Commentary on Sections Part One: Sale of the Tote Section 5: Pre-sale of shares, &c. to government
25.Section 5 provides for the issue of securities in the successor company to the Secretary of State and ancillary matters.
26.Subsections (1) and (2) enable the Secretary of State to request the successor company to issue securities to herself or her nominee. The request may specify the nature and value of the securities to be issued, the timing, and terms of the issue. Securities are defined in subsection (4) of section 12 to include shares, debentures, bonds and other securities.
27.Subsection (3) provides that a request made under subsection (1) which requires the issue of shares must specify the nominal value of the shares to be issued and the shares are to be issued as fully paid. The subsection makes provision for the treatment of shares under the Companies Act 1985 and Corporation Tax Acts as fully paid and subsection (4) makes equivalent provision for the treatment of debentures.
28.Subsection (5) prevents the Secretary of State making a request after the successor company has ceased to be wholly owned by the Crown.
29.Subsections (6) and (7) require the Treasury’s consent to be obtained before a request is made under subsection (1) and before the disposal of a security issued pursuant to a request under that subsection.