The Scottish Housing Regulator has published its latest report from its Governance Matters series which sets out what led to the near insolvency and ultimate rescue of a Registered Social Landlord (RSL).

The RSL in this latest report had multiple and serious problems with its governance and financial management which combined to bring it to the brink of insolvency. The report shows that the RSL’s governing body recognised it needed support and sought a rescue by another RSL which ensured it avoided insolvency and its continued existence as a subsidiary within a strong group.

The outcome also preserved the RSL sector’s good, creditworthy reputation.

Christine Macleod, director of governance and performance, said: “Many RSLs are well-governed by experienced and knowledgeable governing body members who recognise the vital responsibility they have to deliver good services to tenants and keep their organisations financially healthy. We know from our work with many RSLs that there is a real depth of experience and commitment across governing bodies in the sector.

“We hope that by sharing the problems faced by this governing body and how they were dealt with we can continue to promote best practice.”

The regulator’s Governance Matters series is about sharing real-life experiences, positive practice and lessons learned within the social housing sector. Many governing body members use these reports to review what happens in their own organisation and this gives them assurance about their own RSL.

Read Governance Matters – Edition 7.