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Part IVU.K. Reorganisation of the Post Office

Transfer of property etc.U.K.

62 Transfer of property etc. to nominated company.U.K.

F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Schedule 3 (which makes supplementary provision) shall have effect.

F2(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subordinate Legislation Made

P1S. 62 power exercised (5.1.2001) by S.I. 2001/8, art. 3

Textual Amendments

F1S. 62(1)-(5) omitted (1.10.2011) by virtue of Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 6; S.I. 2011/2329, art. 3

F2S. 62(7)(8) omitted (1.10.2011) by virtue of Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 6; S.I. 2011/2329, art. 3

The Post Office company etc: government holdingsU.K.

[F363 Power to direct issue of certain securities etcU.K.

(1)This section applies to—

(a)a Post Office company,

(b)a Royal Mail company, or

(c)a company in the same group as a company within paragraph (a) or (b),

that is wholly owned by the Crown.

(2)The Secretary of State may direct a company to which this section applies to issue securities to—

(a)the Secretary of State or the Treasury (or to a nominee of either of them), or

(b)a parent company that is wholly owned by the Crown.

(3)A direction must specify—

(a)the kind and amount of securities to be issued,

(b)the terms of issue, and

(c)the date at or by which the securities must be issued.

(4)Any shares issued in pursuance of a direction under this section are to be—

(a)issued as fully paid, and

(b)treated for the purposes of the Companies Acts as if they had been paid up by virtue of payment of their nominal value in cash.

(5)A direction under this section may be given only with the consent of the Treasury.

(6)Before giving a direction under this section, the Secretary of State must consult—

(a)the company to whom the direction is to be given, and

(b)if the company has a parent company, its parent company (or, if it has more than one parent company, the parent company that does not itself have a parent company).]

Textual Amendments

64 Government investment in securities of [F4certain companies].U.K.

(1)The Treasury or, with the consent of the Treasury, the Secretary of State may at any time acquire securities of[F5

(a)a Post Office company,

(b)a Royal Mail company, or

(c)a company in the same group as a company within paragraph (a) or (b).]

[F6(1A)Securities acquired under this section may be held by a nominee.]

(2)The Secretary of State shall not, without the consent of the Treasury, dispose of any securities acquired by him in pursuance of this section.

F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Words in s. 64 heading substituted (1.10.2011) by Postal Services Act 2011 (c. 5) , s. 93(2)(3) , Sch. 12 para. 8(2); S.I. 2011/2329 , art. 3

F5 Words in s. 64(1) substituted (1.10.2011) by Postal Services Act 2011 (c. 5) , s. 93(2)(3) , Sch. 12 para. 8(3) ; S.I. 2011/2329 , art. 3

F7 S. 64(3) omitted (1.10.2011) by virtue of Postal Services Act 2011 (c. 5) , s. 93(2)(3) , Sch. 12 para. 8(5) ; S.I. 2011/2329 , art. 3

The Post Office company etc: restrictions on dealingsU.K.

F865 Restriction on issue of shares to third parties.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F866 Restriction on disposals of shares to third parties.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F867 Approved disposals.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Financial provisionsU.K.

68 Loans by the Secretary of State to [F9relevant companies].U.K.

(1)The Secretary of State may, on or after the appointed day and with the approval of the Treasury, make loans to [F10a relevant company].

[F11(1A)In this Part “relevant company” means—

(a)a Post Office company,

(b)a Royal Mail company, or

(c)a company that is, or has at any time been, in the same group as a company within paragraph (a) or (b).]

(2)Interest shall be paid on loans made by the Secretary of State under this section at such rates as the Secretary of State may, with the approval of the Treasury, direct.

(3)Subject to that, the loans shall be on such terms as may be—

(a)agreed between the Secretary of State and the company to which the loan is made, and

(b)approved by the Treasury.

(4)The terms shall, in particular, include provision as to the times and methods of payment of the principal and interest.

(5)The power of the Secretary of State to make loans under this section includes power to make loans in currencies other than sterling.

(6)The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans under this section.

(7)Such sums may be issued in sterling or, where the loan is to be in a currency other than sterling, in that currency or in sterling.

(8)Any sums received by the Secretary of State by way of repayment of, or interest on, a loan made by him under this section shall be paid into the National Loans Fund.

Textual Amendments

F9Words in s. 68 heading substituted (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 9(2); S.I. 2011/2329, art. 3

69 Guarantees by the Secretary of State for [F12relevant companies].U.K.

(1)The Secretary of State may, on or after the appointed day and in such manner and on such conditions as he considers appropriate, guarantee the discharge of any financial obligation of [F13a relevant company].

(2)As soon as practicable after giving a guarantee under subsection (1), the Secretary of State shall lay a statement of the guarantee before each House of Parliament.

(3)If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), [F14the relevant company] shall make to the Secretary of State, at such times and in such manner as the Secretary of State may direct—

(a)payments, of such amounts as the Secretary of State may direct, in or towards repayment of the sums paid by the Secretary of State, and

(b)payments of interest on what is outstanding in respect of the sums paid by the Secretary of State, at such rate as the Secretary of State may direct.

(4)If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Secretary of State shall—

(a)lay a statement relating to the sums before each House of Parliament as soon as practicable after the end of the financial year in which the sums were paid, and

(b)lay a statement before each House of Parliament as soon as practicable after the end of any subsequent financial year in which there is an outstanding liability in relation to the obligation which is the subject of the guarantee.

(5)Any statement under subsection (4) shall include a statement of—

(a)any amounts received by the Secretary of State during the financial year concerned in or towards repayment of, or as interest in respect of, sums paid by him in fulfilment of any guarantee given under subsection (1), and

(b)any amounts outstanding at the end of that year in respect of sums so paid by the Secretary of State.

Textual Amendments

F12Words in s. 69 heading substituted (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 10(2); S.I. 2011/2329, art. 3

70 Extinguishment of certain liabilities.U.K.

(1)The Secretary of State may, on or after the appointed day, by order extinguish all or any of the liabilities of [F15a relevant company] in respect of—

(a)such sums paid by the Treasury, in fulfilment of guarantees given under section 38 of the M1Post Office Act 1969, as may be specified in the order, or

(b)such sums paid by the Secretary of State, in fulfilment of guarantees given under section 69 of this Act, as may be specified in the order.

(2)The Secretary of State may, on or after the appointed day, by order extinguish such liabilities to him of [F15a relevant company] as may be specified in the order; but the order shall not specify liabilities which—

(a)may be extinguished under subsection (1), or

(b)relate to taxes, duties or fines.

[F16(3)Before exercising a power under subsection (1) or (2), the Secretary of State must consult—

(a)the relevant company, and

(b)if the relevant company has a parent company, its parent company (or, if it has more than one parent company, the parent company that does not itself have a parent company).]

(5)The Secretary of State may by order repeal this section.

(6)The Secretary of State shall not exercise any power conferred on him by subsection (1), (2) or (5) without the consent of the Treasury.

Textual Amendments

F15Words in s. 70(1)(2) substituted (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 11(2); S.I. 2011/2329, art. 3

F16S. 70(3) substituted for s. 70(3)(4) (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 11(3); S.I. 2011/2329, art. 3

Marginal Citations

71 Limit on loans and other arrangements with government.U.K.

(1)The Secretary of State and the Treasury shall exercise their powers under or by virtue of this Act so as to ensure that, on and after the appointed day, the Crown’s financial arrangements with [F17relevant companies] do not at any time exceed £5,000 million or such greater sum as the Secretary of State may by order specify.

(2)For the purposes of subsection (1) the Crown’s financial arrangements with [F17relevant companies] are the aggregate of—

(a)amounts outstanding in respect of the principal of loans made under section 37 of the M2Post Office Act 1969,

(b)amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Treasury in fulfilment of guarantees given under section 38 of that Act,

(c)amounts outstanding in respect of the principal of loans made under section 68 of this Act,

(d)amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Secretary of State in fulfilment of guarantees given under section 69 of this Act,

(e)amounts outstanding in respect of the principal of debt securities issued in pursuance of section 63 of this Act, and

(f)liabilities extinguished under section 70 of this Act so far as they are not replaced with corresponding liabilities.

(3)No order shall be made under subsection (1) unless a draft of it has been approved by a resolution of the House of Commons.

(4)For the purposes of this section equivalents in sterling shall be calculated as the Secretary of State considers appropriate.

Textual Amendments

F17Words in s. 71(1)(2) substituted (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 12; S.I. 2011/2329, art. 3

Marginal Citations

72 Reserves of [F18relevant companies].U.K.

(1)The Secretary of State may, on or after the appointed day, give directions to [F19a relevant company that does not have a parent company (“the relevant company”)]

(a)requiring it to allocate to a reserve generally, or to a reserve for a particular purpose, or to cause any of its subsidiaries so to allocate to a reserve, either a specified amount or such amount as [F20the relevant company] considers appropriate,

(b)requiring it to re-allocate for a specified purpose, or to cause any of its subsidiaries so to re-allocate, the whole or any part of any amount previously allocated by [F20the relevant company] or (as the case may be) subsidiary to a reserve for some other purpose, or

(c)with respect to the application by [F20the relevant company] or any of its subsidiaries of amounts allocated to a reserve in accordance with a direction under this section.

(2)Directions requiring the allocation of any amount to a reserve may provide for it to be so allocated either at a specified time or during the course of a specified period.

(3)Directions under subsection (1)(c) may, in particular, require amounts allocated to a reserve in accordance with a direction under this section to be applied as if they were profits available for distribution within the meaning of [F21section 830 of the Companies Act 2006] (distributions to be made out of profits).

(4)Despite subsection (3), no part of a reserve to which amounts have been allocated in accordance with this section shall count as an undistributable reserve of the company concerned for the purposes of [F22section 831(4)(d) of the Companies Act 2006] (restriction on distribution of assets).

(5)For the purpose of determining under section [F23section 831 of the Companies Act 2006] whether the company concerned may make a distribution at any time, any amount for the time being standing to the credit of the reserve concerned (excluding any amount which by virtue of subsection (3) above is authorised to be, but has not yet been, applied as if it were profits available for distribution) shall be treated for the purposes of [F24section 831(4)(c) of the Companies Act 2006] as if it were unrealised profits of the company.

[F25(5A)No direction under this section may be given to, or in respect of, a company that is not wholly owned by the Crown.

(6)Before giving a direction under this section to a company, the Secretary of State must consult the company.]

(7)No direction shall be given under this section without the consent of the Treasury.

73 Statutory accounts of [F26the original holding company].U.K.

(1)For the purposes of any statutory accounts of [F26the original holding company]

(a)the transfer effected by virtue of section 62 shall be taken to have been a transfer of all the property, rights and liabilities to which the Post Office was entitled or subject immediately before the end of the last accounting year of the Post Office ending before the appointed day and to have been effected immediately after the end of that year, and

(b)the value or amount (as at the time of transfer) of any asset or liability of the Post Office taken to have been transferred to [F26the original holding company] by virtue of paragraph (a) shall be taken to be the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the corresponding statement of accounts prepared by the Post Office in relation to that year.

(2)For the purposes of any statutory accounts of [F26the original holding company] the amount to be included in respect of any item shall be determined as if anything done by the Post Office (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by [F26the original holding company].

(3)Accordingly (but without prejudice to the generality of subsection (2))—

(a)the amount to be included from time to time in any reserves of [F26the original holding company] as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Post Office had been realised and retained by [F26the original holding company], and

(b)the amount to be included from time to time in any statutory accounts of [F26the original holding company] as representing its accumulated realised losses shall be determined as if any losses realised by the Post Office had been realised by [F26the original holding company].

(4)In this section “statutory accounts”, in relation to [F26the original holding company], means any accounts of that company prepared for the purposes of any provision of [F27the Companies Act 2006] (including group accounts).

74 Further provisions relating to the capital structure of [F28certain relevant companies].U.K.

(1)If the Secretary of State so directs, [F29a company within subsection (1A)] shall be taken to have assumed a debt to the Secretary of State of such amount as may be specified in the direction.

[F30(1A)A company is within this subsection if—

(a)it is a relevant company,

(b)it is wholly owned by the Crown, and

(c)it does not have a parent company.]

(2)The terms of any such debt, including the terms as to the payment of interest and repayment, shall be such as the Secretary of State may from time to time determine.

(3)[F31A company within subsection (1A)] shall issue such debt securities of the company as the Secretary of State may direct; and any such securities shall, as the Secretary of State may direct, be issued to the Treasury or the Secretary of State [F32 (or their nominees)].

(4)Debt securities to be issued in pursuance of subsection (3) shall be issued at such time or times, and on such terms, as the Secretary of State [F33(or a nominee of the Secretary of State) ] may direct.

(5)Subsections (3) and (4) are without prejudice to any power conferred by section 63.

(6)The Secretary of State may by order repeal this section.

(7)The Secretary of State—

(a)shall not exercise any power under this section without the consent of the Treasury or before the appointed day, and

(b)shall, before exercising any such power (other than the power under subsection (6)), consult [F34the relevant company].

(8)In this Part “debt securities” means any instrument creating or acknowledging indebtedness which is issued by a company including, in particular, debentures, loan stock, bonds and certificates of deposit.

Dissolution of the Post OfficeU.K.

F3575 Dissolution of the Post Office.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Supplementary provisionsU.K.

76 Accounts of the Secretary of State in relation to loans.U.K.

(1)The Secretary of State shall, in respect of each financial year, prepare in such form and manner as the Treasury may direct, an account of—

(a)sums issued to him under section 68(6),

(b)sums received by him as mentioned in section 68(8), and

(c)the disposal by him of the sums mentioned in paragraphs (a) and (b).

(2)The Secretary of State shall send the account to the Comptroller and Auditor General not later than the end of the month of November in the following financial year.

(3)The Comptroller and Auditor General shall—

(a)examine, certify and report on the account, and

(b)lay copies of it, together with his report, before each House of Parliament.

Modifications etc. (not altering text)

C2S. 76 modified (22.3.2001) by S.I. 2001/1148, art. 25 (with art. 34)

77 Publicity requirements for certain accounts and reports F36....U.K.

[F37(A1)This section applies to—

(a)a relevant company that is wholly owned by the Crown and does not have a parent company, and

(b)the original holding company if it is wholly owned by the Crown.]

(1)[F38A company to which this section applies] shall send to the Secretary of State—

(a)a copy of all annual accounts of the company on which the company’s auditors have made a report under [F39section 495 of the Companies Act 2006], and

(b)a copy of the auditor’s report,

as soon as practicable after the report has been made.

(2)[F38A company to which this section applies] shall send to the Secretary of State a copy of the report prepared by its directors under [F40section 415 of the Companies Act 2006] in relation to any year which includes the appointed day or any subsequent year as soon as practicable after the report has been approved and signed under [F41section 419] of that Act.

[F42(2A)A company to which this section applies shall send to the Secretary of State a copy of the report prepared by its directors under section 414A of the Companies Act 2006 as soon as practicable after the report has been approved and signed under section 414D of that Act.]

(3)The Secretary of State shall lay a copy of the accounts and reports received by him under this section before each House of Parliament.

(4)In this section “annual accounts” means annual accounts (within the meaning of [F43Part 15 of the Companies Act 2006]) which relate to any year which includes the appointed day or to any subsequent year.

78 Information requirements on [F44certain relevant companies].U.K.

[F45(A1)This section applies to—

(a)a relevant company that is wholly owned by the Crown and does not have a parent company, and

(b)the original holding company if it is wholly owned by the Crown.]

(1)The Treasury may [F46serve notice on a company to which this section applies]

(a)requiring it to supply to the Treasury such information—

(i)as the Treasury may reasonably require for the performance of their functions in relation to public sector finance, and

(ii)as may be specified or described in the notice, and

(b)specifying the time, place, manner and form in which any such information is to be supplied and the person to whom it is to be supplied.

(2)If a person makes default in complying with a notice under subsection (1), the court may, on the application of the Treasury, make such order as the court considers appropriate for requiring the default to be made good.

(3)Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne—

(a)by the person in default, or

(b)if officers of a company are responsible for its default, by those officers.

(4)In this section “the court”—

(a)in relation to England and Wales or Northern Ireland, means the High Court, and

(b)in relation to Scotland, means the Court of Session.

Textual Amendments

F44Words in s. 78 heading substituted (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 18(2); S.I. 2011/2329, art. 3

F4779 Exercise of functions through nominees.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

80 Shadow directors.U.K.

(1)For the purposes of the provisions F48... listed in subsection (2) neither the Treasury nor the Secretary of State shall be regarded as a shadow director of [F49a relevant company any part of which is owned by the Crown].

[F50(2)The provisions are—

(a)section 162(6) of the Companies Act 2006 (register of directors: liability for offence);

(b)Chapter 3 of Part 10 of that Act (declaration of interest in existing transaction or arrangement);

(c)sections 190 to 196 of that Act (transactions requiring members’ approval: substantial property transactions);

(d) sections 197 to 214 of that Act (transactions requiring members’ approval: loans etc. );

(e)regulation 10(3) of the Companies (Trading Disclosures) Regulations 2008 (liability for offence), as it applies in relation to an offence under regulation 8 (disclosure of names of directors).]

81 Tax.U.K.

Schedule 4 (taxation provisions in relation to the transfer to the Post Office company) shall have effect.

82 Interpretation: Part IV.U.K.

(1)In this Part—

  • the appointed day” has the meaning given by section 62(8),

  • [F51the Companies Acts” has the meaning given by section 2 of the Companies Act 2006,

  • company” includes any body corporate,]

  • debenture” includes debenture stock,

  • debt securities” has the meaning given by section 74(8),

  • [F52any reference to a company being in the same “group” as another company is to be read in accordance with section 15(4) of the Postal Services Act 2011,

  • the original holding company” has the meaning given by section 15 of the Postal Services Act 2011,

  • any reference to a company being a “parent” of another company is to be read in accordance with section 1162 of the Companies Act 2006,

  • Post Office company” has the meaning given by section 6 of the Postal Services Act 2011,

  • relevant company” has the meaning given by section 68(1A) of this Act,

  • Royal Mail company” has the meaning given by section 2 of the Postal Services Act 2011, ]

  • securities”, in relation to a company, includes shares, debt securities and other securities of the company, whether or not constituting a charge on the assets of the company, and the right to subscribe for, or to acquire, such securities and any other rights in connection with such securities,

  • F53...

  • shares” includes stock, and

  • [F54wholly owned by the Crown” has the meaning given by section 15 of the Postal Services Act 2011. ]

(2)References in this Part to property, rights and liabilities of the Post Office are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by the Post Office.

(3)It is hereby declared for the avoidance of doubt that—

(a)any reference in this Part to property of the Post Office is a reference to property of the Post Office whether situated in the United Kingdom or elsewhere, and

(b)any reference in this Part to rights or liabilities of the Post Office is a reference to rights to which the Post Office is entitled, or (as the case may be) liabilities to which it is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

Textual Amendments

F53Words in s. 82(1) omitted (1.10.2011) by virtue of Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 12 para. 21(c); S.I. 2011/2329, art. 3

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