Section 77 Temporary restrictions on borrowings etc.

England, Wales and Scotland

(1)

If articles of association of a successor company confer on the Secretary of State powers exercisable with the consent of the Treasury for, or in connection with, restricting the sums of money which may be borrowed or raised by the group during any period, those powers shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

(2)

For the purposes of this section an alteration of the articles of association of a successor company shall be disregarded if the alteration—

(a)

has the effect of conferring or extending any such power as is mentioned in subsection (1) above; and

(b)

is made at a time when that company has ceased to be wholly owned by the Crown.

(3)

In this section—

“group”, in relation to a company, means that company and all of its subsidiaries taken together;
“subsidiary” F1has the meaning given by F2section 1159 of the Companies Act 2006.

Annotations

Textual amendments

F1: Words substituted by S.I. 1990/1395, reg. 2
F2: Words in s. 77(3) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 102(5) (with art. 10)

Notes on Part II

Modifications

C1: Pt. II: power to repeal conferred (E.W.S.) (8.5.2003) by Electricity (Miscellaneous Provisions) Act 2003 (c. 9), s. 2(2)
C2: Pt. II (ss. 65-95) extended (15.12.2001) by S.I. 2001/4011, art. 12(1)(a)