SCHEDULES

[F2C1SCHEDULE 2D] FURTHER PROVISIONS WITH RESPECT TO CONTROLLERS OF UK COMPANIES

Annotations:
Amendments (Textual)
F2

Sch. 2D inserted (1.7.1994) by S.I. 1994/1696, reg. 35, Sch. 4

Modifications etc. (not altering text)
C1

Sch. 2D: Power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 59

Objection to existing controller

4

1

Where it appears to the F3Treasury that the criteria of sound and prudent management are not or may not be fulfilled in respect of a UK company by reason of the ability of a person who is a controller of the company to influence the company, F4the Treasury may—

a

where that person is the managing director or chief executive, serve on the company; and

b

in any other case, serve on that person,

a written notice of objection to that person continuing to be a controller of the company.

2

Before serving a notice of objection under this paragraph, the F3Treasury shall serve—

a

on the person concerned; and

b

where that person is the managing director or chief executive, on the company, a preliminary written notice stating that the F3TreasuryF5are considering serving a notice of objection under this paragraph.

3

A notice under sub-paragraph (2) above shall—

a

give particulars of the rights conferred by sub-paragraph (4) below; and

b

specify the criteria of sound and prudent management which are not or may not be fulfilled in respect of the company.

4

A person served with a notice under sub-paragraph (2) above may, within the period of one month beginning with the day on which the notice is served—

a

make written representations to the F3Treasury; and

b

if that person so requests, oral representations to an officer of the F6Treasury appointed for the purpose by the F3Treasury.

5

Where representations are made in accordance with this paragraph, the F3Treasury shall take them into consideration before serving a notice of objection.

6

The F3Treasuryshall not be obliged to disclose to the person concerned or to the company any particulars of the ground on which F7they are considering the service of a notice of objection.

7

After a notice of objection has been served on a company in relation to a person who is a managing director or chief executive, the company shall forthwith remove that person from that office.