotland Act 1998.

Disqualification from membership

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(1) A person may not be appointed as a member of the Commission if that person is or has been at any time during the previous 12 months—

(a) a member of the House of Commons,

(b) a member of the Scottish Parliament,

(d) an officer-holder of the Scottish Administration,

(e) a councillor of any local authority.

(2) A person may not be appointed as the Tenant Farming Commissioner if that person is the owner or tenant of land subject to a relevant tenancy.

(3) In this Part “relevant tenancy” means—

(a) a tenancy to which the 1991 Act applies, or

(b) a tenancy under sections 4, 5, 5A or 5C of the 2003 Act (new types of tenancy).

(4) A person's appointment as a member ceases if, during the person's period of appointment, any of subsection (1)(a) to (e) applies to that person.

(5) A person's appointment as the Tenant Farming Commissioner ceases if, during the person's period of appointment, subsection (2) applies to that person.

Resignation and removal

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(1) A member of the Commission may resign at any time by giving notice in writing to the Scottish Ministers.

(2) The Scottish Ministers may by giving notice in writing revoke the appointment of a person as a member if satisfied that the person—

(a) is insolvent,

(b) has been convicted of a criminal offence in relation to which the member has been sentenced to imprisonment for a period of 3 months or more,

(d) has been absent from meetings of the Commission for a period exceeding 6 months without the permission of the Commission, or

(e) is otherwise unable or unfit to exercise any of the functions of a member or is unsuitable to continue as a member.

(3) For the purposes of subsection (2)(a) a person becomes insolvent when—

(a) the person's estate is sequestrated,

(b) the person grants a trust deed for creditors or makes a composition or arrangement with creditors,

(d) the person's application for a debt payment programme is approved under section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002, or

(e) the person becomes subject to any other kind of order or arrangement analogous to those described in paragraphs (a) to (d) anywhere in the world.

Remuneration and staff

Remuneration, allowances and pensions

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(1) The Commission may pay its members and employees—

(a) such remuneration as the Commission may, with the approval of the Scottish Ministers, determine, and

(b) such allowances in respect of expenses properly incurred in the exercise of the Commission's functions as may be so determined.

(2) The Commission may, with the approval of the Scottish Ministers—

(a) pay (or make arrangements for the payment of),

(b) make payments towards the provision of,

such pensions, allowances or gratuities to any member or employee or former member or employee of the Commission as the Commission may determine.

(3) Those pensions, allowances or gratuities may include pensions, allowances or gratuities by way of compensation for loss of office.

Staff

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(1) The Commission is to employ a person as chief executive.

(2) The first chief executive is to be appointed by the Scottish Ministers on such terms as they may determine.

(3) Each subsequent chief executive is to be appointed—

(a) by the Commission with the approval of the Scottish Ministers,

(b) on such terms and conditions as the Commission may, with the approval of the Scottish Ministers, determine.

(4) The Commission may employ any other staff necessary for the exercise of its functions.

(5) The Commission's staff are to be employed on such terms and conditions as the Commission may, with the approval of the Scottish Ministers, determine.

Operational matters

Validity of things done

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The validity of anything done by the Commission is not affected by—

(a) a vacancy in membership,

(b) a defect in the appointment of a member,

Committees

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(1) The Commission may establish committees for any purpose relating to—

(a) its functions,

(b) the functions of the Land Commissioners,

(2) The Commission may authorise any committee to exercise such of its functions, and to such extent, as it may determine.

(3) Nothing in subsection (2) affects the responsibility of the Commission for the exercise of its functions.

(4) The Commission may appoint a person who is not a member of the Commission to be a member of a committee.

(5) The Commission may pay to a person who is not a member of the Commission and who is appointed to a committee—

(a) such remuneration as the Commission may, with the approval of the Scottish Ministers, determine, and

(b) such allowances in respect of expenses properly incurred in the exercise of the functions of the Commission, of the Land Commissioners or of the Tenant Farming Commissioner as may be so determined.

(6) A committee must comply with any directions given to it by the Commission.

Regulation of procedure

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(1) The Commission must establish and maintain a register of interests.

(2) Otherwise, the Commission may regulate its own procedure and those of its committees, including the quorum at any meeting.

Accounts and annual report

Accounts

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(1) The Commission must—

(a) keep proper accounts and accounting records,

(b) prepare in respect of each financial year a statement of accounts.

(2) The Commission must send a copy of the statement of accounts to the Scottish Ministers by such date as the Scottish Ministers may direct.

(3) The Commission must comply with any other directions which the Scottish Ministers may give them in relation to the matters mentioned in subsection (1).

(3A) The Scottish Ministers must, as soon as reasonably practicable after receiving a copy statement of accounts from the Commission, send it to the Auditor General for Scotland for auditing.

(4) The Commission must make its audited statement of accounts and accounting records available so that they may be inspected by any person.

Annual report

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(1) As soon as practicable after the end of each financial year, the Commission must prepare a report setting out—

(a) an assessment of its performance in carrying out its functions, including—

(i) the functions of the Commission,

(ii) the functions of the Land Commissioners,

(iii) the functions of the Tenant Farming Commissioner,

(b) an assessment of the performance by the Commission and its members in achieving the main objectives set out in any strategic plan having effect during that year,

(c) an assessment of the performance by the Land Commissioners in relation to any programme of work having effect during that year,

(d) such other information as the Commission considers appropriate.

(2) The Commission must—

(a) publish each annual report in such form as the Commission considers appropriate,

(b) provide a copy of each annual report to the Scottish Ministers, and

(3) The Commission—

(a) may publish such other reports and information on matters relevant to its functions as it considers appropriate,

(b) where it does so, must lay a copy of each report before the Scottish Parliament.

Application of public bodies legislation

Application of legislation relating to public bodies

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(1) In the Ethical Standards in Public Life etc. (Scotland) Act 2000, in schedule 3 (devolved public bodies), at the appropriate place in alphabetical order insert— “ The Scottish Land Commission ”.

(2) In the Freedom of Information (Scotland) Act 2002, in Part 7 of schedule 1 (Scottish public authorities: others), after paragraph 90 insert—

(90A) The Scottish Land Commission.

(3) In the Public Services Reform (Scotland) Act 2010—

(a) in schedule 5 (improvement of public functions: listed public bodies), at the appropriate place in alphabetical order insert— “ Scottish Land Commission ”,

(b) in schedule 8 (information on exercise of public functions: listed public bodies), at the appropriate place in alphabetical order insert— “ Scottish Land Commission ”.

CHAPTER 2 — The Land Commissioners

Functions of the Land Commissioners

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(1) The functions of the Land Commissioners are, on any matter relating to land in Scotland—

(a) to review the impact and effectiveness of any law or policy,

(b) to recommend changes to any law or policy,

(d) to carry out research,

(e) to prepare reports,

(f) to provide information and guidance.

(2) The Land Commissioners must consider and advise on any such matter as the Scottish Ministers may refer to them.

(3) In exercising their functions the Land Commissioners must—

(a) have regard to—

(i) the land rights and responsibilities statement prepared under section 1 or revised under section 2,

(ii) the strategic plan prepared under section 8,

(iii) the programme of work prepared under section 9,

(b) collaborate with the Tenant Farming Commissioner.

(4) In so far as the exercise of their functions relates to agriculture and agricultural holdings, the Land Commissioners must have regard to the exercise of the Tenant Farming Commissioner's functions conferred by section 24.

(5) In this section a “matter relating to land in Scotland” includes—

(a) ownership and other rights in land,

(b) management of land,

(d) the land use strategy prepared under section 57 of the Climate Change (Scotland) Act 2009 ,

(e) the effects of natural capital markets in relation to other matters relating to land in Scotland ,

(f) the relationship between scale and concentrations of land holdings and local economic development,

(g) the desirability of achieving a more diverse pattern of landownership comprising more landowners and different types of landowners,

(h) measures to prevent depopulation and support the repopulation of land and the sustainability of communities.

(6) In subsection (5) “natural capital market” means the trading of units or credits which are generated through a registration scheme for projects to restore or improve the natural environment.

Land Commissioners: delegation of functions

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(1) The Land Commissioners may authorise the following to exercise such of their functions, and to such extent, as they may determine—

(a) any committee,

(b) any employee of the Commission,

(2) Nothing in subsection (1) affects the responsibility of the Land Commissioners for the exercise of their functions.

CHAPTER 3 — The Tenant Farming Commissioner

Functions of the Tenant Farming Commissioner

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(1) The functions of the Tenant Farming Commissioner are—

(a) to prepare codes of practice on agricultural holdings in accordance with section 27,

(b) to promote the codes of practice in accordance with section 28,

(d) to prepare a report on the operation of agents of landlords and tenants in accordance with section 36,

(e) to prepare recommendations for a modern list of improvements to agricultural holdings in accordance with section 37,

(f) to refer for the opinion of the Land Court any question of law relating to agricultural holdings in accordance with section 38,

(g) to collaborate with the Land Commissioners in the exercise of their functions to the extent that those functions relate to agriculture and agricultural holdings,

(h) to exercise any other functions conferred on the Commissioner by any enactment.

(2) The Tenant Farming Commissioner must exercise the Commissioner's functions with a view to encouraging good relations between landlords and tenants of agricultural holdings.

(3) The Scottish Ministers must—

(a) review the Tenant Farming Commissioner's functions before the end of the period of 3 years beginning with the day on which this section comes into force,

(b) publish the findings of the review as soon as practicable.

(4) In carrying out a review under subsection (3), the Scottish Ministers must—

(a) invite the Tenant Farming Commissioner to give views on the operation of the Commissioner's functions and, in particular, on whether the Commissioner's powers are sufficient in relation to the Commissioner's duties,

(b) invite such other persons appearing to Ministers to have an interest in the Commissioner's functions to give views on the operation of those functions, and

(5) Following review under subsection (3), the Scottish Ministers may by regulations modify subsection (1) to—

(a) amend the functions of the Tenant Farming Commissioner,

(b) remove functions from the Tenant Farming Commissioner,

Tenant Farming Commissioner: delegation of functions

25

(1) The Tenant Farming Commissioner may authorise the following to exercise such of the Commissioner's functions, and to such extent, as the Commissioner may determine—

(a) any Land Commissioner,

(b) any committee,

(d) any other person.

(2) But the Tenant Farming Commissioner may not authorise the function under section 24(1)(f) to be exercised by any other person.

(3) Nothing in subsection (1) affects the responsibility of the Tenant Farming Commissioner for the exercise of the Commissioner's functions.

Acting Tenant Farming Commissioner

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(1) The Scottish Ministers may appoint a person to carry out the functions of the Tenant Farming Commissioner during a period in which the office is vacant (an “acting Tenant Farming Commissioner”).

(2) A person who is disqualified for appointment as Tenant Farming Commissioner is also disqualified for appointment as acting Tenant Farming Commissioner.

(3) A person appointed as acting Tenant Farming Commissioner—

(a) may, by giving notice in writing to the Scottish Ministers, resign at any time,

(b) may be dismissed by the Scottish Ministers at any time,

(4) While holding appointment as acting Tenant Farming Commissioner, a person is to be treated as the Commissioner for all purposes other than those of sections 13 and 14.

Tenant Farming Commissioner: codes of practice

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(1) The Tenant Farming Commissioner must prepare codes of practice for the purpose of providing practical guidance to landlords and tenants of agricultural holdings and their agents.

(2) The codes of practice may include, among other things, provision about—

(a) negotiating and conducting rent reviews,

(b) agreeing and recording improvements by tenants,

(d) the conduct of agents of landlords and tenants,

(e) the process of succession and assignation,

(f) determining compensation at waygo,

(g) negotiating the terms of a modern limited duration tenancy and a repairing tenancy,

(h) the management of sporting leases, and

(i) game management.

(3) The Tenant Farming Commissioner must from time to time—

(a) review the codes of practice,

(b) revise the codes if the Commissioner considers it appropriate.

(4) Before the Tenant Farming Commissioner publishes a code of practice under this section, the Commissioner must consult any persons appearing to the Commissioner to have an interest in the draft code.

(5) After complying with subsection (4), the Tenant Farming Commissioner must—

(a) publish the code in such form as the Commissioner considers appropriate, and

(b) lay a copy of the code before the Scottish Parliament.

(6) Subsections (4) and (5) apply to a revised code of practice as they apply to a code of practice.

(7) A code of practice published under this section is admissible in evidence in any proceedings before the Land Court.

(8) If any provision of a code of practice published under this section appears to the Land Court conducting any proceedings to be relevant to any question arising in the proceedings the Land Court must take that provision of the code into account in determining that question.

(9) Subsections (7) and (8) apply to arbitration proceedings under section 61 of the 1991 Act or section 78 of the 2003 Act as they apply to Land Court proceedings.

Tenant Farming Commissioner: promotion of codes of practice

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The Tenant Farming Commissioner is to promote the observance of the codes of practice issued under section 27, including by—

(a) educating and advising about the codes,

(b) supporting best practice in accordance with the codes among landlords and tenants of agricultural holdings and their agents,

(d) working in collaboration with other persons (whether in partnership or in other ways),

(e) contributing to the development and delivery of policies and strategies in relation to agricultural holdings.

Tenant Farming Commissioner: inquiry function

Application to inquire into breach of code of practice

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(1) A person may apply to the Tenant Farming Commissioner to inquire into an alleged breach of a code of practice (an “alleged breach”) if the person—

(a) has an interest in a relevant tenancy, or

(b) would have an interest in a relevant tenancy but for the alleged breach.

(2) An application under subsection (1) must contain—

(a) the applicant's details,

(b) details of each other person having an interest in the relevant tenancy, so far as the applicant is aware of them,

(d) the provision of the code of practice that the alleged breach relates to.

(3) Subject to subsection (5), an application must be accompanied by the appropriate fee set by the Tenant Farming Commissioner.

(4) When setting the appropriate fee, the Tenant Farming Commissioner must have regard to the likely impact of the fee on the number of applications under subsection (1).

(5) The Tenant Farming Commissioner may waive payment of the appropriate fee if the Commissioner considers that payment is likely to result in undue hardship to the applicant.

(6) An application under subsection (1) is without prejudice to any time limit for proceedings in the Land Court under any enactment.

Procedure for inquiry

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(1) The Tenant Farming Commissioner may inquire into an alleged breach only if satisfied that—

(a) the applicant has an interest in a relevant tenancy, or would do so but for the alleged breach,

(b) the application contains sufficient information to proceed to an inquiry, and

(2) Where the Tenant Farming Commissioner is not satisfied that the application contains sufficient information to proceed to an inquiry, the Commissioner may require the applicant to provide such additional information as the Commissioner considers appropriate, by the end of such period as the Commissioner may specify.

(3) The Tenant Farming Commissioner may dismiss the application by giving notice in writing to the applicant where—

(a) the application does not meet the conditions in subsection (1),

(b) a request by the Commissioner under subsection (2) for additional information has been made and the period specified for providing such information has expired, or

(c) the Commissioner considers that a request under subsection (2) for additional information would not provide sufficient information to proceed to an inquiry.

(4) Where the Tenant Farming Commissioner is satisfied that the application meets the conditions in subsection (1) the Commissioner must—

(a) give notice in writing to the applicant and each other person with an interest in the relevant tenancy,

(b) send a copy of the application to each of those persons, and

Enforcement powers

31

(1) The Tenant Farming Commissioner may at any time during an inquiry into a breach of a code of practice require any person to provide such information as the Commissioner considers appropriate for the purposes of the inquiry.

(2) The Tenant Farming Commissioner may by serving notice in writing impose a monetary penalty (a “non-compliance penalty”) on a person for failing to comply with a requirement under—

(a) section 30(4)(c),

(b) subsection (1).

(3) The amount of a non-compliance penalty is to be determined by the Tenant Farming Commissioner, but must not exceed £1000.

(4) A non-compliance penalty must be paid to the Commission.

(5) The Commission may recover any non-compliance penalty as a civil debt.

Notice of non-compliance penalty

32

(1) A notice under section 31(2) must include information as to—

(a) the grounds for imposing the non-compliance penalty,

(b) the amount of the penalty,

(d) the period within which payment must be made, which must be not less than 28 days beginning with the day on which the notice imposing the penalty is received,

(e) rights of appeal, and

(f) the consequences of failure to make payment within the period specified.

(2) A person served with a notice imposing a non-compliance penalty may appeal to the Land Court against the notice on the ground that the decision to serve the notice—

(a) was based on an error of fact,

(b) was wrong in law, or

(3) An appeal under subsection (2) must be made within the period of 28 days beginning with the day on which the notice under section 31(2) is received.

(4) Where an appeal under subsection (2) is made, the non-compliance penalty is suspended from the day on which the appeal is made until the day on which the appeal is determined or withdrawn.

(5) On an appeal under subsection (2) the Land Court may overturn, confirm or vary the non-compliance penalty.

Report on inquiry

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(1) As soon as practicable after an inquiry into an alleged breach is complete the Tenant Farming Commissioner must publish a report setting out—

(a) where there is sufficient information for the Commissioner to reach a decision on breach of the code of practice —

(i) the Commissioner's decision as to whether or not the code has been breached,

(ii) the reasons for the Commissioner's decision,

(iii) the relevant facts on which the Commissioner's decision is based,

(iv) such recommendations as the Commissioner considers appropriate,

(b) where there is not sufficient information for the Commissioner to reach a decision on breach of the code of practice, that finding.

(2) A report published under this section is admissible as evidence in any proceedings before the Land Court.

(3) If a report published under this section appears to the Land Court conducting any proceedings to be relevant to any question arising in the proceedings the Land Court must take that report into account in determining that question.

(4) Subsections (2) and (3) apply to arbitration proceedings under section 61 of the 1991 Act or section 78 of the 2003 Act as they apply to Land Court proceedings.

Tenant Farming Commissioner: confidentiality of information

34

(1) A relevant person must not disclose any information which has been obtained by or on behalf of the Tenant Farming Commissioner for the purposes of an inquiry into a breach of a code of practice unless authorised to do so by subsection (2).

(2) Disclosure is authorised for the purposes of subsection (1) only so far as—

(a) it is necessary for the purpose of enabling or assisting the exercise by the Tenant Farming Commissioner of the Commissioner's functions under this Act,

(b) it is made with the consent of each person to whom the information relates,

(d) it is made for the purposes of a criminal investigation or criminal proceedings or for the purposes of the prevention or detection of crime,

(e) it is made in pursuance of an order of a court or tribunal,

(f) it is made in accordance with any other enactment requiring or permitting the disclosure.

(3) A person who knowingly contravenes subsection (1) commits an offence.

(4) A person guilty of an offence under subsection (3) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

(5) It is a defence for a person charged with an offence under subsection (3) to prove that the person reasonably believed—

(a) that the disclosure was authorised under subsection (2), or

(b) that the information had already lawfully been made available to the public.

(6) In subsection (1) a “relevant person” means any individual who is or was—

(a) the Tenant Farming Commissioner (or acting Tenant Farming Commissioner),

(b) a Land Commissioner,

(d) a person exercising functions on behalf of the Commission or its members.

Protection from actions for defamation

35

(1) For the purposes of the law of defamation, any statement made by the Tenant Farming Commissioner in pursuance of the Commissioner's inquiry function under section 24(1)(c) has qualified privilege.

(2) In subsection (1) “statement” has the meaning given by section 17 of the Defamation Act 1996.

Tenant Farming Commissioner: review of operation of agents

Report on operation of agents of landlords and tenants

36

(1) The Tenant Farming Commissioner must—

(a) prepare a report on the operation of agents of landlords and tenants in relation to agricultural holdings,

(b) submit the report to the Scottish Ministers before the end of the period of 12 months beginning with the day on which this section comes into force.

(2) The report submitted to the Scottish Ministers under this section—

(a) must include such recommendations as the Commissioner considers necessary to improve the operation of agents of landlords and tenants in relation to agricultural holdings,

(b) may include such other recommendations as the Commissioner considers appropriate.

(3) In preparing the report to the Scottish Ministers under this section, the Commissioner must consult any persons appearing to the Commissioner to have an interest in the operation of agents of landlords and tenants.

Tenant Farming Commissioner: modern list of improvements

Recommendations by Tenant Farming Commissioner for modern list of improvements

37

(1) The Tenant Farming Commissioner must—

(a) prepare a report setting out recommendations for a modern list of improvements to agricultural holdings,

(b) submit the report to the Scottish Ministers.

(2) Before submitting the report to the Scottish Ministers under this section, the Commissioner must consult any persons appearing to the Commissioner to have an interest in the draft recommendations.

Tenant Farming Commissioner: power to refer questions of law to Land Court

Referral of questions of law by Tenant Farming Commissioner to Land Court

38

The Tenant Farming Commissioner may refer to the Land Court for determination any question of law which may competently be determined by the Land Court by virtue of any enactment.

PART 3 — Information about control of land etc.

Information about persons with controlling interests in relation to land

Information about persons with controlling interests in owners and tenants of land

39

(1) The Scottish Ministers must by regulations make provision—

(a) requiring information to be provided about persons who have controlling interests in owners and tenants of land, and

(b) about the publication of that information in a public register kept by the Keeper of the Registers of Scotland.

(2) Regulations under subsection (1) may, in particular, include provision about—

(a) which owners and tenants of land the regulations apply to,

(b) what constitutes a controlling interest in an owner or tenant,

(d) what information must be provided under the regulations (and the manner in which it is to be provided),

(e) the circumstances in which information must be provided under the regulations,

(f) publication of information required under the regulations (including the form of the register and the entry of the information in it),

(g) the circumstances in which the information entered in the register may be corrected or updated,

(h) the circumstances in which a person who has a controlling interest in an owner or tenant can request that information about that person not be published (including, in particular, where the publication of that information might result in the person being at a serious risk of violence or abuse, threat of violence or abuse or intimidation),

(i) the effect of providing (or failing to provide) information required under the regulations,

(j) sanctions for failure to comply with requirements imposed under the regulations,

(k) delegation of functions under the regulations,

(l) fees payable in relation to the provision, publication or accessing of information under the regulations,

(m) appeals against decisions made under the regulations.

(3) Regulations under subsection (1) may include provision for offences and civil penalties (including fixed penalties) for failure to comply with requirements imposed under the regulations.

(4) Where regulations under subsection (1) include provision creating offences—

(a) they must provide for those offences to be triable summarily only, and

(b) they must provide for the maximum penalty for those offences to be a fine, which must not exceed level 5 on the standard scale.

(5) Where regulations under subsection (1) include provision for the imposition of civil penalties, they must include provision about appeals against decisions to impose those penalties.

(6) Regulations under subsection (1) may modify any enactment (including this Act).

(7) The Scottish Ministers must, before laying a draft of any regulations under subsection (1) before the Scottish Parliament, consult—

(a) the Keeper, and

(b) such other persons as they consider appropriate.

(8) Subsection (7) does not apply if section 40 applies.

Procedure for first regulations under section 39

40

The Scottish Ministers may not lay a draft of the first regulations under section 39(1) before the Scottish Parliament unless—

(a) they have consulted in accordance with section 41, and

(b) following that consultation, they have laid before the Scottish Parliament—

(i) proposed draft regulations, and

(ii) an explanatory document prepared in accordance with section 42.

Procedure for first regulations under section 39: consultation

41

(1) Before laying a draft of the first regulations under section 39(1) before the Scottish Parliament, the Scottish Ministers must consult—

(a) the Keeper, and

(b) such other persons as they consider appropriate.

(2) For the purposes of any consultation required by subsection (1), the Scottish Ministers must—

(a) lay before the Scottish Parliament—

(i) a copy of the proposed draft regulations, and

(ii) a copy of the proposed explanatory document referred to in section 40(b)(ii) (except the details required by section 42(1)(b)),

(b) send a copy of the proposed draft regulations and proposed explanatory document to any person to be consulted under subsection (1), and

(c) have regard to any representations about the proposed draft regulations that are made to them within the period of 60 days beginning with the date on which the copy of the proposed draft regulations is laid before the Parliament under paragraph (a).

(3) In calculating any period of 60 days for the purposes of subsection (2)(c), no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.

Procedure for first regulations under section 39: explanatory document

42

(1) The explanatory document referred to in section 40(b)(ii) must—

(a) give reasons for the provisions contained in the proposed draft regulations,

(b) give details of—

(i) any consultation undertaken under section 41,

(ii) any representations received as a result of the consultation, and

(iii) the changes (if any) made to the proposed draft regulations as a result of those representations.

(2) Where a person making representations in response to consultation under section 41 has not consented to the disclosure of the representations, the Scottish Ministers must not disclose them under subsection (1)(b)(ii).

(3) If information in representations made by a person in response to consultation under section 41 relates to another person, the Scottish Ministers must not disclose that information under subsection (1)(b)(ii) if or to the extent that—

(a) it appears to the Scottish Ministers that the disclosure of that information could adversely affect the interests of that other person, and

(b) the Scottish Ministers have been unable to obtain the consent of that other person to the disclosure.

(4) Subsections (2) and (3) do not affect any disclosure that is requested by, and made to, a committee of the Parliament charged with reporting on the proposed draft regulations.

Information relating to proprietors of land etc.

Power of Keeper to request or require information relating to proprietors of land etc.

43

(1) The Land Registration etc. (Scotland) Act 2012 is amended as follows.

(2) After section 48 insert—

(48A) (1) The Scottish Ministers may, by regulations, make provision enabling the Keeper to request or, as the case may be, require information relating to the category of person or body into which a person mentioned in subsection (2) falls. (2) The persons referred to in subsection (1) (“relevant persons”) are— (a) owners of plots of land, (b) proprietors of registered plots of land and registered leases, and (c) tenants of leases which are registered or registrable. (3) Regulations under subsection (1) may, in particular, make provision— (a) about the persons who are owners, proprietors and tenants for the purposes of subsection (2), (b) about the information, relating to the category of person or body into which a relevant person falls, provision of which may be requested or required, (c) about the form in which the information is to be provided, which may consist of (or include) declarations by, or on behalf of, relevant persons about the category of person or body into which a relevant person falls, (d) about the circumstances in which information may be requested, (e) about the circumstances in which information requires, and does not require, to be provided, (f) about the effect (if any) of providing (or not providing) information, (g) about the entry of the information in the register, (h) about whether the Keeper's warranty under Part 7 is to apply in relation to information obtained under the regulations, (i) about the circumstances in which information obtained under the regulations may be corrected or updated, (j) about the circumstances in which information obtained under the regulations may be provided to other persons, (k) about the circumstances in which information obtained under the regulations may be published, (l) for fees relating to the provision, correction or updating of information under the regulations. (4) Regulations under subsection (1) which make provision enabling the Keeper to require information may include provision relating to offences for failure to comply with requirements imposed by the regulations. (5) Where regulations under subsection (1) include provision creating offences— (a) they must provide for those offences to be triable summarily only, and (b) they must provide for the maximum penalty for those offences to be a fine, which must not exceed level 3 on the standard scale. (6) The Scottish Ministers must consult the Keeper before laying a draft of regulations under subsection (1) before the Scottish Parliament. (7) Regulations under subsection (1) may include such incidental, supplementary or consequential provision as the Scottish Ministers consider appropriate for the purposes of, or in connection with, the regulations. (8) Regulations under subsection (1) may modify any enactment (including this Act). (48B) (1) The Scottish Ministers may, by regulations, make provision enabling the Keeper to enter, in the register, information relating to the category of person or body into which a person mentioned in subsection (2) falls. (2) The persons referred to in subsection (1) (“relevant persons”) are— (a) owners of plots of land, (b) proprietors of registered plots of land and registered leases, and (c) tenants of leases which are registered or registrable. (3) Regulations under subsection (1) may, in particular, make provision— (a) about the persons who are owners, proprietors and tenants for the purposes of subsection (2), (b) about notification by the Keeper of the intention to enter the information, (c) about the circumstances in which the Keeper may enter the information, (d) for the information that may be entered and the form in which it is to be entered, (e) about the effect (if any) of entering the information, (f) about whether the Keeper's warranty under Part 7 is to apply in relation to information entered under the regulations, (g) about the circumstances in which information entered under the regulations may be corrected or updated, (h) about the circumstances in which information entered under the regulations may be provided to other persons, (i) about the circumstances in which information entered under the regulations may be published, (j) for fees relating to the correction or updating of information under the regulations. (4) The Scottish Ministers must consult the Keeper before laying a draft of regulations under subsection (1) before the Scottish Parliament. (5) Regulations under subsection (1) may include such incidental, supplementary or consequential provision as the Scottish Ministers consider appropriate for the purposes of, or in connection with, the regulations. (6) Regulations under subsection (1) may modify any enactment (including this Act).

(3) In section 116 (subordinate legislation), in subsection (3), after paragraph (b) insert—

(ba) section 48A(1), (bb) section 48B(1),

(4) In section 121 (Crown application)—

(a) in subsection (1), after first “Crown” insert “ of a requirement imposed by regulations under section 48A or ”,

(b) in subsection (3)—

(i) for “section 112 applies” substitute “ regulations under section 48A and section 112 apply ”,

(ii) for “it applies” substitute “ they apply ”.

PART 4 — Engaging communities in decisions relating to land

Guidance on engaging communities in decisions relating to land

44

(1) The Scottish Ministers must issue guidance about engaging communities in decisions relating to land which may affect communities.

(2) In preparing guidance under subsection (1), the Scottish Ministers must have regard to the desirability of—

(a) promoting respect for, and observance of, relevant human rights,

(b) promoting respect for such internationally accepted principles and standards for responsible practices in relation to land as the Scottish Ministers consider to be relevant,

(d) furthering the reduction of inequalities of outcome which result from socio-economic disadvantage, and

(e) furthering the achievement of sustainable development in relation to land.

(3) For the purposes of subsection (2)(a)––

(a) “relevant human rights” means such human rights as the Scottish Ministers consider to be relevant to the preparation of the guidance, and

(b) in considering what human rights are relevant human rights, Ministers may consult the Scottish Commission for Human Rights and such other persons or bodies as they consider appropriate.

(4) For the purposes of subsection (2)(b), “internationally accepted principles and standards for responsible practices in relation to land” include the principles and standards contained in the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the context of National Food Security issued by the Food and Agriculture Organization of the United Nations and endorsed by the Committee on World Food Security on 11 May 2012.

(5) Guidance under subsection (1) must, in particular, include information about—

(a) the types of land and types of decision in relation to which community engagement should be carried out,

(b) the circumstances in which persons with control over land (for example, owners and occupiers) should carry out community engagement,

(c) the ways in which community engagement should be carried out (for example, by consulting or involving the community).

(6) Before issuing guidance under subsection (1), the Scottish Ministers must consult such persons as they consider appropriate.

(7) The Scottish Ministers must lay the first guidance issued under subsection (1) before the Scottish Parliament.

(8) The Scottish Ministers must prepare and lay before the Scottish Parliament reports—

(a) assessing the effectiveness of guidance under subsection (1), and

(b) setting out the Scottish Ministers' views on any further steps which should be taken to improve the effectiveness of the guidance.

(9) The first report under subsection (8) is to be laid before the Scottish Parliament no later than 3 years after the date on which guidance under subsection (1) is first issued.

(10) Subsequent reports under subsection (8) are to be laid before the Scottish Parliament no later than 5 years after the date on which the last such report was so laid.

(11) In this section “human rights” means—

(a) the Convention rights (within the meaning of section 1 of the Human Rights Act 1998), and

(b) other human rights contained in any international convention, treaty or other international instrument ratified by the United Kingdom, including the International Covenant on Economic, Social and Cultural Rights adopted and opened for signature, ratification and accession by General Assembly resolution 2200A (XXI) of 16 December 1966 subject to—

(i) any amendments in force in relation to the United Kingdom for the time being, and

(ii) any reservations, objections or interpretative declarations by the United Kingdom for the time being in force.

PART 5 — Right to buy land to further sustainable development

Key terms

Meaning of “land”

45

(1) In this Part “land”—

(a) includes—

(i) bridges and other structures built on or over land,

(ii) inland waters,

(iii) canals,

(iv) the foreshore, being the land between the high and low water marks of ordinary spring tides, and

(v) salmon fishings in inland waters or mineral rights which are owned separately from the land in respect of which they are exigible,

(b) does not include land consisting of any other separate tenement which is owned separately from the land in respect of which it is exigible.

(2) In paragraph (a)(v) of subsection (1) “mineral rights” does not include rights to oil, coal, gas, gold or silver.

(3) In this Part “inland waters” has the meaning given by section 69(1) of the Salmon and Freshwater Fisheries (Consolidation) (Scotland) Act 2003.

Eligible land

46

(1) The land which may be bought under this Part (“eligible land”) is any land other than excluded land.

(2) In subsection (1) “excluded land” means—

(a) land on which there is a building or other structure which is an individual's home, unless the building or structure is occupied by an individual under a tenancy,

(b) such land pertaining to land of the type mentioned in paragraph (a) as the Scottish Ministers may by regulations specify,

(d) land which is owned or occupied by the Crown by virtue of its having vested as bona vacantia in the Crown, or its having fallen to the Crown as ultimus haeres,

(e) land of such other descriptions or classes as the Scottish Ministers may by regulations specify.

(3) The Scottish Ministers may by regulations make provision about—

(a) the buildings and structures which are, or are to be treated as, a home for the purposes of subsection (2)(a),

(b) the types of occupation and possession of land that are, or are to be treated as, a tenancy for the purposes of subsection (2)(a).

Eligible land: salmon fishings and mineral rights

47

(1) A Part 5 community body (as defined in section 49) may apply, under section 54, to buy eligible land which consists of salmon fishings or mineral rights only—

(a) where—

(i) it is simultaneously applying, or

(ii) it has made an application in respect of which the Scottish Ministers have not made a decision,

to buy the land to which such fishings or rights relate, or

(b) during the relevant period.

(2) Such an application may be made during the relevant period only where the Part 5 community body or, as the case may be, the third party purchaser (as defined in section 54(1)(b))—

(a) has provided confirmation under section 62(1) or, as the case may be, (2) of its intention to proceed to buy the land to which the fishings or rights relate, or

(b) has bought and retained that related land in accordance with the provisions of this Part.

(3) In this section “relevant period” means the period beginning with the date on which the Scottish Ministers consented to the application under section 54 to buy the land to which the fishings or rights relate and ending—

(a) where the Part 5 community body or, as the case may be, the third party purchaser does not proceed to exercise its right to buy that related land, on the date—

(i) on which it withdraws, under section 62(3)(b) or, as the case may be, (4)(b), its confirmation so to proceed, or

(ii) of its failure otherwise to complete the purchase, or

(b) where the Part 5 community body or, as the case may be, the third party purchaser has bought and retained that related land—

(i) in relation to salmon fishings, 1 year, or

(ii) in relation to mineral rights, 5 years,

after the date on which the Part 5 community body or the third party purchaser bought that land.

Eligible land: tenant’s interests

48

(1) This section applies where a tenancy which is not—

(a) a croft tenancy,

(b) the tenancy of a dwelling-house, or

has been created over land at least part of which is eligible land.

(2) In this section—

“principal subjects” means eligible land any part of which is the tenanted land,

“tenanted land” means the land over which the tenancy has been created.

(3) Where this section applies, a Part 5 community body may apply, under section 54, to buy the interest mentioned in subsection (4)—

(a) where—

(i) it is simultaneously applying, or

(ii) it has made an application in respect of which the Scottish Ministers have not made a decision,

to buy the principal subjects, or

(b) if the conditions set out in subsection (5) are met, during the relevant period.

(4) The interest is the interest of the tenant over so much of the tenanted land as is comprised within the principal subjects.

(5) The conditions are that the Part 5 community body or, as the case may be, the third party purchaser—

(a) has provided confirmation under section 62(1) or, as the case may be, (2) of its intention to proceed to buy the principal subjects, or

(b) has bought and retained those subjects in accordance with the provisions of this Part.

(6) In this section “relevant period” means the period beginning with the date on which the Scottish Ministers consented to the application under section 54 to buy the principal subjects and ending—

(a) where the Part 5 community body or, as the case may be, the third party purchaser does not proceed to exercise its right to buy those subjects, on the date—

(i) on which it withdraws, under section 62(3)(b) or, as the case may be, (4)(b), its confirmation so to proceed, or

(ii) of its failure otherwise to complete the purchase, or

(b) where the Part 5 community body or, as the case may be, the third party purchaser has bought and retained those subjects, 5 years after the date on which the Part 5 community body or the third party purchaser bought those subjects.

(7) In this Part “tenant” includes sub-tenant.

Part 5 community bodies

49

(1) A Part 5 community body is, subject to subsection (7)—

(a) where a body applies under section 54(1)(a) to exercise the right to buy itself, a body falling within subsection (2), (3) or (4),

(b) where a body nominates a third party purchaser to exercise the right to buy under section 54(1)(b), a body falling within subsection (5),

(2) A body falls within this subsection if it is a company limited by guarantee the articles of association of which include the following—

(a) a definition of the community to which the company relates,

(b) provision enabling the company to exercise the right to buy land under this Part,

(d) provision that at least three quarters of the members of the company are members of the community,

(e) provision whereby the members of the company who consist of members of the community have control of the company,

(f) provision ensuring proper arrangements for the financial management of the company,

(g) provision that any surplus funds or assets of the company are to be applied for the benefit of the community, and

(h) provision that, on the winding up of the company and after satisfaction of its liabilities, its property (including any land acquired by it under this Part) passes—

(i) to such other community body as may be approved by the Scottish Ministers, or

(ii) if no other community body is so approved, to the Scottish Ministers or to such charity as the Scottish Ministers may direct.

(3) A body falls within this subsection if it is a Scottish charitable incorporated organisation (a “SCIO”) the constitution of which includes the following—

(a) a definition of the community to which the SCIO relates,

(b) provision enabling the SCIO to exercise the right to buy land under this Part,

(d) provision that at least three quarters of the members of the SCIO are members of the community,

(e) provision under which the members of the SCIO who consist of members of the community have control of the SCIO,

(f) provision ensuring proper arrangements for the financial management of the SCIO,

(g) provision that, on the request of any person for a copy of the minutes of a meeting of the SCIO, the SCIO must, if the request is reasonable, give the person within 28 days of the request a copy of those minutes,

(h) provision that, where a request of the type mentioned in paragraph (g) is made, the SCIO—

(i) may withhold information contained in the minutes, and

(ii) if it does so, must inform the person requesting a copy of the minutes of its reasons for doing so, and

(i) provision that any surplus funds or assets of the SCIO are to be applied for the benefit of the community.

(4) A body falls within this subsection if it is a community benefit society the registered rules of which include the following—

(a) a definition of the community to which the society relates,

(b) provision enabling the society to exercise the right to buy land under this Part,

(d) provision that at least three quarters of the members of the society are members of the community,

(e) provision under which the members of the society who consist of members of the community have control of the society,

(f) provision ensuring proper arrangements for the financial management of the society,

(g) provision that, on the request of any person for a copy of the minutes of a meeting of the society, the society must, if the request is reasonable, give the person within 28 days of the request a copy of those minutes,

(h) provision that, where a request of the type mentioned in paragraph (g) is made, the society—

(i) may withhold information contained in the minutes, and

(ii) if it does so, must inform the person requesting a copy of the minutes of its reasons for doing so, and

(i) provision that any surplus funds or assets of the society are to be applied for the benefit of the community.

(5) A body falls within this subsection if it is a body corporate having a written constitution that includes the following—

(a) a definition of the community to which the body relates,

(b) provision that the majority of the members of the body are to be members of that community,

(d) provision that membership of the body is open to any member of that community,

(e) a statement of the body's aims and purposes, including the promotion of a benefit for that community, and

(f) provision that any surplus funds are to be applied for the benefit of that community.

(6) The Scottish Ministers may, if they think it in the public interest to do so, disapply the requirement specified in subsection (2)(c), (3)(c) or (4)(c) in relation to any body they may specify.

(7) A body is not a Part 5 community body unless the Scottish Ministers have given it written confirmation that they are satisfied that the main purpose of the body is consistent with furthering the achievement of sustainable development.

(8) The Scottish Ministers may by regulations modify subsections (2), (3), (4), (5) and (6).

(9) A community—

(a) is defined for the purposes of subsection (2), (3), (4) and (5) by reference to a postcode unit or postcode units or a type of area as the Scottish Ministers may by regulations specify (or both such unit and type of area), and

(b) comprises the persons from time to time—

(i) resident in that postcode unit or in one of those postcode units or in that specified type of area, and

(ii) entitled to vote, at a local government election, in a polling district which includes that postcode unit or those postcode units or that specified type of area (or part of it or them).

(10) The articles of association of a company which is a Part 5 community body may, despite the generality of paragraph (h) of subsection (2), provide that its property may, in the circumstances mentioned in that paragraph, pass to another person only if that person is a charity.

(11) In this section—

“charity” means a body entered in the Scottish Charity Register,

“community benefit society” means a registered society (within the meaning of section 1 of the Co-operative and Community Benefit Societies Act 2014) registered as a community benefit society under section 2 of that Act,

“company limited by guarantee” has the meaning given by section 3(3) of the Companies Act 2006,

“postcode unit” means an area in relation to which a single postcode is used to facilitate the identification of postal service delivery points within the area,

“registered rules” has the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014 (as that meaning applies in relation to community benefit societies),

“Scottish charitable incorporated organisation” has the meaning given by section 49 of the Charities and Trustee Investment (Scotland) Act 2005.

Provisions supplementary to section 49

50

(1) A Part 5 community body—

(a) which has bought land under this Part, any part of which remains in its ownership, and

(b) which modifies its memorandum, articles of association, constitution or registered rules (as defined in section 49(11)),

must, as soon as possible after such modification, notify the Scottish Ministers in writing of the modification.

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