Explanatory note

(This note is not part of the Order)

Article 3 of this Order brings into force on 31st May 1990:

(a)

section 134 of the Companies Act 1989 (with the exception of subsection (4) of that section which substitutes a new provision for section 202(3) of the Companies Act 1985), which amends certain provisions contained in Part VI of the Companies Act 1985 (“Part VI”) relating to the disclosure of interests in shares in public companies and confers power on the Secretary of State to make further amendments to Part VI by regulations; in particular,

(i)

section 134(2) of the 1989 Act reduces from 5% to 3% the notifiable percentage at or above which an interest in shares may become disclosable under the provisions of Part VI,

(ii)

section 134(3) of the 1989 Act reduces the specified period within which notification must be made under the provisions of sections 202(1) and (4) and 206(8) of the Companies Act 1985, from 5 days to 2 days; and

(b)

repeals of enactments made by the 1989 Act, to the extent that they relate to the provisions of that Act brought into force by this Order.

Article 4 of the Order makes transitional provision in relation to interests in shares which become notifiable by virtue of the lowering of the notifiable percentage from 5% to 3% and applies Part VI to such interests.

Article 5 of this Order makes a saving provision in relation to interests in shares which became notifiable prior to the coming into force of section 134(3) (which reduces the specified period for notification).