PART IIIThe Housing Corporation

Acquisition of securities and control of subsidiaries

98Acquisition of securities and promotion of body corporate

1

The Corporation may with the consent of the Secretary of State—

a

subscribe for or acquire securities of a body corporate, and

b

promote or participate in the promotion of a body corporate.

2

In this section " securities " means shares, stock, debenture stock and other securities of a like nature.

99Control of subsidiaries

1

The Corporation shall exercise its control over its subsidiaries so as to secure that no subsidiary—

a

engages in an activity which the Corporation is not empowered to carry on, or

b

engages in an activity in a manner in which the Corporation itself could not engage by reason of a direction given to it under section 76 (directions by Secretary of State).

2

The Corporation shall also exercise its control over its subsidiaries so as to secure that no subsidiary of its—

a

borrows money from a person other than the Corporation, or

b

raises money by the issue of shares or stock to a person other than the Corporation,

without the consent of the Secretary of State.