Industry Act 1980
| Jurisdiction | UK Non-devolved |
| Citation | 1980 c. 33 |
Industry Act 1980
1980 CHAPTER 33
An Act to make further provision in relation to the National Enterprise Board, the Scottish Development Agency, the Welsh Development Agency and the English Industrial Estates Corporation; to authorise the Secretary of State to acquire securities of, make loans to and provide guarantees for companies in which he acquires shares from the National Enterprise Board; to amend the Industry Act 1972 and the Industry Act 1975; to authorise the provision by the Secretary of State of an advisory service; to remove the requirement for a register of the financial interests of members of British Shipbuilders, and for connected purposes.
[30th June 1980]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The National Enterprise Board and the Scottish and Welsh Development Agencies
1 Functions of the Board and Agencies.
(1) In section 2(2) of the Industry Act 1975—
(a ) in paragraph (b ) the words ‘reorganisation or’ and paragraphs (c ) and (d ) shall cease to have effect; and
(b ) after paragraph (e ) there shall be added—
‘(f ) promoting the private ownership of interests in industrial undertakings by the disposal of securities and other property held by the Board or any of their subsidiaries.’
(2) In section 2 of the Scottish Development Agency Act 1975—
(a ) in subsection (1), in paragraph (a ), at the end there shall be added the words ‘,including in that connection the provision, maintenance or safeguarding of employment’;
(b ) in subsection (2), after paragraph (i ) there shall be added—
‘(j ) promoting the private ownership of interests in industrial undertakings by the disposal of securities and other property held by the Agency or any of their subsidiaries.’; and
(c ) subsection (1)(b ), in subsection (2)(c ) the word ‘reorganisation’, and subsection (2)(f ) shall cease to have effect.
(3) In section 1 of the Welsh Development Agency Act 1975—
(a ) in subsection (2), in paragraph (a ), at the end there shall he added the words ‘, and in that connection to provide, maintain or safeguard employment’;
(b ) in subsection (3), after paragraph (i ) there shall be added—
‘(j ) to promote the private ownership of interests in industrial undertakings by the disposal of securities and other property held by the Agency or any of their subsidiaries.’;
(c ) subsection (2)(c ), in subsection (3)(d ) the word ‘reorganisation’, and subsection (3)(e ) shall cease to have effect; and
(d ) in subsection (11) the words from ‘in connection’ to ‘above’ shall cease to have effect.
2 Transfer of property to Secretary of State.
(1) Without prejudice to any power otherwise conferred on them and notwithstanding anything in any other enactment, the National Enterprise Board, the Scottish Development Agency and the Welsh Development Agency may transfer securities or other property held by them, and may procure the transfer of securities or other property held by any of their subsidiaries, to the Secretary of State or to a nominee of his; and the power of the Secretary of State to give directions—
(a ) to the National Enterprise Board under section 7 of the Industry Act 1975 ,
(b ) to the Scottish Development Agency under section 4 of the Scottish Development Agency Act 1975, and
(c ) to the Welsh Development Agency under section 1(9) of the Welsh Development Agency Act 1975,
shall extend to the giving of directions as to the making and terms of a transfer.
(2) Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by the Secretary of State as having been made or executed for the purpose of the transfer of property to him or a nominee of his from, or from any subsidiary of, the National Enterprise Board, the Scottish Development Agency or the Welsh Development Agency.
(3) There may be defrayed out of money provided by Parliament any expenditure incurred by the Secretary of State in respect of the acquisition of property by him or a nominee of his from, or from a subsidiary of, the National Enterprise Board, the Scottish Development Agency or the Welsh Development Agency; and any sums received by him on the disposal of property so acquired shall be paid into the Consolidated Fund.
(4) In this section ‘subsidiary’ means a subsidiary as defined by section 154 of the Companies Act 1948 or section 148 of the Companies Act (Northern Ireland) 1960 .
3 Finance for companies transferred to Secretary of State.
(1) This section applies to a company if the National Enterprise Board has at any time transferred to the Secretary of State a controlling interest in the company and the Secretary of State has not since that time ceased to hold such an interest in it.
(2) Subject to subsection (3) below and section 5 of this Act, the Secretary of State may with the approval of the Treasury—
(a ) acquire securities of a company to which this section applies,
(b ) make loans to such a company on such conditions and at such rates of interest as he may with that approval determine, and
(c ) guarantee obligations (arising out of loans or otherwise) incurred by such a company.
(3) The Secretary of State shall not determine a rate of interest in respect of a loan under subsection (2)(b ) above which is lower than the lowest rate for the time being determined by the Treasury under section 5 of the National Loans Act 1968 in respect of comparable loans out of the National Loans Fund.
(4) Not later than six months after the end of any financial year in which this section has applied to one or more companies the Secretary of State shall prepare and lay before each House of Parliament a report on the exercise during that year of his powers under subsection (2) above; and the report shall specify in relation to each company which at the end of that year is a company to which this section applies—
(a ) particulars of the securities of the company held by the Secretary of State at the end of that year,
(b ) the amount then outstanding, otherwise than by way of interest, in respect of any loans to the company made under paragraph (b ) of subsection (2) above,
(c ) particulars of guarantees then subsisting which were given under paragraph (c ) of that subsection in respect of obligations incurred by the company, and
(d ) any sums paid to meet guarantees so given, to the extent that they have not by then been repaid.
(5) As soon as practicable after the holding of any general meeting of a company to which this section applies, the Secretary of State shall lay before each House of Parliament a copy of any accounts which, in accordance with any requirement of the Companies Acts 1948 to 1980, are laid before the company at that meeting, and of any documents which are annexed or attached to any such accounts.
(6) Any expenditure incurred by the Secretary of State under subsection (2) above may be defrayed out of money provided by Parliament; and any sums received by him by virtue of this section (including sums received on the disposal of securities acquired by virtue of this section) shall be paid into the Consolidated Fund.
(7) In this section and in section 5 of this Act—
‘company’ means a company within the meaning of the Companies Act 1948 or the Companies Act (Northern Ireland) 1960 ,
‘controlling interest’ means, in relation to a company, shares carrying in the aggregate more than half the voting rights exercisable at general meetings of the company,
‘shares’ includes stock,
‘subsidiary’ means a subsidiary as defined by section 154 of the said Act of 1948 or section 148 of the said Act of 1960,
and references to the transfer of securities to or the holding or acquisition of securities by the Secretary of State include references to the transfer of securities to or the holding or acquisition of securities by any nominee of his.
4 Public dividend capital.
(1) In paragraph 5 of Schedule 2 to the Industry Act 1975 , after sub-paragraph (3) there shall be inserted—
(3A) The Board may with the agreement of the Secretary of State, and shall if the Secretary of State with the approval of the Treasury requires them to do so, make payments to the Secretary of State in reduction of the public dividend capital of the Board; and any sums received by the Secretary of State in pursuance of this sub-paragraph shall be paid into the Consolidated Fund.’
(2) In paragraph 1 of Schedule 2 to the Scottish Development Agency Act 1975 , after sub paragraph (3) there shall be inserted—
(3A) The Agency may with the agreement of the Secretary of State, and shall if the Secretary of State with the approval of the Treasury...
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