If it appears to the Secretary of State that a body which is or has been an appropriate voluntary organisation, is inactive or defunct he may, in relation to any child who is or was in the care of the organisation, direct what appears to him to be the appropriate local authority to take any such action as might have been taken by the organisation or by the organisation jointly with the authority; and if apart from this section the authority would not be entitled to take that action, or would not be entitled to take it without joining the organisation in the action, it shall be entitled to do so.
Before giving a direction under subsection (1) the Secretary of State shall, if practicable, consult both the organisation and the authority.