Part I The British Airways Board

Vesting of property, etc., of British Airways Board in a company nominated by the Secretary of State

8 Dissolution of the Board and transitional provisions.

(1)

Subject to the following provisions of this section and to the transitional provisions contained in Schedule 2 to this Act, the enactments mentioned in Part I of Schedule 3 to this Act shall cease to have effect on the appointed day to the extent specified in column 3 of that Part.

(2)

Where notwithstanding the provisions of section 3 of this Act any steps remain to be taken after the appointed day to secure that the vesting in the successor company by virtue of that section of any foreign property, right, liability or obligation of the Board is effective under the relevant foreign law—

(a)

the Board shall continue in existence after the appointed day notwithstanding subsection (1) above; and

(b)

section 1 of and Schedule 1 to the Act of 1977 (excluding paragraphs 7 to 10, 14 and 15) shall continue to have effect in relation to the constitution and proceedings of the Board;

until the Board is dissolved in accordance with subsection (7) below.

(3)

During any period after the appointed day when the Board’s existence is preserved by virtue of subsection (2) above (referred to below in this section as “the transitional period”) it shall be the duty of the Board and of the successor company (subject to subsection (4) below) to take all such steps as may be requisite to secure that the vesting in the successor company of any foreign property, right, liability or obligation of the Board is effective under the relevant foreign law.

(4)

The time of performance of the duties imposed on the Board and the successor company under subsection (3) above in the case of any particular property, right, liability or obligation shall be determined by the successor company in the light of any commercial factors which appear to it to be relevant to the timing of any steps required to secure effective vesting under the relevant foreign law in that case.

(5)

The Board shall have all such powers as may be requisite for the performance of its duty under subsection (3) above; but it shall be the duty of the successor company to act on behalf of the Board (so far as possible) in the performance of that duty.

(6)

Any expenses incurred by the Board in performing its duty under subsection (3) above shall be met by the successor company; and any rights, liabilities and obligations acquired or incurred by the Board during the transitional period shall become rights, liabilities and obligations of the successor company after the dissolution of the Board in accordance with subsection (7) below.

(7)

If the Board continues in existence after the appointed day by virtue of subsection (2) above the Secretary of State may by order made by statutory instrument dissolve the Board on a day specified in the order, as soon as he is satisfied that nothing further remains to be done by the Board under subsection (3) above.

F1(8)

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F2(9)

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(10)

References in this section to any foreign property, right, liability or obligation of the Board are references respectively to—

(a)

property of the Board situated in a country or territory outside the United Kingdom; and

(b)

any right to which the Board is entitled or (as the case may be) any liability or obligation to which it is subject under the law of any such country or territory.