Recommendation 82

Removal of directors

Accepted
Provision should be made for regulatory intervention to require the removal or suspension form office after due process of a person whom the regulator is satisfied is not or is no longer a fit and proper person, regardless of whether the trust is in significant breach of its authorisation or licence.

Under the revised registration requirements, in cases where a director was deemed by the Care Quality Commission to be unfit, the Care Quality Commission will be able to insist on their removal by placing a condition on the providers’ registration. If the provider failed to remove the director that would be an offence for breach of the condition, and the provider would be liable to prosecution.

The government proposes that the fit and proper persons test will now be used as a mechanism for introducing a scheme for barring directors who are unfit from individual posts by the Care Quality Commission at the point of registration.  Where a director is considered by the Care Quality Commission to be unfit it could either refuse registration, in the case of a new provider, or require the removal of the director on inspection, or following notification of a new appointment. Further details will be set out in the response to the consultation on corporate accountability which will be published shortly. The government plans to publish the draft regulations for consultation at the same time.

Update

The Department of Health has consulted on a new registration requirement that all directors of providers registered with the Care Quality Commission must meet a fit and proper person test. The Care Quality Commission will be able to insist on the removal of directors that fail this test. The consultation included how the revised fit and proper person requirement will work, and questions about the impact of the new regulations. The consultation ran from 27 March to 25 April 2014.The Fit and Proper Persons Test Regulations have been passed by Parliament and are in place in November 2014 for NHS organisations and from April 2015 for other organisations.