# Electricity Act 1989, Section 10M: Prohibition on the exercise of certain shareholder rights and rights of appointment


(1) A person must not exercise a shareholder right or a right of appointment if—
(a) the right falls within subsection (2), (3), (4) or (5);
(b) the relevant date in respect of the certified person mentioned in that subsection has been reached;
(c) the exercise of the right would or might lead the certified person to discriminate in favour of the relevant producer or supplier mentioned in that subsection; and
(d) the relevant producer or supplier is a person to whom subsection (6) applies.
(2) A right falls within this subsection if—
(a) it is a shareholder right;
(b) it is held by a person who controls a person certified on the certification ground in section 10E(3); and
(c) it is exercisable in relation to a relevant producer or supplier.
(3) A right falls within this subsection if—
(a) it is a shareholder right;
(b) it is exercisable in relation to a person certified on the certification ground in section 10E(3); and
(c) it is held by a person who controls a relevant producer or supplier.
(4) A right falls within this subsection if—
(a) it is a shareholder right;
(b) the person who holds it appointed a senior officer of a person certified on the certification ground in section 10E(3);
(c) the person appointed continues to hold that office; and
(d) the right is exercisable in relation to an electricity undertaking which is a relevant producer or supplier.
(5) A right falls within this subsection if—
(a) it is a right to appoint a senior officer of a person certified on the certification ground in section 10E(3); and
(b) the person who holds it has, within the immediately preceding period of 3 years, exercised a shareholder right in relation to an electricity undertaking which is a relevant producer or supplier.
(6) This subsection applies to a person if, in order to carry out of some or all of the activity by virtue of which the person is a relevant producer or supplier, the person—
(a) requires a licence under section 6 of this Act, section 7A of the Gas Act 1986 (licensing of gas suppliers and gas shippers) or section 3 of the Petroleum Act 1998 (licences to search and bore for and get petroleum); or
(b) would require such a licence if carrying out the activity in Great Britain.
(7) In this section—
(a) “exercise” means exercise directly or indirectly, and “exercisable” is to be interpreted accordingly; and
(b) “relevant date” means the relevant date for the purposes of section 10A(1) or (3).

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Source: https://www.legislation.gov.uk/ukpga/1989/29/section/10M (the official version)
Page: https://openlegislation.uk/electricity-act-1989/section-10M
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.