COMMENCEMENT AND TRANSITIONAL PROVISIONS (Hansard, 26 October 1989)

§ Mr. Redwood
I beg to move amendment No. 260, in page 198, line 27, after 'The' insert 'following provisions of this Act come into force on Royal Assent—

(a) in Part VI (mergers)—

(i) sections 137 to 140, and

(ii) paragraphs 2 to 11, 13 to 15, 17 to 19 and 21 to 24 of Schedule 19, and section 143 so far as relating to those paragraphs;

(b) in Part VIII (amendments of the Financial Services Act 1986), section 187 (offers of short-dated debentures);

(c) in Part X (miscellaneous and general provisions), the repeals made by Schedule 22 in sections 71, 74, 88 and 89 of, and Schedule 9 to, the Fair Trading Act 1973, and section 199 so far as relating to those repeals.

Mr. Deputy Speaker
With this it will be convenient to discuss the following. Amendment (a) to the proposed amendment, before (a), insert— 1254 '(a) in Part IV (amendments of company law), section 131 (application to declare dissolution of company void);'. Government amendment No. 261.

§ Mr. Redwood
My amendment proposes that certain provisions of the Bill should be brought into effect upon Royal Assent. The first set compromises certain of the provisions on mergers in part VI of the Bill, the most important of which concern the new powers to accept undertakings to divest instead of making a reference, the temporary restrictions on share dealings once a reference has been made and the improved powers for looking at creeping acquisitions. We consider that those provisions will be of sufficient immediate use to warrant early introduction and will not, on the other hand, impinge unfairly on business.
The other provision covered is clause 187. That amends section 195 of the Financial Services Act 1986, which increases from one year to five the maximum maturity which certain debentures may have if they are to be offered without a prospectus.
The change is one of a number of measures announced in the Chancellor's Budget to unify the short-term corporate bond and sterling commercial paper markets.

§ Mr. John Garrett
Which Chancellor?

§ Mr. Redwood
They are all Chancellors of the same Government. The other changes have already been implemented and this one should be made as soon as possible so as to complete the process. The other provisions of the Bill remain as at present and Government orders will be made. The Government intend to bring as many provisions as possible into force within the first six months or so of the new year. Amendment No. 261 is consequential.