Part 2Sustainability and Renewable Energy Sources

Chapter 3Decommissioning of offshore installations

Decommissioning programmes

105AF1Section 105 notices: supplemental

1

The Secretary of State may not give a notice under section 105(2)(b) to a body corporate associated with a person (“the responsible person”) within section 105(1)(a), (b) or (c) unless the Secretary of State—

a

has given a notice to the responsible person under section 105(2)(a), and

b

is not satisfied that adequate arrangements (including financial arrangements) have been made by the responsible person to ensure that a satisfactory decommissioning programme will be carried out.

2

Subsection (1) does not apply if—

a

there has been a failure to comply with a notice under section 105(2), or

b

the Secretary of State has rejected a programme submitted in compliance with such a notice.

3

For the purposes of this section and section 105, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them, and subsections (4) to (8) set out the circumstances in which one body corporate (“A”) controls another (“B”).

4

Where B is a company, A controls B if A possesses or is entitled to acquire—

a

one half or more of the issued share capital of B,

b

such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B,

c

such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or

d

such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders.

5

Where B is a limited liability partnership, A controls B if A—

a

holds a majority of the voting rights in B,

b

is a member of B and has a right to appoint or remove a majority of other members, or

c

is a member of B and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in B.

6

In subsection (5)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.

7

In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.

8

In determining whether, by virtue of subsections (4) to (7), A controls B, A is to be taken to possess—

a

any rights and powers possessed by a person as nominee for it, and

b

any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).