Aircraft and Shipbuilding Industries Act 1977

22Determination of rights to require the issue of securities or to nominate directors

(1)If, after the date of transfer, a person other than a Corporation or a company which comes into public ownership would, apart from this section, have—

(a)a right to require the issue of, or to subscribe for or purchase or otherwise acquire, any securities of such a company, or

(b)a right to appoint any person, or to be appointed, otherwise than by virtue of an agreement for rendering personal services, to the office of director of such a company,

that right shall cease as from the date of transfer.

(2)Where the right referred to in subsection (1) above was conferred on a person as an incident of—

(a)an agreement conferring other rights on that person, or

(b)the holding of any securities of a company,

nothing in that subsection shall affect the continued existence of any other rights or liabilities under that agreement or, as the case may be, under the terms upon which those securities were held.

(3)Where any person suffers loss by reason of the determination, by virtue of this section, of any such right relating to a company as is referred to in subsection (1) above, being a right conferred by an agreement made, or by virtue of the holding of securities issued, before the initial date, or on or after that date with the approval in writing of the Secretary of State, he shall be entitled to claim from the relevant Corporation compensation under this section in respect of that loss.

(4)Any question whether any person has a right to claim compensation under this section or as to the amount of that compensation shall, in default of agreement, be determined by arbitration under this Act; but no claim for compensation under this section shall be made after the expiry of the period of 12 months beginning on the date of transfer of the company concerned.