Airports Act 1986

22 Other local authority capital controls in England and Wales

(1) For the purposes of Part VIII of the 1980 Act

(a) the amount of any advance of a capital nature made—

(i) to a public airport company by any person other than a subsidiary of the company or an authority to whom Part VIII of that Act applies, or

(ii) to a subsidiary of a public airport company by a person other than that company, any other subsidiary of that company or such an authority, and

(b) subject to subsection (2), any amount raised by the issue of any securities—

(i) by a public airport company to any person other than such an authority, or

(ii) by a subsidiary of a public airport company to any person other than that company,

shall be treated as prescribed expenditure of the controlling authority of that company.

(2) Subsection (1)(b) shall not apply to any amount raised by the issue of any securities—

(a) by a public airport company where, as a result of the issue of those securities, it ceases to be such a company ; or

(b) by a subsidiary of a public airport company where, as a result of the issue of those securities, it ceases to be such a subsidiary.

(3) Any amount repaid by a public airport company or a subsidiary of such a company in respect of any such advance as is mentioned in subsection (1)(a) shall be treated for the purposes of section 72 of the 1980 Act as a receipt of the controlling authority of that company which, by virtue of section 75(1) of that Act, is a capital receipt of the authority for the purposes of Part VIII of that Act.

(4) Where the controlling authority of a public airport company are a composite authority, subsections (1) and (3) shall have effect as if the references to the controlling authority were references to such one of the constituent councils of that authority as may be determined by agreement between those councils.

(5) It shall be the duty of the controlling authority of a public airport company to exercise their control over the company so as to ensure that the company appoints as auditors of the company only persons who, in addition to being qualified for appointment as such auditors in accordance with section 389 of the [1985 c. 6.] Companies Act 1985, are approved for appointment as such auditors by the Audit Commission for Local Authorities in England and Wales.

(6) Where the controlling authority of a public airport company are a composite authority, the duty imposed by subsection (5) is a joint duty of both or all of the constituent councils of that authority.

(7) Section 21(4) applies for the purposes of this section.