[F1(1)As soon as the successor company ceases to be wholly owned by the Crown, the Secretary of State shall by order fix a target investment limit in relation to the shares for the time being held in that company by [F2the Treasury or the Secretary of State or their or his nominee] by virtue of any provision of this Part (in this section referred to as “”).
(2)The target investment limit shall be expressed as a proportion of the voting rights which are exercisable in all circumstances at general meetings of the successor company (in this section referred to as “the ordinary voting rights”).
(3)The first target investment limit fixed under this section shall be equal to the proportion of the ordinary voting rights which is carried by the Government shareholding at the time when the order fixing the limit is made.
(4)[F3The Treasury or the Secretary of State] may from time to time by order fix a new target investment limit in place of the one previously in force under this section; but—
(a)any new limit must be lower than the one it replaces; and
(b)an order under this section may only be revoked by an order fixing a new limit.
(5)It shall be the duty of [F4the Treasury and of] the Secretary of State so to exercise—
(a)[F5their] powers under section 63 above and [F5their] power to dispose of any shares held by [F6them] by virtue of any provision of this Part; and
(b)[F5their] power to give directions to [F5their] nominees,
as to secure that the Government shareholding does not carry a proportion of the ordinary voting rights exceeding any target investment limit for the time being in force under this section.
(6)Notwithstanding subsection (5) above, [F7the Treasury or the Secretary of State may take up, or direct any nominee of the Treasury or the Secretary of State] to take up, any rights for the time being available to [F8the Treasury or the Secretary of State], or to that nominee, as an existing holder of shares or other securities of the successor company or of any subsidiary of the successor company; but if as a result the ordinary voting rights carried by the Government shareholding at any time exceeds the target investment limit it shall be the duty of [F9the Treasury or, as the case may be,] the Secretary of State to comply with subsection (5) as soon after that time as is reasonably practicable.
(7)For the purposes of this section the temporary suspension of any of the ordinary voting rights shall be disregarded.]
Textual Amendments
F1Ss. 64-67 repealed (25.7.2003 for specified purposes, 29.12.2003 otherwise) by Communications Act 2003 (c. 21), ss. 398(2)(e), 406, 408, 411, Sch. 19(1) (with Sch. 18, Sch. 19(1) Note 1); S.I. 2003/1900, arts. 1(2), 2(1), 3(1), Sch. 1 (with art. 3(2) (as amended (8.12.2003) by S.I. 2003/3142, art. 1(3))); S.I. 2003/3142, art. 3, Sch. 1 (with art. 11)
F2Words substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(1)
F3Words substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(2)
F4Words inserted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(3)
F5Word substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(3)
F6Word substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(3)
F7Words substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(4)
F8Words substituted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(4)
F9Words inserted by S.I. 1986/2237, art. 3(1), Sch. 2 para. 5(4)
Modifications etc. (not altering text)
C1Certain functions transferred by S.I. 1986/2237, arts. 2(2)(a), 3(3)