House of Commons Amendments

Session 2012 - 13
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Other Bills before Parliament

1219

House of Commons

Tuesday 23 April 2013

Consideration of Lords Message

New Amendments handed in are marked thus

Growth and Infrastructure Bill

On Consideration of a Lords Reason for insisting on a Lords Amendment disagreed to by this House

Lords Reason No. 25B

Secretary Eric Pickles

To move, That this House insists on its disagreement to Lords Amendment No. 25 but proposes

the following amendments to the words restored to the Bill by that disagreement:—

(a)


Page  34,  line  13,  after ‘£2,000,’ insert—

‘(ca)
the company gives the individual a written statement of the particulars of

the status of employee shareholder and of the rights which attach to the

shares referred to in paragraph (b) (“the employee shares”) (see

subsection (4A)),’.

(b)


Page  34,  line  38,  at end insert—

‘(4A)
The statement referred to in subsection (1)(ca) must—

(a)
state that, as an employee shareholder, the individual would not have the

rights specified in subsection (2),

(b)
specify the notice periods that would apply in the individual’s case as a

result of subsections (3) and (4),

(c)
state whether any voting rights attach to the employee shares,

(d)
state whether the employee shares carry any rights to dividends,

(e)
state whether the employee shares would, if the company were wound up,

confer any rights to participate in the distribution of any surplus assets,

(f)
if the company has more than one class of shares and any of the rights

referred to in paragraphs (c) to (e) attach to the employee shares, explain

how those rights differ from the equivalent rights that attach to the shares

in the largest class (or next largest class if the class which includes the

employee shares is the largest),

(g)
state whether the employee shares are redeemable and, if they are, at

whose option,

(h)
state whether there are any restrictions on the transferability of the

employee shares and, if there are, what those restrictions are,

Consideration of Lords Message: 23 April 2013
1220

Growth and Infrastructure Bill, continued

(i)
state whether any of the requirements of sections 561 and 562 of the

Companies Act 2006 are excluded in the case of the employee shares

(existing shareholders’ right of pre-emption), and

(j)
state whether the employee shares are subject to drag-along rights or tag-

along rights and, if they are, explain the effect of the shares being so

subject.’.

(c)


Page  34,  line  38,  at end insert—

‘( )
Where a company makes an offer to an individual for the individual to

become an employee shareholder, an acceptance by the individual of the

offer is of no effect unless seven days have passed since the day on which

the offer was made.’.

(d)


Page  35,  line  23,  at end insert—

‘“drag-along rights”, in relation to shares in a company, means the right of

the holders of a majority of the shares, where they are selling their shares,

to require the holders of the minority to sell theirs;”’.

(e)


Page  35,  line  25,  at end insert—

‘“tag-along rights”, in relation to shares in a company, means the right of

the holders of a minority of the shares to sell their shares, where the

holders of the majority are selling theirs, on the same terms as those on

which the holders of the majority are doing so.’.



© Parliamentary copyright	Revised 23 April 2013