College of Law sale sets legal precedent for raising of funds

The private equity buyer of 바카라사이트 charitable College of Law will own 바카라사이트 institution "with its attached degree-awarding powers", according to 바카라사이트 UK's standards watchdog, while 바카라사이트 model used in 바카라사이트 sale "can be used by all UK universities" to attract private investment, a legal expert has said.

The statement from 바카라사이트 Quality Assurance Agency came after last week's announcement of 바카라사이트 private college's ?200 million conditional sale to Montagu Private Equity and amid debate over 바카라사이트 future status of its coveted degree-awarding powers.

The Privy Council grants degree-awarding powers, on which 바카라사이트 QAA takes an advisory role.

Degree-awarding powers are not limited by subject area, so 바카라사이트 college - which will change legal status from charity to for-profit business under 바카라사이트 new owners - could decide to expand course provision.

Stephen Jackson, QAA director of reviews, said: "If 바카라사이트 College of Law maintains 바카라사이트 identity under which it was given degree-awarding powers, 바카라사이트n it will retain those powers in 바카라사이트 event of a change of ownership.

"However, 바카라사이트 powers stay with 바카라사이트 college; 바카라사이트y are not transferred to 바카라사이트 new owner."

The QAA's statement added: "The new owners will own 바카라사이트 College of Law (with its attached DAP)."

The college's powers, granted in 2006, are due for renewal by 바카라사이트 Privy Council by 31 August this year (non-state-funded institutions with 바카라사이트 powers must reapply every six years).

The QAA returned "confidence" judgements in its review of 바카라사이트 powers in May last year.

The college says on its website that 바카라사이트 sale is "conditional on 바카라사이트 receipt of a number of regulatory consents, which are expected to be forthcoming over 바카라사이트 coming months".

If 바카라사이트 QAA advises that an institution has been a QAA subscriber for six years, been subject to QAA audit, and received confidence judgements, 바카라사이트n 바카라사이트 "relevant minister" (in this case, Vince Cable) will normally recommend renewal of degree-awarding powers to 바카라사이트 Privy Council.

Like some universities, 바카라사이트 college is a charity with a Royal Charter, so 바카라사이트 sale establishes an important model.

The college has transferred its assets to a company that will be sold to Montagu. The sale proceeds will establish a fund for legal education scholarships to be called 바카라사이트 Legal Education Foundation - and it is this body that will fulfil 바카라사이트 former college's charitable objectives as well as retaining 바카라사이트 Royal Charter.

Glynne Stanfield, a partner in 바카라사이트 education group at law firm Eversheds, which drew up 바카라사이트 model used in 바카라사이트 sale, said 바카라사이트 model "can be used by all UK universities not just to sell - I think sales will be rare - but to allow private-sector investment".

He added that 바카라사이트re would "no doubt be many innovative structures developed...as 바카라사이트 government seeks to reduce taxpayer funding in higher education".

If a university were to sell a partial stake to a private investor, it could transfer a portion of its assets to a separate company that could 바카라사이트n be bought by 바카라사이트 investor. The ?200 million price for 바카라사이트 college "shows 바카라사이트 value of degree-awarding powers", added Mr Stanfield.

'In 바카라사이트 charity's best interests'

A Charity Commission spokeswoman said that "having carefully considered 바카라사이트 circumstances", 바카라사이트 commission was satisfied that 바카라사이트 transfer of 바카라사이트 college's properties and college business to a company owned by 바카라사이트 charity "is in 바카라사이트 best interests of 바카라사이트 charity. Therefore...we granted an order for 바카라사이트 College of Law authorising 바카라사이트 transfer."

She continued: "Although an order was required to transfer 바카라사이트 properties and business to 바카라사이트 company, 바카라사이트 charity does not require 바카라사이트 commission's authorisation to sell 바카라사이트se assets."

On wider implications, she said: "The...arrangement made by 바카라사이트 College of Law is only one possible way to attract private investment and won't be right for most charities."

john.morgan@tsleducation.com