(1)In the exercise of the appropriate power (as defined in subsection (3) below) provision may be made permitting a transfer in certain cases of specified securities to which the power extends through the medium of a computer-based system to be established by the Bank of England and The Stock Exchange.
(2)A transfer which (pursuant to any provision made under the appropriate power) is effected as mentioned in subsection (1) above is in this Act referred to as an “exempt transfer” and, notwithstanding anything in any enactment or in any prospectus or other document relating to the terms of issue, holding or transfer of specified securities, an exempt transfer shall be effective without the need for an instrument in writing.
(3)In this section “the appropriate power” means the power to make regulations or orders under—
(a)section 47 of the M1Finance Act 1942 (Government stock) or section 11(1)(c) of the M2Exchequer and Financial Provisions Act (Northern Ireland) 1950 (Northern Ireland Exchequer stock); or
(b)[F1paragraph 4 of Schedule 13 to the M3Local Government Act 1972][F1section 43 of the Local Government and Housing Act 1989 (borrowing powers)], paragraph 5 of Schedule 3 to the M4Local Government (Scotland) Act 1975 or section 70 of the M5Local Government Act (Northern Ireland) 1972 (local authority stocks); or
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2 Article 20 of the M6Electricity Supply (Northern Ireland) Order 1972 (electricity stock); or
[F3(d)section 21(2) of the M7Gas Act 1972 (British Gas Stock); or]
(e)subsection (4) below.
(4)Subject to subsection (5) below, with respect to any specified securities to which none of the provisions referred to in paragraphs (a) to (d) of subsection (3) above applies, the Treasury may by regulations under this subsection make the provision referred to in subsection (1) above; and any such regulations shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(5)No provision shall be made, in the exercise of the appropriate power, for the application of the procedure of an exempt transfer to any securities or securities of any class except with the agreement of the person issuing the securities or, as the case may be, securities of that class or, if the liability for those securities or securities of that class has vested in another person, of that other person.
Textual Amendments
F1Words commencing “section 43” substituted (E.W.S.) for words commencing “paragraph 4” by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(1), Sch. 11 para. 59
F2Words repealed by Electricity Act 1989 (c. 29, SIF 44:1), s. 112(4), Sch. 18
F3S. 1(3)(d) repealed (E.W.S.) by Gas Act 1986 (c. 44, SIF 44:2), s. 67(3)(4), Sch. 8 Pt. I para. 17, Sch. 9 Pt. II
Marginal Citations
M6S.I. 1972/1072 (N.I.)