PART II continued
(1) The aggregate of any amounts outstanding by way of principal in respect of—
(a) loans made by the Secretary of State under section 78 above to successor companies in England and Wales; and
(b) sums issues under section 79 above in fulfilment of guarantees given in respect of loans made to such companies.
shall not exceed £2,000 million.
(2) The aggregate of any amounts outstanding by way of principal in respect of—
(a) relevant loans within the meaning of section 80 above; and
(b) sums issued under section 79 above in fulfilment of guarantees given in respect of loans made to successor companies in Scotland,
shall not exceed £3,000 million.
(3) In this section “successor company in England and Wales” means a company nominated for the purposes of section 65(1) or 66(1) or (2) above.
(1) Where—
(a) the same document containing listing particulars for securities of two or more successor companies; and
(b) any person’s responsibility for any information included in the document is stated in the document to be confined to its inclusion as part of the listing particulars for securities of any one of those companies,
that person shall not be treated as responsible for that information in so far as it is stated in the document to form part of the listing particulars for securities of any other of those companies.
(2) In this section—
“the 1986 Act” means the [1986 c. 60.] Financial Services Act 1986;
“listing particulars” means any listing particulars or supplementary listing particulars within the meaning of the 1986 Act;
“responsible” means responsible for the purposes of Part IV of the 1986 Act and “responsibility” shall be construed accordingly.
(1) Subsection (2) below shall have effect for the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the [1961 c. 62.] Trustee Investments Act 1961 (which provide that shares and debentures of a company shall not count as wider-range and narrower-range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of an operating company during the calendar year in which the transfer date falls (“the first investment year”) or during any year following that year.
(2) The company shall be deemed to have paid a dividend as mentioned in the said paragraph 3(b)—
(a) in every year preceding the first investment year which is included in the relevant five years; and
(b) in the first investment year, if that year is included in the relevant five years and that company does not in fact pay such a dividend in that year.
(3) In subsection (2) above “the relevant years” means the five years immediately preceding the year in which the investment in question is made or proposed to be made.
(1) Any person who, immediately before the transfer date, holds office as chairman or other member of any of the existing bodies, that is to say, the Electricity Boards and the Electricity Council, shall cease to hold office on that date.
(2) Each existing body shall continue in existence after the transfer date until it is dissolved under subsection (4) below; and the period of any such body’s continued existence is referred to in this Act as its transitional period.
(3) During the transitional period of each existing body, the body—
(a) shall consist of a chairman appointed by the Secretary of State and such one or more other persons as may be so appointed; and
(b) shall prepare such statements of accounts as the Secretary of State may direct;
and a direction under this subsection may require the auditing of any such statements of accounts by such persons as may be specified in the direction.
(4) The Secretary of State may by order, after consulting the body concerned and its successor company or companies, dissolve any existing body on a day specified in the order, as soon as he is satisfied that nothing further remains to be done by that body (whether under Schedule 17 to this Act or otherwise).
(5) An order under subsection (4) above may provide—
(a) for the preparation by such persons as may be specified in the order of a statement of accounts for the period from the end of that dealt with in the last statement of accounts prepared under subsection (3) above by the body concerned down to the dissolution of that body; and
(b) for the auditing of any such statement of accounts by such persons as may be so specified;
and the Secretary of State may with the approval of the Treasury pay to any person on whom duties are imposed by such an order such remuneration, and such travelling and other allowances, as the Secretary of State with the approval of the Treasury may determine.
(6) Any sums required by the Secretary of State for making payments under subsection (5) above shall be paid out of money provided by Parliament.
(1) The Secretary of State may pay to persons who immediately before the transfer date are the chairmen and other members of the existing bodies such sums by way of compensation for loss of office, or loss or diminution of pension rights, as the Secretary of State may with the approval of the Treasury determine.
(2) The Secretary of State may also pay to persons who immediately before the transfer date are employees of the existing bodies such sums by way of compensation for loss of employment, or loss or diminution of remuneration or pension rights, as the Secretary of State may with the approval of the Treasury determine.
(3) Any sums required by the Secretary of State for making payments under this section shall be paid out of money provided by Parliament.
(1) The following powers, namely—
(a) the power conferred on the Secretary of State by subsection (3) of section 2 of the [1963 c. 59.] Electricity and Gas Act 1963 to give directions as to the repayment of advances made by him under that section to the Electricity Council; and
(b) the power conferred on the Secretary of State by subsection (2) of section 24 of the [1979 c. 11.] Electricity (Scotland) Act 1979 to give directions as to the repayment of advances made by him under that section to a Scottish Board,
shall include power to direct the Council or Board to discharge its liabilities in respect of any advance so made by a payment to him, on such date as is specified in the direction, of such amount as is so specified.
(2) The Treasury may direct the Electricity Council or a Scottish Board to do anything specified in the direction which is requisite or expedient for the purpose of securing the discharge, or the transfer to the Treasury, of the Council’s or Board’s liabilities in respect of any foreign currency loan made to the Council or Board.
(3) Where the liabilities of the Electricity Council or a Scottish Board in respect of any foreign currency loan made to the Council or Board are to be discharged (whether in pursuance of a direction under subsection (2) above or otherwise), the Treasury may direct that the amount to be paid to the Treasury by the Council or Board for the foreign currency required for the purpose of securing the discharge shall be such amount as is specified in the direction.
(4) Where the liabilities of the Electricity Council or a Scottish Board in respect of any foreign currency loan made to the Council or Board are to be transferred to the Treasury (whether in pursuance of a direction under subsection (2) above or otherwise), the Treasury may direct the Council or Board to pay to the Treasury, on the date of the transfer, such amount as is specified in the direction.
(5) The amount specified in a direction under subsection (1), (3) or (4) above shall be the aggregate of the present values (calculated in such manner and by reference to such rate of interest as the Secretary of State with the approval of the Treasury or, as the case may be, the Treasury may determine) of—
(a) in the case of a direction under subsection (1), the payments which, if the Council’s or Board’s liabilities in respect of the advance were not discharged before the final date, would fall to be made to the Secretary of State in respect of the advance;
(b) in the case of a direction under subsection (3) or (4), the payments which, if the Council’s or Board’s liabilities in respect of the loan were not discharged or transferred before the final date, would fall to be made to the Treasury under the relevant exchange cover agreement.
(6) The Secretary of State may direct the Electricity Council to exercise its powers under section 21 of the [1957 c. 48.] Electricity Act 1957 in relation to any amount which falls to be paid by the Council in pursuance of a direction under subsection (1), (3) or (4) above in such manner as is specified in the direction under this subsection; and such a direction may in particular require contributions to be made by all or any of the Electricity Boards in England and Wales in such amounts as are specified in the direction.
(7) Any sums received by the Secretary of State in pursuance of a direction under subsection (1) above or by the Treasury in pursuance of a direction under subsection (4) above shall be paid into the National Loans Fund; and any sums received by the Treasury in pursuance of a direction under subsection (3) above shall be paid into the Exchange Equalisation Account.
(8) In this section—
“the final date”, in relation to an advance or loan, means the date on which the final payment in respect of the advance or loan falls to be made;
“foreign currency” means a currency other than sterling;
“foreign currency loan” means a loan made wholly or mainly in a foreign currency;
“the relevant exchange cover agreement”, in relation to a foreign currency loan, means the agreement made under section 1 of the [1979 c. 30.] Exchange Equalisation Account Act 1979 with respect to the payments falling to be made in respect of that loan.
(1) The Electricity Council may, from time to time during its transitional period, require any of the successor companies in England and Wales to contribute such sums as the Council, with the consent of the Secretary of State, may determine towards meeting—
(a) any liabilities of the Council with respect to corporation tax (including liabilities to pay any sums by way of interest or penalty); and
(b) any expenses incurred by the Council in connection with the determination of any such liabilities.
(2) The following, namely—
(a) any sums received by the Electricity Council during its transitional period by way of refunds of corporation tax (including any sums so received by way of repayment supplement); and
(b) any sums received by the Council by way of contributions under subsection (1) above which are not required for meeting such liabilities and expenses as are mentioned in that subsection,
may be divided, in such proportions as the Council considers appropriate, between such of the successor companies in England and Wales as the Council thinks fit.
(1) The Secretary of State may, with the approval of the Treasury, make grants to any existing body of such amounts as he thinks fit towards such expenditure incurred by that body during its transitional period as is not met—
(a) under Schedule 17 to this Act by its appropriate successor company; or
(b) in the case of the Electricity Council, by contributions required to be made under section 87 above.
(2) Grants under this section may be made subject to such conditions as the Secretary of State with the approval of the Treasury may determine.
(3) Any sums required by the Secretary of State for making grants under this section shall be paid out of money provided by Parliament.
(4) In this Part “the appropriate successor company” means—
(a) in relation to an Area Board, its successor company;
(b) in relation to any other Electricity Board or the Electricity Council, such of its successor companies as may be designated by or under its transfer scheme;
and a transfer scheme may provide for different designations for different provisions or for different purposes.
(1) For the purpose of securing that each Area Board is in broadly the same financial position on the transfer date as, on the assumptions mentioned in subsection (2) below, it would be in on that date, the Secretary of State may by order direct each Area Board to pay to the Generating Board such sums as, in relation to that Area Board, are specified in or determined by or under the order.
(2) The said assumptions are—
(a) that section 511(2) of the [1988 c. 1.] Income and Corporation Taxes Act 1988 (trades carried on by Area Boards and Generating Board treated as parts of trade of Electricity Council) and the corresponding earlier enactments had not been enacted;
(b) that at all material times corporation tax had been charged at the rate of 35 per cent.; and
(c) that any corporation tax which, on the assumptions mentioned in paragraphs (a) and (b) above, would be payable by an Area Board would be so payable before the transfer date.
Schedule 11 to this Act (which makes provision about taxation in relation to or in connection with the other provisions of this Part) shall have effect.
(1) On the transfer date all the rights and liabilities —
(a) to which the Electricity Council was entitled or subject immediately before that date under the terms of issue of British Electricity Stock; or
(b) to which the North of Scotland Hydro-Electric Board was entitled or subject immediately before that date under the terms of issue of North of Scotland Electricity Stock,
shall become by virtue of this section rights and liabilities of the Treasury.
(2) Before the transfer date there shall be paid to the Bank of England—
(a) by the Electricity Council, out of the central guarantee fund maintained under section 19 of the [1957 c. 48.] Electricity Act 1957, a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on British Electricity Stock before that date; and
(b) by the North of Scotland Hydro-Electric Board, a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on North of Scotland Electricity Stock before that date,
but excluding (in either case) any amounts represented by money in the hands of the Bank of England.
(3) The Bank of England shall deal with—
(a) money paid to them under subsection (2) above; and
(b) money already in their hands which represents such unclaimed interest or redemption money as is mentioned in that subsection,
as money entrusted to them for payment to holders of the Stock concerned and section 5 of the [1955 c. 6.] Miscellaneous Financial Provisions Act 1955 (which relates to unclaimed dividends etc. on Government Stock) shall apply accordingly.
(4) In this section—
“British Electricity Stock” means any stock created and issued under section 16(1) of the [1957 c. 48.] Electricity Act 1957 or under section 40 of the [1947 c. 54.] Electricity Act 1947;
“North of Scotland Electricity Stock” means any stock created and issued under section 13 of the [1943 c. 32.] Hydro-Electric Development (Scotland) Act 1943.
(1) Immediately before the transfer date—
(a) the central guarantee fund established under section 19 of the Electricity Act 1957 shall cease to exist; and
(b) the sums standing to the credit of that fund shall be divided between the Generating Board and the Area Boards in the appropriate proportions.
(2) In subsection (1) above “the appropriate proportions” means such proportions—
(a) as may be agreed between the Generating Board and the Area Boards not less than four weeks before the transfer date; or
(b) in default of such agreement, as the Secretary of State may determine.
In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—
“Director of a successor company (within the meaning of Part II of the Electricity Act 1989), being a director nominated or appointed by a Minister of the Crown or by a person acting on behalf of the Crown”;
and the like insertion shall be made in Part III of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.
(1) References in this Part to property, rights and liabilities of an Electricity Board or the Electricity Council are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by that body.
(2) It is hereby declared for the avoidance of doubt that—
(a) any reference in this Part to property of an Electricity Board or the Electricity Council is a reference to property of that Board or Council, whether situated in the United Kingdom or elsewhere; and
(b) any such reference to rights and liabilities of an Electricity Board or the Electricity Council is a reference to rights to which that Board or Council is entitled, or (as the case may be) liabilities to which that body is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.
(1) In this Part, unless the context otherwise requires—
“the appropriate successor company”, in relation to an existing body, has the meaning given by section 88(4) above;
“debentures” includes debenture stock;
“existing body” has the meaning given by section 84(1) above;
“generating company” means a company designated as such by the Secretary of State;
“operating company” has the meaning given by section 74(10) above;
“securities”, in relation to a company, includes shares, debentures, bonds and other securities of the company, whether or not constituting a charge on the assets of the company;
“shares” includes stock;
“Scottish electricity company” means a company designated as such by the Secretary of State;
“Scottish nuclear company” means the company designated as such by the Secretary of State;
“successor company” has the meaning given by section 71(1) above;
“supply company” has the meaning given by section 65(5) above;
“the transfer date”—
in relation to any transfer effected by subsection (1) of section 65 or subsection (5) of section 66 above, has the meaning given by the said subsection (1);
in relation to any transfer effected by subsection (4) of section 67 above, has the meaning given by subsection (3) of that section;
“transferee” and “transferor”, in relation to any transfer of property, rights and liabilities effected or proposed to be effected under this Part, mean respectively the person to whom and the person from whom they are or are to be so transferred;
“transfer scheme” has the meaning given by section 69(1) above;
“transitional period”, in relation to an existing body, has the meaning given by section 84(2) above;
“transmission company” means the company designated as such by the Secretary of State.
(2) A company shall be regarded for the purposes of this Part as wholly owned by the Crown at any time when none of the issued shares in the company is held otherwise than—
(a) by, or by a nominee of, the Treasury or the Secretary of State; or
(b) by a company which is itself wholly owned by the Crown.