The Sutton District Water Order 1988

Modification of provisions of Third Schedule

2.—(1) Section 75 of the Third Schedule (which requires shares and stock of the Company to be offered for sale by auction or tender) as applied to the undertaking by the Sutton District Water Order 1963(1) and modified in its application by the Sutton District Water Order 1971(2) shall be further modified to have effect as if at the end of that section there were added the following subsections:—

“(5) Nothing in this section shall preclude the undertakers from offering stock for subscription to employees of the undertakers and to consumers of water supplied by the undertakers or to one or other of these classes of person and the undertakers may so offer any stock which they may for the time being be authorised to issue.

(6) The undertakers may pay a commission to any person in consideration of his subscribing or agreeing to subscribe whether absolutely or conditionally for any stock offered for sale by the undertakers or for his procuring or agreeing to procure subscriptions whether absolute or conditional for such stock:

Provided that —

(a) the payment of the commission and the amount or rate per centum of the commission paid or agreed to be paid shall be disclosed in every prospectus, advertisement or other document of the undertakers relating to the offer for sale of the stock; and

(b) nothing in this section contained shall affect any power of the undertakers to pay brokerage.

(7) In this section “stock” includes “share”.”.

(2) Section 76 of the Third Schedule (which provides for the establishment of reserve and contingency funds) as applied to the undertaking with modifications by the Sutton District Water Order 1963 shall be further modified to have effect as if in subsection (1) there were inserted after the words “as they think fit” the words “(not being provisions for liabilities or charges within paragraph 89 of Schedule 4 to the Companies Act 1985(3))”.

(3) Section 77 of the Third Schedule (which places a limitation on the balance carried forward at the end of the year) as applied to the undertaking by the Sutton District Water Order 1963 shall have effect as if after the word “dividend” in paragraph (a) and after the word “dividends” in paragraph (c) there were inserted the words “together with the advance corporation tax associated therewith.”.

(1)

S.I. 1963/2128.

(2)

S.I. 1971/270.

(3)

1985 c. 6.