(1)Following the transfer to the company under section 22(8) above of property, rights, liabilities and functions of the Port Authority, the Port Authority shall have power to provide for the disposal of securities of the company in such manner, at such time or times and on such terms as they think fit.
(2)The exercise of the power under subsection (1) above requires the consent of the Secretary of State; and at any time when the company is a subsidiary of the Port Authority the Port Authority may not, without that consent, in exercise of their control over the company permit—
(a)any disposal by the company of any securities of a body corporate which is the company’s subsidiary; or
(b)any disposal by the company of any part of the company’s undertaking, or of any assets of the company (other than securities within paragraph (a) above) which appears to the Port Authority to affect materially the structure of the company’s business.
(3)Subsection (2) above as it applies to the exercise by the Port Authority of their control over the company is without prejudice to any incapacity of the company to make any such disposal as is there mentioned if that disposal would be incompatible with any statutory functions of the company.
(4)The Secretary of State may from time to time give to the Port Authority directions requiring them—
(a)to secure the issue by the company of such securities of the company as may be specified; or
(b)to exercise their power under subsection (1) above in a specified manner;
but the Secretary of State shall not give directions under paragraph (a) above at a time when the company has ceased to be a wholly-owned subsidiary of the Port Authority.
(5)In exercising his powers under subsection (4) above the Secretary of State shall have particular regard to the desirability of encouraging the disposal of the whole or a substantial part of the equity share capital of the company to—
(a)managers or other persons employed by the company; or
(b)another company the whole or a substantial part of whose equity share capital is owned by managers or other persons so employed.
(6)In subsection (4) above “specified” means specified in directions given by the Secretary of State under that subsection.