OpenLegislation

Article 4 Prescribed Actions

Original text. Later amendments are not shown.

(1)

The following actions are actions of a prescribed kind for the purposes of section 141(2) of the Learning and Skills Act 2000:

(a)

any change to the contractual terms and conditions of any person, other than routine increases in the salary or remuneration paid by the company to any employee, executive director of the company, or to the Chief Executive of the company;

(b)

any expenditure or agreement to commit expenditure in excess of £20,000, including the staged payment of any part of such a sum, which is not included in the company’s Business Plan or Transition Plan;

(c)

entering into any contractual obligation or other liability to any person other than the Secretary of State—

(i)

in relation to which the agreed date for the full performance of the obligation or full discharge of the liability falls after 25th March 2001; and

(ii)

which is not included in the company’s Business Plan or Transition Plan;

(d)

any transfer or disposition, other than at full market value, of any asset which was valued in excess of £10,000 for the purposes of the most recent annual company accounts prepared under Part VII of the Companies Act 1985f1, or which the directors reasonably believe to have a value in excess of that sum;

(e)

any transaction, disposition or agreement, including any settlement with debtors, which has the effect of decreasing by more than £10,000 the net book value of the company’s fixed or current assets, excluding cash at a bank or in hand.

(2)

For the purposes of paragraph (1)(a), “routine” means an increase in salary or level of remuneration of any person referred to in that sub-paragraph which does not exceed the highest of any increase awarded to that person during the last three annual accounting periods, where all increases are calculated as a percentage of the salary or level of remuneration paid to that person in the previous accounting period.

(3)

For the purposes of paragraph (1)(b), in determining the total value of any expenditure or agreement to commit expenditure the company shall aggregate the value of expenditure paid or agreed to be paid to the same person in relation to goods or services of the same or similar nature.

Annotations

Footnotes

f1

1985 c. 6.