The move follows a period of statutory intervention by the Regulator when independent investigations identified serious failures in how the landlord was governed.

The chair of the Co-operative was suspended in November last year when the investigations also identified urgent risks to the delivery of services to tenants and the Co-operative’s finances and assets, and serious concerns about the ability of the management committee to function effectively.

In an updated regulation plan which sets out the details of its intervention, the Regulator said it will make appointments to the Co-operative’s management committee as it does not have the number of members it requires under its rules to function. The statutory appointments will support the Co-operative’s governance and allow it to make decisions on behalf of its tenants.

Christine Macleod, director of regulation (governance and performance), said: “We’re consulting with Kincardine’s tenants about a proposed transfer of their homes to another RSL. We will make sure tenants get independent expert advice about what a potential transfer to another well-run social landlord will mean for them. Our Board will then take account of tenants’ views before making a final decision about whether or not to direct a transfer. In the meantime we will continue to intervene to support the management of services to tenants.”