SCHEDULES

SCHEDULE 15Liability of parent entities etc

I1I22Liability of parent entities for failures by subsidiary entities

1

This paragraph applies if—

a

OFCOM are satisfied that there are grounds to give an entity (“E”) a relevant decision or notice relating to a regulated service,

b

E is the provider of that service, and

c

there is an entity which is a parent undertaking in relation to E (a “parent entity”).

2

The relevant decision or notice may be given—

a

to E alone, or

b

(subject to sub-paragraph (4)) jointly to E and to a parent entity.

3

But before giving a penalty notice to a parent entity, or giving a confirmation decision to a parent entity which was not previously given a provisional notice of contravention relating to the same matter, OFCOM must give that entity an opportunity to make representations to OFCOM about—

a

the matters contained in the decision or notice, and

b

whether joint and several liability would be appropriate.

4

OFCOM may not give a relevant decision or notice to a parent entity (“P”) if—

a

P meets the condition in section 1162(2)(a) of the Companies Act in relation to E, and

b

P makes representations (under section 130(8) as applied by paragraph 1(6), or under sub-paragraph (3)) which satisfy OFCOM that P does not meet any condition in section 1162(2)(b), (c) or (d) or (4) of the Companies Act in relation to E.

5

If a relevant decision or notice is given to entities jointly as mentioned in sub-paragraph (2)(b), those entities are jointly and severally liable to comply with the requirements, or (as the case may be) pay the penalty, imposed by the decision or notice.

6

See also paragraph 5 of Schedule 13 (maximum amount of penalties: group of entities).