Paragraph 4

United Kingdom

(1)

Where it appears to the F1Treasury that the criteria of sound and prudent management are not or may not be fulfilled in respect of a UK company by reason of the ability of a person who is a controller of the company to influence the company, F2the Treasury may—

(a)

where that person is the managing director or chief executive, serve on the company; and

(b)

in any other case, serve on that person,

a written notice of objection to that person continuing to be a controller of the company.

(2)

Before serving a notice of objection under this paragraph, the Treasury shall serve—

(a)

on the person concerned; and

(b)

where that person is the managing director or chief executive, on the company, a preliminary written notice stating that the TreasuryF3are considering serving a notice of objection under this paragraph.

(3)

A notice under sub-paragraph (2) above shall—

(a)

give particulars of the rights conferred by sub-paragraph (4) below; and

(b)

specify the criteria of sound and prudent management which are not or may not be fulfilled in respect of the company.

(4)

A person served with a notice under sub-paragraph (2) above may, within the period of one month beginning with the day on which the notice is served—

(a)

make written representations to the Treasury; and

(b)

if that person so requests, oral representations to an officer of the F4Treasury appointed for the purpose by the Treasury.

(5)

Where representations are made in accordance with this paragraph, the Treasury shall take them into consideration before serving a notice of objection.

(6)

The Treasuryshall not be obliged to disclose to the person concerned or to the company any particulars of the ground on which F5they are considering the service of a notice of objection.

(7)

After a notice of objection has been served on a company in relation to a person who is a managing director or chief executive, the company shall forthwith remove that person from that office.