The NRAM plc (formerly Northern Rock plc) Consequential and Supplementary Provisions Order 2016

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision in consequence of Northern Rock plc being taken into public ownership under the Banking (Special Provisions) Act 2008 (c.2) and in connection with a further transfer of some of its business to a new company.

Northern Rock plc’s shares were taken into public ownership by the Northern Rock plc Transfer Order 2008 (S.I. 2008/432). It was renamed Northern Rock (Asset Management) plc and has since been renamed NRAM plc. Some of NRAM plc’s business is being transferred, by agreement, to a new publicly owned company incorporated as “NRAM (No. 1) Limited” and known as “StayCo”.

Article 3 provides for the validity of meetings and company resolutions of StayCo while StayCo is in public ownership.

Articles 4 and 5 enable the Treasury to remove and appoint directors of StayCo and its group undertakings, while StayCo is in public ownership.

Article 6 restricts the circumstances in which proceedings brought against directors of StayCo or its group undertakings might, but for this provision, arise during the period of public ownership.

Article 7 (together with the Schedule) disapplies certain provisions on shadow directorship and persons discharging managerial responsibility in relation to specified persons while StayCo is in public ownership.

Article 8 deems StayCo and any of its group undertakings not to be a publicly-owned company for the purposes of the Freedom of Information Act 2000 (c.36).

An impact assessment has not been produced for this instrument as no significant impact on the cost of business or the voluntary sector is foreseen.