Commentary on Sections Summary and Background Section 3: Alteration of the objects of the UK Green Investment Bank
35.Subsection (1) provides that, where the Secretary of State has made an order designating the UK Green Investment Bank plc under subsection (1) of section 2, the UK Green Investment Bank plc may not alter the statement of objects in its articles of association, subject to two exceptions.
36.The first exception is where a court or other relevant authority having the power to do so orders a change to the UK Green Investment Bank plc’s articles of association. The second exception is where the Secretary of State has made an order approving the proposed alteration to the UK Green Investment Bank plc’s statement of objects.
37.Subsection (2) provides a limitation on the power provided in subsection (1)(b). The Secretary of State may only exercise the power to approve an alteration to the statement of the UK Green Investment Bank plc’s objects if the two conditions in subsections (3) and (4) are met.
38.Subsections (3) and (4) set out the two conditions. The first condition is that the Secretary of State is satisfied that the statement of the UK Green Investment Bank plc’s objects, as altered, continues to be consistent with the green purposes identified in section 1, so that the UK Green Investment Bank plc will continue to engage only in activities that contribute to achieving one or more of the green purposes. The second condition is that the Secretary of State is satisfied that the objects, as amended, will continue to ensure that the company’s investment activities, taken as a whole, would be likely to contribute to a reduction of global greenhouse gas emissions.
39.Subsection (5) provides that an order under this section approving an amendment to the UK Green Investment Bank plc’s objects is subject to affirmative resolution of Parliament.