Licensing (Alcohol Education and Research) Act 1981

Year1981


Licensing (AlcoholEducation and Research)Act 1981

1981 CHAPTER 28

An Act to abolish the functions of compensation authorities under the Licensing Act 1964 and to use the assets remaining in the compensation funds managed by those authorities for education about and research into the misuse of alcohol and for other purposes.

[2nd July 1981]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Abolition of compensation authorities

Abolition of compensation authorities

S-1 Termination of functions of compensation authorities under the Licensing Act 1964.

1 Termination of functions of compensation authorities under the Licensing Act 1964.

(1) After the commencement of this Act—

(a ) no application for the renewal, transfer or removal of an old on-licence may be referred by the licensing justices to the compensation authority under section 13 of the Licensing Act 1964 (under which such an application may be refused by the authority on grounds under the other than those specified in section 12 of that Act, but subject to the payment of compensation);

(b ) no proposed surrender of such a licence may be so referred under section 18(1)(b ) of that Act (which provides for the payment of compensation in certain cases where a renewal might properly have been refused under section 13); and

(c ) the powers of compensation authorities under section 17 of that Act to impose charges for the benefit of their compensation fund and to borrow for the purpose of paying compensation are no longer exercisable.

(2) Where in a pending case a compensation authority have decided to refuse the renewal, transfer or removal of the licence but, when the amount of compensation has been ascertained, it appears that the authority have not sufficient funds available in their compensation fund to pay the compensation, then, unless the persons among whom the compensation falls to be divided agree to take instead such sum as is available, the authority shall rescind its decision and notify the renewal authority accordingly and the renewal, transfer or removal of the licence shall cease to be provisional.

(3) Where a compensation authority have decided in more than one pending case to refuse the renewal, transfer or removal of the licence, then—

(a ) unless it appears to the authority that the aggregate amount of compensation payable is unlikely to exceed the amount available in the authority's compensation fund, no payment of compensation shall be made in any of those cases until the amounts payable in all those cases are ascertained; and

(b ) if it then appears that the aggregate amount of compensation payable exceeds the amount available in the authority's compensation fund, the persons between whom the compensation falls to be divided may agree to an abatement of their entitlement so as to reduce the aggregate amount of compensation to the amount available, but if no such agreement is come to the authority shall determine the order in which the cases are to rank for payment of compensation.

S-2 Appointment of the liquidator.

2 Appointment of the liquidator.

(1) The Secretary of State shall appoint a person (referred to in this Act as ‘the liquidator’) to perform the functions specified in the following provisions of this Act in connection with the assets of compensation funds.

(2) The liquidator shall be paid such remuneration as the Secretary of State may determine with the consent of the Minister for the Civil Service.

(3) The liquidator's remuneration and his expenses in performing his functions under this Act shall be charged on the funds in his hands from time to time.

(4) The liquidator shall not be regarded as acting on behalf of the Crown.

(5) In Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (disqualifying offices) at the appropriate place there is inserted—

(5)‘Liquidator appointed under section 2 of the Licensing (Alcohol Education and Research) Act 1981.’.

S-3 Final accounts of authorities and powers of liquidator.

3 Final accounts of authorities and powers of liquidator.

(1) Each compensation authority shall, as soon as reasonably practicable after the disposal of any pending cases or, if the authority have no such cases, as soon as reasonably practicable after the commencement of this Act, make up accounts for their compensation fund and prepare a financial statement in the form required by Rule 61 of the Licensing Rules 1910 .

(2) Rules 62 and 63 of those Rules (audit of accounts and certification of financial statement) shall apply in relation to the accounts and statement prepared under subsection (1).

(3) A copy of the financial statement, as certified by the auditor, shall be sent by the compensation authority to the liquidator, together with a copy of any report on it by the auditor.

(4) The liquidator may, at any time after receiving a copy of an authority's final financial statement, by notice in writing given to the authority direct them to realise any assets of their compensation fund specified in the notice and to discharge any liabilities so specified, being liabilities which fall to be discharged out of the fund.

(5) The liquidator shall, as soon as may be after receiving a copy of an authority's final financial statement, by notice in writing given to the authority appoint a day on which—

(a ) there shall vest in him by virtue of this subsection the assets of the authority's compensation fund, together with any accounting or other records of the authority relating to the fund; and

(b ) any liabilities of the authority falling to be discharged out of the fund shall become liabilities of the liquidator.

(6) Where any securities are standing in the books of a company in the name of a compensation authority, a certificate purporting to be signed by or on behalf of the liquidator and stating that the securities to which the certificate relates and any dividends or interest thereon have vested in him by virtue of subsection (5) is sufficient authority to the company to transfer the securities into the name of the liquidator or, as the case may be, to pay the dividends or interest to him.

In this subsection—

‘company’ includes the Bank of England and any company or person keeping books in which any securities are registered or inscribed; and

‘securities’ has the same meaning as in the Prevention of Fraud (Investment) Act 1958 .

S-4 Dissolution of authorities and compensation for loss of office.

4 Dissolution of authorities and compensation for loss of office.

(1) A compensation authority shall cease to exist on the day appointed in relation to that authority under section 3(5).

(2) Where an individual who is clerk or treasurer of a compensation authority suffers loss of office on the authority ceasing to exist he is entitled to be paid by the liquidator compensation for loss of office calculated in accordance with the following provisions of this section.

(3) The amount of compensation shall be calculated by reference to the period for which the officer held the office in question and reckoning backwards the number of complete years falling within that period, and allowing—

(a ) 3 per cent. of the relevant annual remuneration for each year during which the officer was not below the age of 41; and

(b ) 2 per cent. of the relevant annual remuneration for each such year not within paragraph (a ).

(4) In subsection (3) ‘relevant annual remuneration’ means the amount of remuneration paid to the officer concerned in respect of the twelve months immediately before his office ceased to exist.

(5) For the purposes of subsection (3) no account shall be taken of any period for which the officer concerned was not paid any remuneration in respect of his office or for which he was paid but did not retain the remuneration for his own use.

Application of assets of compensation funds

S-5 Application of funds in hands of liquidator.

5 Application of funds in hands of liquidator.

(1) Subject to the provisions of this Act, the assets received by the liquidator shall be applied as follows—

(a ) one half shall be transferred to the Alcohol Education and Research Fund established under section 7;

(b ) one quarter shall be applied for other charitable purposes in accordance with section 8; and

(c ) one quarter shall be applied in making repayments under section 9.

(2) On receiving the assets of a compensation fund the liquidator shall divide the assets into three funds in the proportions specified in subsection (1).

(3) When it appears to the liquidator that he may properly do so, having defrayed or made provision for defraying his expenses, he shall transfer to the appropriate body the funds applicable as mentioned in paragraphs (a ) and (b ) of subsection (1).

(4) Assets other than cash received by the liquidator shall be valued for the purposes of this section and may be realized by him.

(5) Funds in the liquidator's hands which are not invested and are not required for the time being for the purposes of his functions shall be placed by him on deposit at interest and the interest added to the principal.

S-6 Establishment of the Alcohol Education and Research Council.

6 Establishment of the Alcohol Education and Research Council.

(1) There shall be a body corporate known as...

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