Education Reform Act 1988 (c. 40)

(The document as of February, 2008)

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(5) The reference in subsection (4) above to provision for education includes a reference to provision of any benefits or services for which provision is made by or under the enactments relating to education.

(6) The governing body of a grant-maintained school shall provide the local education authority from whom sums are recoverable under section 81 of this Act in respect of the school with such information relating to the registered pupils at the school as the authority may require for the purposes of claiming any amount in respect of any such pupil from another authority under section 51 of the 1986 Act or by virtue of regulations under section 52 of that Act.

Admissions

83 Admissions

(1) The governing body of a grant-maintained school shall not fix as the number of pupils in any relevant age group it is intended to admit to the school in any school year a number which is less than the approved admission number for that age group.

(2) Subject to subsection (3) below, for the purposes of subsection (1) above, as it applies in relation to any such school--

(a) the approved admission number in relation to any relevant age group is the number specified in the proposals for acquisition of grant-maintained status for the school in accordance with section 62(8) of this Act;

(b) pupils intended to be admitted to the school for nursery education shall be disregarded; and

(c) pupils already so admitted intended to be transferred to a reception class at the school shall be treated as intended to be admitted to the school on their transfer.

(3) The approved admission number in relation to any relevant age group may be varied in the case of any such school with the approval of the Secretary of State.

Religious education

84 Religious education in former county schools

(1) This section applies to a grant-maintained school which was a county school immediately before it became a grant-maintained school; but the provisions of this section are subject to section 87 of this Act.

(2) Subject to the following provisions of this section, in the case of a school to which this section applies the collective worship required in the school by section 6 of this Act shall be wholly or mainly of a broadly Christian character.

(3) For the purposes of subsection (2) above, collective worship is of a broadly Christian character if it reflects the broad traditions of Christian belief without being distinctive of any particular Christian denomination.

(4) Every act of collective worship required by section 6 of this Act in the case of a school to which this section applies need not comply with subsection (2) above provided that, taking any school term as a whole, most such acts which take place in the school do comply with that subsection.

(5) Subject to subsections (2) and (4) above--

(a) the extent to which (if at all) any acts of collective worship required by section 6 of this Act which do not comply with subsection (2) above take place in such a school;

(b) the extent to which any act of collective worship in such a school which complies with subsection (2) above reflects the broad traditions of Christian belief; and

shall be such as may be appropriate having regard to any relevant considerations relating to the pupils concerned which fall to be taken into account in accordance with subsection (6) below.

(6) Those considerations are--

(a) any circumstances relating to the family backgrounds of the pupils concerned which are relevant for determining the character of the collective worship which is appropriate in their case; and

(b) their ages and aptitudes.

(7) In the case of a school to which this section applies the provision for religious education for pupils at the school which is required by section 2(1)(a) of this Act to be included in the school's basic curriculum shall be provision for religious education in accordance with the appropriate agreed syllabus.

(8) That syllabus shall not provide for religious education to be given to pupils at such a school by means of any catechism or formulary which is distinctive of any particular religious denomination; but this provision is not to be taken as prohibiting provision in that syllabus for the study of such catechisms or formularies.

(9) Subject to section 88(3) of this Act, for the purposes of subsection (7) above "the appropriate agreed syllabus" is, in relation to a school to which this section applies or to any pupils at the school, the agreed syllabus which immediately before the school became a grant-maintained school was adopted under Schedule 5 to the 1944 Act for use in the school or for those pupils.

(10) The arrangements for the collective worship in a school to which this section applies required by section 6 of this Act shall be made by the head teacher after consultation with the governing body.

(11) Subsection (12) below applies where a secondary school to which this section applies is so situated that arrangements cannot conveniently be made for the withdrawal of pupils from the school in accordance with section 9 of this Act to receive religious education elsewhere.

(12) If in any such case the governing body are satisfied--

(a) that the parents of pupils in attendance at the school desire them to receive religious education in the school in accordance with the tenets of a particular religious denomination; and

(b) that satisfactory arrangements have been made for the provision of such education to those pupils in the school and for securing that the cost of providing such education to those pupils in the school will not fall upon the governing body;

the governing body shall, unless they are satisfied that owing to any special circumstances it would be unreasonable to do so, provide facilities for the carrying out of those arrangements.

(13) No person shall be disqualified by reason of his religious opinions, or of his attending or omitting to attend religious worship, from being a teacher in, or from being otherwise employed for the purposes of, a school to which this section applies.

(14) No teacher in a school to which this section applies shall be required to give religious education or receive any less emolument or be deprived of, or disqualified for, any promotion or other advantage by reason of the fact that he does or does not give religious education or by reason of his religious opinions or of his attending or omitting to attend religious worship.

(15) References in this section to acts of collective worship in a school to which this section applies include references to any such act which under section 6 of this Act takes place otherwise than on the school premises.

85 Religious education in former controlled schools

(1) This section applies to a grant-maintained school which was a controlled school immediately before it became a grant-maintained school; but the provisions of this section are subject to section 87 of this Act.

(2) Where the parents of any pupils in attendance at a school to which this section applies have requested (whether before or after the school became a grant-maintained school) that they may receive religious education--

(a) in accordance with any provisions of the trust deed relating to the school; or

(b) where provision for that purpose is not made by such a deed, in accordance with the practice observed in the school before it became a controlled school;

the foundation governors shall, unless they are satisfied that owing to special circumstances it would be unreasonable so to do, make arrangements for securing that such religious education is given to those pupils at the school during not more than two periods in each week.

(3) In the case of a school to which this section applies the provision for religious education for pupils at the school which is required by section 2(1)(a) of this Act to be included in the school's basic curriculum shall be provision for religious education--

(a) in accordance with any arrangements made under subsection (2) above; or

(b) subject to any such arrangements, in accordance with the appropriate agreed syllabus.

(4) Subject to section 88(3) of this Act, for the purposes of subsection (3) above "the appropriate agreed syllabus" is, in relation to a school to which this section applies or to any pupils at the school, the agreed syllabus which immediately before the school became a grant-maintained school was adopted under Schedule 5 to the 1944 Act for use in the school or for those pupils.

(5) No person shall be disqualified by reason of his religious opinions, or of his attending or omitting to attend religious worship, from being employed (otherwise than as a teacher) for the purposes of a school to which this section applies.

(6) No teacher in a school to which this section applies shall receive any less emolument or be deprived of, or disqualified for, any promotion or other advantage by reason of the fact that he gives religious education or by reason of his religious opinions or of his attending religious worship.

86 Religious education in former aided or special agreement schools

(1) This section applies to a grant-maintained school which was an aided or special agreement school immediately before it became a grant-maintained school; but the provisions of this section are subject to section 87 of this Act.

(2) In the case of a school to which this section applies the provision for religious education for pupils at the school which is required by section 2(1)(a) of this Act to be included in the school's basic curriculum shall be provision for religious education--

(a) in accordance with any provisions of the trust deed relating to the school or, where provision for that purpose is not made by such a deed, in accordance with the practice observed in the school before it became a voluntary school; or

(b) in accordance with any arrangements made under this section.

(3) Where the parents of pupils in attendance at such a school--

(a) desire them to receive religious education in accordance with any agreed syllabus adopted by the local education authority for the area in which the school is situated for use in schools maintained by the authority; and

(b) cannot with reasonable convenience cause those pupils to attend any school at which that syllabus is in use;

then, unless the governing body are satisfied that owing to any special circumstances it would be unreasonable to do so, they shall make arrangements for religious education in accordance with that syllabus to be given to those pupils in the school during the times set apart for the giving of religious education in the school in accordance with the provision for that purpose included in the school's basic curriculum by virtue of section 2(1)(a) of this Act.

(4) No person shall be disqualified by reason of his religious opinions, or of his attending or omitting to attend religious worship, from being employed (otherwise than as a teacher) for the purposes of a school to which this section applies.

(5) No teacher in a school to which this section applies shall receive any less emolument or be deprived of, or disqualified for, any promotion or other advantage by reason of the fact that he gives religious education or by reason of his religious opinions or of his attending religious worship.

87 Changes in religious education

(1) Where, in the case of a grant-maintained school to which section 84(2) to (8) or 85(3) of this Act for the time being applies, proposals that the required provision for religious education should be provision for religious education in accordance with the tenets of a particular religious denomination are approved under section 89 of this Act, then, from the time at which the proposals fall to be implemented--

(a) the required provision for religious education shall (subject to subsection (2) below) be provision for religious education either in accordance with the tenets of that religious denomination or in accordance with any arrangements made under section 86(3) of this Act (as applied by paragraph (b) below);

(b) section 86(3) to (5) of this Act shall apply in relation to the school; and

(c) subject to section 88(5) of this Act, any provisions of section 84 or 85 of this Act which apply in relation to the school shall cease to apply in relation to it.

(2) Where, in the case of any grant-maintained school, proposals that the required provision for religious education should be provision for religious education otherwise than in accordance with the tenets of a particular religious denomination are approved under section 89 of this Act, then, from the time at which the proposals fall to be implemented--

(a) section 84(2) to (8) and (10) to (15) of this Act shall apply in relation to the school; and

(b) any provisions of section 85 or 86 of this Act which apply in relation to the school shall cease to apply in relation to it.

(3) Subject to section 88(3) of this Act, for the purposes of section 84(7) of this Act in its application to a school by virtue of subsection (2) above "the appropriate agreed syllabus" in relation to a school or to any pupils at the school is--

(a) the agreed syllabus adopted, or deemed to be adopted, under Schedule 5 to the 1944 Act by the local education authority for the area in which the school is situated for use in the schools maintained by the authority at the time at which the proposals referred to in that subsection fall to be implemented; or

(b) where at that time that authority have adopted, or are deemed to have adopted, under that Schedule for use in those schools more than one agreed syllabus, whichever of them the governing body shall determine.

(4) In this section "the required provision for religious education", in relation to a school, means the provision for religious education for pupils at the school which is required by section 2(1)(a) of this Act to be included in the school's basic curriculum.

88 Religious education: supplementary

(1) Subsections (2) and (3) below shall have effect where any agreed syllabus for the time being adopted by a local education authority which is in use at a grant-maintained school (or for any pupils at the school) falls to be reconsidered under Schedule 5 to the 1944 Act.

(2) The conference convened under that Schedule to reconsider the syllabus shall consult the governing body of the grant-maintained school before making any recommendation.

(3) Where any new syllabus is adopted, or deemed to be adopted, by the authority under that Schedule in substitution for the existing syllabus, then, for the purposes of section 84(7) of this Act (including that subsection in its application to a school by virtue of section 87(2) of this Act) or 85(3) of this Act "the appropriate agreed syllabus" in relation to the grant-maintained school (or to the pupils in question) shall be--

(a) the new syllabus so adopted, or deemed to be adopted; or

(b) if more than one new syllabus is so adopted, or deemed to be adopted, whichever of them the governing body shall determine.

(4) Where, in accordance with section 84, 85 or 86 of this Act or any proposals approved under section 89 of this Act, religious education is given to pupils at a grant-maintained school otherwise than in accordance with an agreed syllabus, such religious education shall not be subject to inspection under section 77 of the 1944 Act.

(5) Without prejudice to sections 85(5) and (6) and 86(4) and (5) of this Act, where--

(a) immediately before a school to which section 85 or 86 of this Act applies became a grant-maintained school any of the provisions of section 30 of the 1944 Act applied with respect to a teacher in the school; or

(b) the provisions of section 84(13) and (14) of this Act apply with respect to a teacher employed in a grant-maintained school falling within subsection (1) of section 87 of this Act immediately before any proposals such as are referred to in that subsection fall to be implemented;

those provisions shall continue to apply to him until he ceases to be employed as a teacher in the school.

Control over alteration and change of site

89 Change of character or enlargement of grant-maintained school

(1) Subject to subsection (2) below, where the governing body of a grant-maintained school intend to make a significant change in the character, or significant enlargement of the premises, of the school they shall publish proposals for that purpose in such manner as may be required by regulations made by the Secretary of State and submit to him a copy of the published proposals.

(2) No proposals shall be published under this section for the purpose of making a significant change in the religious character of such a school unless the trustees of the school (if any) have given their consent in writing to the change in question.

(3) Proposals published under this section shall include particulars--

(a) of the time or times at which it is intended to implement the proposals; and

(b) of the number of pupils intended to be admitted to the school in each relevant age group in the first school year in relation to which the proposals have been wholly implemented.

(4) For the purposes of subsection (3)(b) above--

(a) pupils intended to be admitted to the school for nursery education shall be disregarded; and

(b) pupils already so admitted intended to be transferred to a reception class at the school shall be treated as intended to be admitted to the school on their transfer.

(5) Proposals published under this section shall be accompanied by a statement--

(a) describing any effect the implementation of the proposals would have on provision at the school for pupils who have special educational needs; and

(b) explaining the effect of subsection (6) below.

(6) Before the end of the period of two months beginning with the date of publication of the proposals, any of the following may submit objections to the proposals to the Secretary of State--

(a) any ten or more local government electors;

(b) the governing body of any school affected by the proposals; and

(7) The proposals shall require the approval of the Secretary of State; and he may reject them, approve them without modification or, after consultation with the governing body by whom they were made, approve them with such modifications as he thinks desirable.

(8) It shall be the duty of the governing body of a grant-maintained school to implement any proposals with respect to the school which have been approved by the Secretary of State under this section; but the Secretary of State may, at the request of the governing body, modify any proposals which they are required to implement by virtue of this subsection.

(9) Neither the governing body of a grant-maintained school nor any other person shall do or undertake anything for which proposals are required to be published and submitted in accordance with this section until such proposals have been so published and submitted and approved by the Secretary of State.

(10) The Secretary of State may in any case allow such steps to be taken by the governing body of a grant-maintained school pending compliance with the requirements of this section and the giving by him of his approval of any such proposals as he considers reasonable in the circumstances of the case.

(11) No decision taken at a meeting of the governing body of a grant-maintained school that would result in the submission of proposals under this section shall have effect unless it is confirmed at a second meeting of the governing body held not less than twenty-eight days after the first.

90 Approval of school premises on change of character or enlargement

(1) Where the governing body of a grant-maintained school submit proposals under section 89 of this Act, they shall, at such time and in such form and manner as the Secretary of State may direct, submit to him for his approval--

(a) particulars of the access provision made or to be made with respect to the premises or proposed premises of the school indicating the extent to which the provision conforms with the minimum requirements of the Design Note so far as they are relevant to school premises; and

(b) such other particulars with respect to the premises or proposed premises of the school as he may require.

(2) In subsection (1)(a) above--

"access provision", in relation to school premises, means provision as to the means of access both to and within the premises; and
"the Design Note" means Design Note 18 "Access for Disabled People to Educational Buildings" published in 1984 on behalf of the Secretary of State, or any document replacing that Note prescribed by regulations under the [1971 c. 78.] Town and Country Planning Act 1971.

(3) Where the proposals are approved, the governing body shall implement the proposals in accordance with the particulars submitted under this section as approved by the Secretary of State.

(4) In section 63(2) of the 1944 Act (exemption from building regulations, etc.) references to plans approved by the Secretary of State shall include references to any particulars submitted to and approved by him under this section.

91 Change of site

The Secretary of State may by order authorise the transfer of a grant-maintained school to a new site; and no such school shall be transferred to a new site without the authority of an order under this section.

Discontinuance of grant-maintained schools

92 Discontinuance by governing body

(1) The governing body of a grant-maintained school shall not discontinue the school except in pursuance of proposals published and approved under this section.

(2) Where the governing body of such a school--

(a) decide by a resolution passed at a meeting of that body ("W") to publish proposals under this section for the discontinuance of the school and confirm that decision by a resolution ("W") passed at a subsequent meeting of that body held not less than twenty-eight days after that at which the first resolution was passed; and

(b) give notice in writing of the second resolution to the local education authority for the area in which the school is situated;

they may within the period of six months beginning with the date of the second resolution publish proposals for that purpose in such manner as may be required by regulations made by the Secretary of State and shall submit to him a copy of the published proposals.

(3) The notice required by subsection (2)(b) above shall be given as soon as practicable after the passing of the resolution to which it refers.

(4) The published proposals--

(a) shall specify the proposed date of discontinuance of the school; and

(b) shall be accompanied by a statement--

(i) indicating whether or not any proposals with respect to the establishment of a new school on the premises of the school have been published under section 12 or 13 of the 1980 Act (which relate respectively to county schools and voluntary schools); and

(ii) explaining the effect of subsection (5) below.

(5) Before the end of the period of two months beginning with the date of publication of the proposals, any of the following may submit objections to the Secretary of State--

(a) any ten or more local government electors;

(b) the governing body of any school affected by the proposals; and

(6) The Secretary of State may reject any proposals under this section, approve them without modification or, after consultation with the governing body, approve them with the substitution of a different date for the date of discontinuance proposed.

(7) If the Secretary of State approves proposals under this section with respect to a grant-maintained school--

(a) the governing body of the school shall cease to conduct the school; and

(b) the Secretary of State's duty to maintain the school shall cease;

on the date of discontinuance specified in the proposals as approved or on any other date subsequently specified by the Secretary of State at the request of the governing body (whether in substitution for the date specified in the proposals as approved or in substitution for a date previously specified under this subsection).

93 Withdrawal of grant by Secretary of State

(1) The Secretary of State may cease to maintain a grant-maintained school by giving notice of his intention to do so to the governing body of the school under this section; and on the date specified in any such notice as the date on which the Secretary of State intends to cease to maintain the school the Secretary of State's duty to maintain the school shall cease.

(2) Subject to the following provisions of this section--

(a) a notice under this section may not specify as the date on which the Secretary of State intends to cease to maintain such a school a date falling less than seven years after the date of the notice; and

(b) before giving such a notice the Secretary of State shall consult--

(i) the governing body of the school;

(ii) the local education authority for the area in which the school is situated;

(iii) the statutory diocesan body responsible for schools in the diocese in which the school is situated; and

(iv) the former maintaining authority, if that authority is not the local education authority for the area in which the school is situated.

(3) Subsection (2) above shall not apply where the Secretary of State is satisfied, in the case of any grant-maintained school, that the school as currently constituted or conducted is unsuitable to continue as a grant-maintained school on all or any of the following grounds--

(a) that the number of registered pupils at the school is too small for sufficient and suitable instruction to be provided for them at reasonable cost;

(b) that the governing body have failed for a significant period of time to carry out their duties under Chapter I of this Part;

(c) that the governing body have been guilty of substantial or persistent failure to comply or secure compliance with any other requirement imposed by or under this Act or any other enactment.

(4) In any case within subsection (3) above, the Secretary of State may give to the governing body of the school a notice stating the grounds on which he considers that the school as currently constituted or conducted is unsuitable to continue as a grant-maintained school together with full particulars of the matters relevant to each such ground.

(5) Where any of the matters of which particulars are given in a notice under subsection (4) above are stated in the notice to be in the opinion of the Secretary of State irremediable, the notice shall also state that the Secretary of State intends to cease to maintain the school on a date specified in the notice.

(6) Where subsection (5) above does not apply in the case of any notice under subsection (4) above, the notice shall--

(a) state that the Secretary of State intends to cease to maintain the school unless the matters of which particulars are given in the notice are remedied;

(b) specify the measures necessary in the opinion of the Secretary of State to remedy those matters; and

(c) specify the time, not being less than six months after the date of the notice, within which the governing body are required to take those measures.

(7) Where the governing body of a grant-maintained school fail to take the measures required by a notice under subsection (4) above within the time specified in the notice or allowed by any previous notice under this subsection, the Secretary of State shall within the period of two months beginning with the date next following the end of that time either--

(a) give notice to the governing body extending the time within which those measures are required to be taken; or

(b) after consulting the local education authority for the area in which the school is situated, give notice that he intends to cease to maintain the school on a date specified in the notice.

(8) The Secretary of State may by notice given to the governing body--

(a) withdraw any notice under subsection (1), (4) or (7)(b) above; or

(b) vary--

(i) any notice under subsection (1) or (7)(b) above; or

(ii) any notice under subsection (4) above to which subsection (5) above applies;

by substituting a later date for the date for the time being specified in the notice as the date on which he intends to cease to maintain the school; or

(c) vary any notice under subsection (4) above to which subsection (6) above applies, so far as relates to the measures required by the notice to remedy the matters of which particulars are given in the notice.

(9) If by virtue of subsection (8)(c) above the Secretary of State varies any notice under subsection (4) above so as to require different measures to be taken he shall also substitute for the time specified in the notice as the time within which the governing body are required to take the measures specified in the notice as varied a time ending--

(a) not less than six months after the date of the notice of variation; and

(b) where the time so specified has been extended under subsection (7) above, not earlier than that time as so extended.

(10) Any variation under subsection (9) above of the time specified in a notice under subsection (4) above is without prejudice to any further extension of that time under subsection (7) above.

(11) Any notice under this section shall be in writing; and references in this section to the date of any such notice given to a governing body under this section are references to the date on which it is given to the governing body.

Winding up and disposal of property

94 Winding up

(1) Where in the case of any grant-maintained school--

(a) proposals for discontinuance of the school have been approved under section 92 of this Act; or

(b) the Secretary of State has given notice to the governing body of the school under section 93 of this Act specifying a date on which he intends to cease to maintain the school;

the Secretary of State may by order make provision for the winding up of the governing body of the school and the disposal of the school property.

(2) An order made under this section may--

(a) set out a proposed timetable for the winding up and, in particular, for--

(i) securing that all property belonging to the governing body or held by any trustees on trust for the purposes of the school is brought into the custody or control of that body or those trustees (as the case may require);

(ii) discharging any liabilities of the governing body;

(iii) making any provision mentioned in paragraphs (d) to (f) below; and

(iv) the preparation and audit of the governing body's final accounts;

(b) make provision with respect to the exercise of the functions of the governing body in relation to the school, including in particular--

(i) provision requiring the governing body in the exercise of those functions to comply with any directions given by the Secretary of State;

(ii) provision authorising any of those functions to be exercised by any member of the governing body specified in the order; and

(iii) provision for the application of the seal of the governing body to be authenticated by the signature of any person so specified;

(c) make provision for conferring or imposing functions on the governing body in relation to the winding up and the management and disposal of the school property;

(d) make any provision authorised by section 95 of this Act for or in connection with the transfer of the school property;

(e) make any provision authorised by section 97 of this Act with respect to the discharge of the liabilities of the governing body and the payment of the costs of the winding up;

(f) make any provision authorised by section 98 or 99 of this Act in relation to capital expenditure in respect of the school premises;

(g) require the governing body to give to persons employed by them notice terminating their contracts of employment as from a date specified in the order; and

(h) appoint a date on which the governing body is to be dissolved.

(3) Below in this Chapter--

(a) references to a governing body in liquidation are references to a governing body in respect of whom any order has been made under this section; and

(b) references, in relation to any such governing body or the grant-maintained school conducted, or formerly conducted, by any such body, to the dissolution date are references to the date appointed in relation to that governing body by virtue of subsection (2)(h) above.

(4) The Secretary of State may make grants to a governing body in liquidation for the purpose of--

(a) discharging any liabilities of that governing body (other than section 105 loan liabilities); and

(b) meeting any costs incurred by that governing body for the purposes of the winding up under this section.

(5) The Secretary of State may impose on a governing body to whom any such payment is made such requirements as he may from time to time determine (whether before, at or after the time when the payment in question is made).

(6) The Secretary of State shall not by an order under this section appoint a date on which a governing body in liquidation is to be dissolved unless he is satisfied that--

(a) all liabilities of the governing body (other than any section 105 loan liabilities which fall to be transferred or terminated under section 97 of this Act) have been discharged;

(b) all costs of the winding up have been met; and

(c) any provision authorised by any of sections 95 to 99 of this Act which is possible and expedient in the circumstances of the case has been made and anything required to be done by the governing body for the purposes of or in connection with any such provision has been done.

(7) In this Chapter--

(a) references, in relation to a governing body in liquidation, to section 105 loan liabilities are references to any liabilities in respect of any loans made under section 105 of the 1944 Act (loans by Secretary of State towards initial capital expenditure) which were transferred to the governing body under section 74 of this Act;

(b) references, in relation to a grant-maintained school conducted or formerly conducted by a governing body in liquidation, to the school property are references to--

(i) the premises used or formerly used for the purposes of the school;

(ii) any interest belonging to the governing body or held by any trustees on trust for the purposes of the school in any dwelling-house used or held or formerly used or held for occupation by a person employed to work at the school; and

(iii) all other equipment and property used or held or formerly used or held for the purposes of the school, with the exception of money and any investments to which section 96 of this Act applies; and

(c) references to a grant-maintained school formerly conducted by a governing body in liquidation apply in circumstances where the school has been discontinued before the dissolution date and refer to the school as conducted immediately before discontinuance (and "formerly" in sub-paragraphs (i) to (iii) of paragraph (b) above applies in the same circumstances and refers to the time immediately before the discontinuance of the school concerned).

95 Disposal of school property

(1) Subject to subsection (7) below, where--

(a) a grant-maintained school conducted or formerly conducted by a governing body in liquidation was a county school immediately before it became a grant-maintained school; and

(b) proposals under section 13 of the 1980 Act that any school proposed to be established on the premises of the grant-maintained school should be maintained by a local education authority as a voluntary school have been approved;

an order under section 94 of this Act may vest the school property or any part of it in persons specified in the order to be held on trust for the purposes of the proposed school, subject to the payment by those persons of the appropriate consideration.

(2) Subject to subsection (7) below, where--

(a) a grant-maintained school conducted or formerly conducted by a governing body in liquidation was a county school immediately before it became a grant-maintained school; and

(b) any persons propose to establish on the premises of the school a new independent school;

an order under section 94 of this Act may vest the school property or any part of it in the persons proposing to establish the new school, subject to the payment by those persons of the appropriate consideration.

(3) In any case within subsection (1) or (2) above, the appropriate consideration is payable to the former maintaining authority, subject to any provision made by virtue of section 97 or 99 of this Act.

(4) Where in the case of a grant-maintained school conducted or formerly conducted by a governing body in liquidation which was a voluntary school immediately before it became a grant-maintained school proposals by a local education authority for the establishment of a new county school on the premises of the school have been published under section 12 of the 1980 Act and either--

(a) the proposals have been approved by the Secretary of State under that section; or

(b) where the proposals do not require the approval of the Secretary of State, the local education authority have determined to implement them and notified the Secretary of State of their determination in accordance with subsection (8) of that section;

an order under section 94 of this Act may vest any part of the school property which is held by persons on trust for the purposes of the school or, where all the school property is so held, the whole of the school property in the local education authority concerned beneficially, subject to the payment by that authority of the appropriate consideration.

(5) In any case within subsection (4) above the appropriate consideration is payable to the persons from whom the property is transferred, subject to any provision made by virtue of section 97 or 98 of this Act.

(6) Subject to subsections (7) and (10) below, any school property held by a governing body in liquidation immediately before the dissolution date shall vest on that date in the former maintaining authority.

(7) Subsections (1), (2) and (6) above shall not apply to any school property which is held by persons on trust for the purposes of the grant-maintained school concerned; but an order under section 94 of this Act may vest the whole or any part of any property excluded from the application of subsection (1), (2) or (6) above by virtue of this subsection in such local education authority or other person as may be specified in the order.

(8) Where it appears to the Secretary of State that any school property to be vested in a local education authority by an order made by virtue of subsection (7) above--

(a) was wholly or mainly provided at the expense of a local education authority or a former authority; or

(b) will be held by the authority for the purposes of a county or voluntary school proposed to be established on the premises of the grant-maintained school concerned;

the order may vest the property in the authority beneficially.

(9) Subject to subsection (8) above, an order made by virtue of subsection (7) above shall vest the school property in the local education authority or other person concerned on trust for such purposes as may be specified in the order.

(10) Subsection (6) above shall not apply to any items of property excluded from transfer by the Secretary of State; and the Secretary of State may exclude any item, or any class or description of items, of property from transfer if he is satisfied that that item, or items of that class or description, were procured otherwise than at the expense of the authority concerned and that it is appropriate on that account to exclude them from transfer to that authority.

(11) An order under section 94 of this Act may vest any property excluded from a transfer under subsection (6) above by virtue of subsection (10) above in such persons as may be specified in the order on such terms as may be so specified.

(12) Any property vested in any person by an order made by virtue of this section shall so vest on such date as may be specified in the order as the transfer date.

(13) In this section "the appropriate consideration" means, in relation to any school property--

(a) so far as it consists of premises (including any interest in a dwelling-house such as is mentioned in section 94(7)(b)(ii) of this Act), such an amount as the Secretary of State determines to be the market value of the premises as at the transfer date or as at a date no earlier than six months before that date; and

(b) so far as it consists of other property, such an amount as the Secretary of State determines to be a fair consideration for the transfer of that property.

(14) Nothing in any provision included in an order under section 94 of this Act by virtue of this section shall affect any interest or right of any person in, to or over any school property which is held by that person otherwise than for the purposes of the school.

96 Surplus money and investments

(1) Subject to subsection (2) below--

(a) any money held by a governing body in liquidation (whether in cash or to their account at or on deposit with any bank or other institution which may lawfully take deposits within the meaning of the [1979 c. 37.] Banking Act 1979); and

(b) any investments to which this section applies held by such a governing body;

after discharge of all their liabilities (other than any not required to be discharged before the dissolution date is appointed) and all costs of the winding up shall be paid or (as the case may be) transferred to the Secretary of State.

(2) Where the Secretary of State is satisfied as to the whole or any part of any such money or as to any such investments--

(a) that the money or that part of it was derived or (as the case may be) those investments were acquired otherwise than from grants paid by him under this Chapter; and

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