92.Section 63 requires the Post Office company or any of its wholly owned subsidiaries to issue securities (securities are defined insection 82) upon the direction of the Secretary of State with the consent of the Treasury. Those securities shall, as directed by the Secretary of State, be issued to the Treasury or the Secretary of State, or to a person approved for the purpose of a disposal under section 67, or to the Post Office company or a relevant subsidiary (as defined in subsections (8) and(9)). Section 79 has the effect that nominees may be appointed by the Treasury or the Secretary of State for the purpose of receiving securities issued under this section. The Secretary of State’s power to direct for the purpose of section 63 ceases in the event that the Crown no longer wholly owns the Post Office company.
93.Securities issued under this section can be issued at such times and on such terms as the Secretary of State directs, but any shares issued will bear a nominal value, as directed by the Secretary of State and be treated as if fully paid for the purposes of the Companies Act 1985 or the Companies (Northern Ireland) Order 1986.
94.A relevant subsidiary is defined in subsection (8) as one which delivers, collects, receives, sorts or conveys relevant postal packets (of the type defined in section 4) in the United Kingdom or which provides a registered postal service in the United Kingdom or any other subsidiary of the Post Office company which holds shares or share rights in, or is connected to, any such subsidiary. A subsidiary is connected to another under subsection (9) for the purpose of the section if it forms part of a chain of subsidiaries of the Post Office company, each holding shares or share rights in the other, which includes the relevant subsidiary.
Commentary on Sections Part IV Reorganisation of the Post Office Section 63: Government holding in the Post Office company and certain subsidiaries