Petroleum and Submarine Pipe-lines Act 1975

Section 1(4).

SCHEDULE 1Additional provisions relating to constitution etc of British National Oil Corporation

Appointment and tenure of members

1Provision may be made by regulations with respect to the appointment of members and the tenure of office as the chairman, a deputy chairman and a member.

Remuneration etc. of members

2The Corporation shall—

(a)pay to each member, except an official member, such remuneration and expenses as the Secretary of State may determine with the consent of the Minister for the Civil Service;

(b)reimburse to each official member any expenses incurred by him in carrying out his functions as a member.

3(1)The Corporation shall make such provision as may be determined by the Secretary of State with the consent of the said Minister for the payment of pensions, allowances or gratuities to or in respect of such members and former members as may be so determined.

(2)Where a person ceases to be a member otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the said Minister direct the Corporation to make to that person a payment of such amount as the Secretary of State may determine with the consent of the said Minister.

(3)References to a member in the preceding provisions of this paragraph do not include an official member.

Proceedings

4Provision may be made by regulations with respect to the proceedings of the Corporation including, without prejudice to the generality of the preceding provisions of this paragraph, the meetings and determinations of the Corporation and the quorum of the Corporation.

5An official member shall not be entitled to a vote on any matter.

6Subject to any regulations made in pursuance of paragraph 4 of this Schedule and to the preceding paragraph, the Corporation may regulate its own proceedings.

7The validity of any proceedings of the Corporation shall not be affected by any vacancy among the members or by any defect in the appointment of a member.

Staff

8(1)The Corporation shall appoint one member (who may be the chairman or a deputy chairman or another member but must not be an official member) to be the chief executive of the Corporation on such terms as are specified in his instrument of appointment; but a person shall not be appointed in pursuance of this sub-paragraph except with the prior approval of the Secretary of State.

(2)The functions of the chief executive shall be such as the Secretary of State and the chairman acting jointly may from time to time determine.

9The Corporation may appoint, on such terms as it thinks fit, such officers and servants of the Corporation as it thinks fit; and references in the following provisions of this Schedule to employees of the Corporation are references to persons appointed in pursuance of this paragraph.

10(1)The Corporation may pay such pensions, allowances or gratuities as it thinks fit to or in respect of any of its employees, make such payments as it thinks fit towards the provision of pensions, allowances or gratuities to or in respect of any of its employees or provide and maintain such schemes as it thinks fit (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any of its employees.

(2)If an employee of the Corporation becomes a member and was by reference to his employment by the Corporation a participant in a pension scheme maintained by the Corporation for the benefit of any of its employees, the Corporation may determine that his service as a member shall be treated for the purposes of the scheme as service as an employee of the Corporation whether or not any benefits are to be payable to or in respect of him by virtue of .paragraph 3(1) of this Schedule.

11It shall be the duty of the Corporation, except so far as it is satisfied that adequate machinery exists for achieving the purpose of this paragraph, to seek consultation with any organisation appearing to the Corporation to be appropriate with a view to the conclusion between the Corporation and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

(a)the settlement by negotiation of terms and conditions of employment of employees of the Corporation, with provision for reference to arbitration in default of such a settlement in such cases as may be determined by or under the agreements ; and

(b)the promotion and encouragement of measures affecting the safety, health and welfare of employees of the Corporation and the discussion of other matters of mutual interest to the Corporation and its employees, including the education and training of its employees and efficiency in the performance of the Corporation's functions.

Performance of functions

12The Corporation may authorise any member or employee of the Corporation and, except so far as regulations provide otherwise, any other person to perform on behalf of the Corporation such of the Corporation's functions (including the function conferred on the Corporation by this paragraph) as are specified in the authorisation.

Instruments and contracts

13Provision may be made by regulations with respect to—

(a)the execution of documents by or on behalf of the Corporation;

(b)the admission in evidence of documents purporting to be executed or issued by the Corporation or signed by a member or an employee of the Corporation;

(c)the mode of entering into contracts by or on behalf of the Corporation.

Supplemental

14In this Schedule references to the chairman, a deputy chairman and a member are respectively references to the chairman, a deputy chairman and a member of the Corporation and references to an official member are to a member appointed in pursuance of section 1(3)(c) of this Act