Paragraph 7
PROVISIONS TO TAKE EFFECT ON THE INSOLVENT LIQUIDATION OF BPL
In the event of BPL or following a reconstruction permitted by Clause 6 of this Deed one or all of the Permitted Successor Companies being wound up because of its insolvency the main purpose of the Trust as set out in Clause 2 of this Deed shall be deemed to have failed in whole or where sub-clause 7.1(b) below applies in part and the following provisions of this Clause 7 shall take effect.
In the event of there being more than one Permitted Successor Company and of one (or more) but not all being wound up because of their insolvency this Clause 7 shall apply in relation only to such insolvent company or companies and the Separate Fund or Funds relating to such insolvent company or companies.
Where this Clause 7 applies in relation to more than one Permitted Successor Company it shall apply separately in relation to each of them.
The Trustees shall have power to set aside or to treat as set aside such part (if any) not exceeding one tenth of the Trust Fund as they shall in their absolute discretion decide and shall distribute such part of the Trust Fund amongst all or such one or more as they shall in their absolute discretion decide of the Beneficiaries in such shares and in such manner as the Trustees shall in their absolute discretion decide.
The Trustees shall hold the balance of the Trust Fund not set aside nor treated as set aside in accordance with sub-clause 7.2 above (“the Charitable Fund”) upon trust to apply the income and if they so decide the capital towards all or any of the following exclusively charitable objects—
the relief of poverty amongst the Beneficiaries in any manner that is exclusively charitable;
the promotion of employee share ownership and of industrial democracy in any manner that is exclusively charitable;
any other purpose that is exclusively charitable in accordance with the laws of England and Wales.
For the avoidance of doubt the Trustees shall have power to apply the whole or any part of the capital or income of the Charitable Fund towards the promotion of such charitable objects by transferring such capital or income to any other charity.
The provisions of this Deed (other than those contained in this Clause 7 and applicable to the Charitable Fund) shall not apply to the Charitable Fund except insofar as they are consistent with the promotion of such exclusively charitable objects.
Clauses 23 to 28 of this Deed shall cease to apply but the Trustees shall have power by deed to make such amendments or additions to the provisions of this Deed other than this Clause 7 as they shall from time to time think necessary or desirable for the promotion of the exclusively charitable objects set out in sub-clause 7.3 above.
The Trustees shall also have power by written resolution to make regulations consistent with this Deed for the management of the charity that would come into being in accordance with this Clause 7 and for the conduct of their business as Trustees of such charity including the calling of meetings.