§ Lynne JonesTo ask the Secretary of State for Transport, Local Government and the Regions what duty of care is required for members of the boards of registered social landlords when undertaking investment decisions; and what the consequences are of failure to meet this duty. [38093]
§ Ms KeebleMembers of the boards of registered social landlords (RSLs) have the same fiduciary duty to the RSL as any company director and, if the RSL is a charity, the same duty as any other charity trustee. The consequences of failing to meet their duties will also be the same.
The Housing Corporation, as regulator of RSLs, lays down in its Regulatory Code the fundamental obligations it expects RSLs to meet: that they must be viable, well-governed and well-managed. RSLs' governing bodies are expected to provide leadership and control and, among other things, to protect public investment in the sector. Where an RSL falls short of its obligations, the corporation has statutory powers to take action.