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1 Civil aviation Bill 1 (1980)

handle is hein.pio/hlbamaaxqm0001 and id is 1 raw text is: Civil Aviation Bill EXPLANATORY AND FINANCIAL MEMORANDUM Part I of the Bill reduces the Public Dividend Capital of British Airways Board by £160 million. It also provides for the vesting of the present undertaking of the Board in a Com- panies Act company which will be promoted by the Secretary of State ( the successor company ). Shares in the successor company will initially be held on behalf of the Crown. The Secretary of State may give directions with respect to the disposal of shares so held. Clause 1 reduces the Public Dividend Capital of British Air- ways Board by £160 million. Clause 2 provides that on a day to be appointed by the Secretary of State all the property, rights, liabilities and obliga- tions of British Airways Board whether or not they are situated in or governed by the laws of the United Kingdom shall be vested in a successor company. Agreements and transactions of the Board shall be treated as agreements and transactions of the successor company. The successor company shall be nominated by the Secretary of State and shall be a Companies Act company limited by shares held by or on behalf of the Crown. The Secre- tary of State must consult the British Airways Board before nominating the successor company. Clause 3 provides that, as a consequence of the vesting of the Board's property, etc., in the successor company, the company shall issue such shares on such terms as the Secretary of State may direct. The persons to whom shares may be issued are specified in the clause. The clause also provides for the disposal of shares and rights acquired by virtue of the clause (whether by the Secretary of State himself or by his nominees in accord- ance with his directions) to be subject to Treasury control. Stamp duty is not to be chargeable in respect of any increase in the capital of the successor company certified by the Treasury as having been effected for the purpose of complying with the clause. Clause 4 makes provision for the financial structure of the successor company. It provides that on the day appointed for the vesting of the Board's property, etc., the Public Dividend Capital of the Board, and any liability relating to it, shall be extinguished, and that the aggregate value of the shares to be (340) 48/1 a