Commentary on provisions of Act Section 1 and Section 2: Meaning of ‘steel undertaking’ and Directions about use of assets
Section 1 defines ‘steel undertaking’ as an undertaking in England that manufactures steel.
	Section 2(1) gives the Secretary of State the power to give a notice to a steel undertaking if it appears to the Secretary of State that the assets have ceased to be used, are at risk of ceasing to be used, or it is in the public interest that their use should resume or continue. Where the Secretary of State has given a notice under Section 2(1), the Secretary of State may give directions requiring the steel undertaking and relevant persons associated with it to use specified assets in a specified way or to take (or avoid taking) specified steps to ensure the continued and safe use of the specified assets. This includes the power to direct the undertaking to enter into agreements, make payments, refrain from taking insolvency proceedings and sharing information with the Secretary of State.
	A notice or direction by the Secretary of State must be in writing and may be varied or revoked by a subsequent notice or direction. The undertaking and relevant persons associated with it must comply with any directions given by the Secretary of State.
	The power to issue directions under section 2(3) is a broad one and includes powers to require the steel undertaking to take (or not to take) specified steps. Section 2(5) gives examples of the steps that a steel undertaking could be required to take (or not to take). Other steps that a steel undertaking might be required to take (or not to take) include, for example, rescinding, varying, entering or not entering into contracts of any description, including contracts of sale, supply or carriage.