Nuclear Energy (Financing) Act 2022

40 Decommissioning of nuclear sites: bodies corporate not “associated”

(1) In section 67 of the Energy Act 2008 (meaning of “associated” for the purposes of Chapter 1 of Part 3 of that Act), after subsection (7) insert—

“(8) This section is subject to section 67A.”

(2) After section 67 of that Act insert—

“67A Meaning of “associated”: supplementary

(1) In determining whether, by virtue of section 67, A has a significant interest in B, the following are to be disregarded—

(a) relevant share security rights that A holds in relation to B;

(b) subject to subsection (4), shares in B that are acquired by A in consequence of the exercise of relevant share security rights that A holds in relation to B;

(c) any power that A has, directly or indirectly, to secure that the affairs of B are conducted in accordance with A’s wishes by virtue of—

(i) relevant share security rights that A holds in relation to B,

(ii) arrangements that are designed to facilitate the exercise of relevant share security rights that A holds in relation to B, or

(iii) relevant asset security rights that A holds in relation to B, if A also holds relevant share security rights in relation to B.

(2) A holds “relevant share security rights” in relation to B if A holds—

(a) rights to enforce a security interest over shares in B,

(b) rights relating to enforcement of a security interest over shares in B, or

(c) rights that enable A to preserve the value of a security interest over shares in B.

(3) A holds “relevant asset security rights” in relation to B if A holds—

(a) rights to enforce a security interest over any of B’s assets,

(b) rights relating to enforcement of a security interest over any of B’s assets, or

(c) rights that enable A to preserve the value of a security interest over any of B’s assets.

(4) Subsection (1)(b) does not apply if the shares acquired by A are retained by A for a purpose other than that of preserving the value of the security interest in question or of realising it.

(5) In this section—

(a) a reference to “shares” includes a reference to rights attached to shares;

(b) a reference to A holding rights in relation to B includes a reference to—

(i) A holding those rights on trust for another person, and

(ii) A being the beneficiary of a trust of those rights;

(c) a reference to A acquiring shares in B includes a reference to—

(i) A acquiring shares in B to hold on trust for another person, and

(ii) another person acquiring shares in B to hold on trust for A;

(d) a reference to rights includes a reference to powers.”