Part I London Regional Transport

Powers of disposal

9 Powers of disposal.

1

Without prejudice to their powers of disposal under Schedule 2 to this Act, London Regional Transport shall have power, subject to subsection (2) below, to provide for the disposal, in such manner as they think fit, of—

a

any securities of F2any subsidiary of theirs which are held by London Regional Transport or by another of their subsidiaries; or

b

the whole or any part of the undertaking of any of their subsidiaries.

2

London Regional Transport may not exercise their powers under subsection (1)(a) above except with the consent of the Secretary of State.

3

In exercising those powers London Regional Transport may, with the consent of the Secretary of State, provide for employees’ share schemes to be established in respect of any of their subsidiaries; and any such scheme may provide for the transfer of shares without consideration.

4

In this section “employees’ share scheme” means a scheme for encouraging or facilitating the holding of shares or debentures in a company by or for the benefit of—

a

the bona fide employees or former employees of the company or of a subsidiary of the company; or

b

the wives, husbands, widows, widowers or children or step-children under the age of eighteen of such employees or former employees.

5

London Regional Transport may exercise their powers under section 3 of this Act—

a

to form companies; and

b

to transfer property, rights and liabilities to companies formed by them;

for the purpose of facilitating the eventual disposal under subsection (1) above of any part of their undertaking or of the whole or any part of the undertaking of any of their subsidiaries.

6

London Regional Transport may also, for that purpose, make schemes for the transfer, between London Regional Transport and a subsidiary of theirs or between one such subsidiary and another, of any property, rights and liabilities of theirs or of any such subsidiary.

7

Section 27 of this Act applies to a scheme under subsection (6) above.

F38

In this section—

  • “disposal” means disposal—

    1. a

      by way of sale, exchange or lease,

    2. b

      by way of the grant of any option or the creation of any easement, right or privilege, or

    3. c

      in any other manner, except by way of appropriation or mortgage,

    and “dispose of” shall be construed accordingly;

  • “lease” includes an underlease and an agreement for a lease or underlease, but does not include an option to take a lease or a mortgage.