Public Benefit Corporations (Hansard, 1 April 2003)

§ Mr. Flight
To ask the Secretary of State for Health whether he has made an assessment of the optimum number of members of a public benefit corporation; whether the optimum number of members of a public benefit corporation will vary with the size of(a) its public constituency and (b) its staff constituency; and whether he has made an assessment of the optimum proportion of the number of members of a public benefit corporation in relation to the size of (i) its public constituency, (ii) its staff constituency and (iii) its public and staff constituencies combined. [105121]

§ Mr. Hutton
Subject to parliamentary approval, national health service foundation trusts will be established as public benefit corporations. Minimum requirements for the membership of public benefit corporations are set out in schedule 1 of the Health and Social Care (Community Health and Standards) Bill. Beyond these minimum requirements, proposals for local membership will not be prescribed centrally as governance arrangements will need to be appropriate to the local circumstances of each NHS foundation trust.
The Independent Regulator will only authorise an application for NHS foundation trust status if he is satisfied that, among other things, the constitution meets the statutory requirements and necessary steps to prepare for foundation status have been taken, including whether all sections of the community are fairly represented.
693W

§ Mr. Flight
To ask the Secretary of State for Health in what ways the board of directors of a public benefit corporation will be accountable to(a) the members of the corporation and (b) the board of governors of the corporation. [105143]

§ Mr. Hutton
Subject to parliamentary approval, national health service foundation trusts will be established as public benefit corporations. The minimum requirements for the constitution of public benefit corporations, including the accountability requirements for the board of directors, are set out in schedule 1 of the Health and Social Care (Community Health and Standards) Bill. Subject to approval by the Independent Regulator, individual NHS foundation trusts may add to these minimum requirements under their constitution.

§ Mr. Flight
To ask the Secretary of State for Health whether the board of governors of a public benefit corporation will have any role other than to appoint and set the terms of employment of the non-executive directors and the auditor. [105145]

§ Mr. Hutton
Subject to Parliamentary approval, national health service foundation trusts will be set up as public benefit corporations. The minimum requirements for the constitution of public benefit corporations, including the role and function of the Board of Governors, are set out in Schedule 1 of the Health and Social Care (Community Health and Standards) Bill. Subject to the approval by the Independent Regulator, individual NHS foundation trusts may add to these minimum requirements under their constitution.

§ Mr. Flight
To ask the Secretary of State for Health whether public benefit corporations will be able to pay dividends other than those paid to the Consolidated Fund; and to whom these dividends would be paid. [105146]

§ Mr. Hutton
Subject to parliamentary approval, national health service foundation trusts will be set up as public benefit corporations. NHS foundation trusts will not pay dividends (apart from those payable on Public Dividend Capital).