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| Restriction on disposals of shares to third parties. |
55. - (1) Neither the Treasury nor the Secretary of State nor any nominee of either of them shall, on or after the appointed day, dispose of any of the issued shares or any share rights in the Post Office company or any relevant subsidiary which are held by him.
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(2) Neither the Post Office company nor any subsidiary of that company nor any nominee of the company or subsidiary shall, on or after the appointed day, dispose of any of the issued shares or any share rights in a relevant subsidiary which are held by the company, subsidiary or nominee concerned.
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(3) Subsection (1) does not apply in relation to any disposal by the Treasury, the Secretary of State or a nominee of either of them to any other such person.
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(4) Subsections (1) and (2) do not apply in relation to any disposal for which prior approval has been given in accordance with section 56.
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| Approved disposals. |
56. - (1) Prior approval is given in accordance with this section if the proposed issue or disposal is approved by a resolution of each House of Parliament passed on a motion moved by or on behalf of the Secretary of State.
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(2) The motion shall, in particular, specify-
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(a) the size and nature of the proposed issue or disposal, |
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(b) the person to whom the proposed issue or disposal is to be made, and |
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(c) the purpose of the proposed issue or disposal. |
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(3) No such motion shall be moved by or on behalf of the Secretary of State in relation to a proposed issue or disposal of shares or share rights in the Post Office company unless-
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(a) the Post Office company has agreed to be a party to a joint venture, or another arrangement for working together with another person, which the Post Office company considers to be in its commercial interests, |
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(b) the arrangement includes the proposed issue or disposal, |
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(c) the Post Office company has recommended to the Secretary of State that the proposed issue or disposal take place, |
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(d) the Secretary of State is satisfied that the proposed issue or disposal is for the purpose of securing the arrangement in question and that the arrangement is in the commercial interests of the Post Office company, and |
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(e) the Treasury have given their consent to the proposed issue or disposal. |
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(4) No such motion shall be moved by or on behalf of the Secretary of State in relation to a proposed issue or disposal of shares or share rights in a relevant subsidiary unless-
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(a) the Post Office company or the relevant subsidiary has agreed to be a party to a joint venture, or another arrangement for working together with another person, which the Post Office company considers to be in the commercial interests of the Post Office company, |
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(b) the arrangement includes the proposed issue or disposal, |
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(c) the Post Office company has recommended to the Secretary of State that the proposed issue or disposal take place, |
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(d) the Secretary of State is satisfied that the proposed issue or disposal is for the purposes of securing the arrangement in question and that the arrangement is in the commercial interests of the Post Office company, and |
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(e) the Treasury have given their consent to the proposed issue or disposal. |
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Financial provisions |
| Loans by the Secretary of State to the Post Office company and its subsidiaries. |
57. - (1) The Secretary of State may, on or after the appointed day and with the approval of the Treasury, make loans to the Post Office company or any of its subsidiaries.
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(2) Interest shall be paid on loans made by the Secretary of State under this section at such rates as the Secretary of State may, with the approval of the Treasury, direct.
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(3) Subject to that, the loans shall be on such terms as may be-
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(a) agreed between the Secretary of State and the company to which the loan is made, and |
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(b) approved by the Treasury. |
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(4) The terms shall, in particular, include provision as to the times and methods of payment of the principal and interest.
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(5) The power of the Secretary of State to make loans under this section includes power to make loans in currencies other than sterling.
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(6) The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans under this section.
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(7) Such sums may be issued in sterling or in a currency other than sterling (whether or not the loan is to be in that currency).
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(8) Any sums received by the Secretary of State by way of repayment of, or interest on, a loan made by him under this section shall be paid into the National Loans Fund.
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| Guarantees by the Secretary of State for the Post Office company and its subsidiaries. |
58. - (1) The Secretary of State may, on or after the appointed day and in such manner and on such conditions as he considers appropriate, guarantee the discharge of any financial obligation of the Post Office company or any of its subsidiaries.
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(2) As soon as practicable after giving a guarantee under subsection (1), the Secretary of State shall lay a statement of the guarantee before each House of Parliament.
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(3) If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Post Office company or the subsidiary concerned shall make to the Secretary of State, at such times and in such manner as the Secretary of State may direct-
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(a) payments, of such amounts as the Secretary of State may direct, in or towards repayment of the sums paid by the Secretary of State, and |
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(b) payments of interest on what is outstanding in respect of the sums paid by the Secretary of State, at such rate as the Secretary of State may direct. |
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(4) If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Secretary of State shall-
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(a) lay a statement relating to the sums before each House of Parliament as soon as practicable after the end of the financial year in which the sums were paid, and |
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(b) lay a statement before each House of Parliament as soon as practicable after the end of any subsequent financial year in which there is an outstanding liability in relation to the obligation which is the subject of the guarantee. |
| Extinguishment of certain liabilities. |
59. - (1) The Secretary of State may, on or after the appointed day, by order extinguish all or any of the liabilities of the Post Office company or of any of its subsidiaries in respect of-
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(a) such sums paid by the Treasury, in fulfilment of guarantees given under section 38 of the Post Office Act 1969, as may be specified in the order, or |
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(b) such sums paid by the Secretary of State, in fulfilment of guarantees given under section 58 of this Act, as may be specified in the order. |
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(2) The Secretary of State may, on or after the appointed day, by order extinguish such liabilities to him of the Post Office company or of any of its subsidiaries as may be specified in the order; but the order shall not specify liabilities which-
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(a) may be extinguished under subsection (1), or |
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(b) relate to taxes, duties or fines. |
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(3) The Secretary of State shall not exercise any power conferred on him by this section without the consent of the Treasury.
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| Limit on loans and other arrangements with government. |
60. - (1) The Secretary of State and the Treasury shall exercise their powers under or by virtue of this Act so as to ensure that, on and after the appointed day, the Crown's financial arrangements with the Post Office company and any of its subsidiaries do not at any time exceed £5,000 million or such greater sum as the Secretary of State may by order specify.
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(2) For the purposes of subsection (1) the Crown's financial arrangements with the Post Office company and any of its subsidiaries are the aggregate of-
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(a) amounts outstanding in respect of the principal of loans made under section 37 of the Post Office Act 1969, |
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(b) amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Treasury in fulfilment of guarantees given under section 38 of that Act, |
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(c) amounts outstanding in respect of the principal of loans made under section 57 of this Act, |
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(d) amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Secretary of State in fulfilment of guarantees given under section 58 of this Act, |
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(e) liabilities extinguished under section 59 of this Act so far as they are not replaced with corresponding liabilities, and |
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(f) sums paid or treated as paid by or on behalf of the Treasury or the Secretary of State in respect of the issue of securities in pursuance of section 52 of this Act or the acquisition of securities in pursuance of section 53 of this Act. |
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(3) No order shall be made under subsection (1) unless a draft of it has been approved by a resolution of the House of Commons.
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(4) For the purposes of this section equivalents in sterling shall be calculated as the Secretary of State considers appropriate.
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