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4.—(1) Where a passenger transport executive or a district council (“the transferring body”) have formed a company under section 59 or 67 of the Transport Act 1985 they may, subject to paragraphs (3) and (4), with the agreement of the company, by a statutory resolution resolve that every qualified employee of the company shall for the purposes of the principal regulations be deemed to be employed by the transferring body.
(2) A qualified employee is one who—
(a)during a period ending no earlier than 12 months before the start of his employment with the company was in an employment with the transferring body in which he was a pensionable employee, or
(b)immediately before the start of his employment with the company was in an employment with the transferring body in which, if he had continued in it, he might have become a pensionable employee.
(3) No resolution may be passed under this regulation after, as the case may be, a scheme has come into force under section 59(5) or (6) or 68(5) or (6) of the Transport Act 1985 or an order made under section 69 of that Act has come into operation.
(4) Where the company was formed by district councils acting jointly, a resolution passed by one of them under this regulation is of no effect unless such a resolution is passed by every one of them.
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