Energy Act 2004

Initial Government holding in the transferee company

2 (1) As a consequence of the vesting, in accordance with the relevant scheme, of property, rights and liabilities in the transferee company, that company must issue to—

(a) the Treasury, or

(b) a Minister of the Crown,

such securities of the company as the Secretary of State may from time to time direct.

(2) In a case where the transferee company is a wholly-owned subsidiary of one of the Authorities, that company must, as a consequence of the vesting in that company of property, rights and liabilities, issue to the Authority in question such securities of the company as the Authority may from time to time direct.

(3) A direction under sub-paragraph (1) or (2) may be given to a company only at a time when the company is publicly owned.

(4) Securities issued in accordance with a direction under this paragraph—

(a) shall be of such nominal value as the Secretary of State may direct;

(b) shall be issued as fully paid; and

(c) shall be treated for the purposes of the Companies Act 1985 as if they had been paid up by virtue of the payment to the company of their nominal value in cash.

(5) The consent of the Treasury is required for—

(a) the exercise by the Secretary of State or either of the Authorities of a power conferred by the preceding provisions of this paragraph; or

(b) the disposal by a Minister of the Crown, or by either of the Authorities, of securities issued to him or to that Authority in accordance with this paragraph.

(6) The consent of the Secretary of State is required for the giving of a direction by either of the Authorities under sub-paragraph (2).