HC Deb 25 February 2003 vol 400 cc218-9

'(1) Paragraph (1) of Part I of Schedule 2 to the 1990 Act shall have effect subject to the following amendments.

(2) For subparagraph (3) there shall be substituted—

"(3) For the purposes of this Schedule a person has control of a body corporate if that person is able, or it is reasonable to expect that person to be able, directly or indirectly to ensure that the affairs of a body are conducted in accordance with that person's wishes.

(3A) In determining whether a person controls a body corporate all relevant circumstances shall be taken into account including the level of participation in the body corporate of that person and the level of participation of other participants in the body, and if it is the case that the person does not ensure that the affairs of the body corporate are conducted in accordance with that person's wishes consistently or on a continuing basis, that fact shall be disregarded.

Without prejudice to the generality of subparagraph (3)—

  1. (a) a person has control of a body corporate if that person is beneficially entitled to more than 50 per cent. of the equity share capital in the body or possesses more than 50 per cent. of the voting power in it, and
  2. (b) a person has control of a body corporate if that person is beneficially entitled to 50 per cent. of the equity share capital in the body or possesses 50 per cent. of the voting power in it, and is party to an arrangement with another participant in the body corporate under which they agree to exercise their voting power or any of it in a particular way either generally or in relation to any particular issue or not to exercise their voting power or any of it in relation to any particular issue."

(3) Subparagraph (5) shall cease to have effect.

(4) After paragraph 3 there shall be inserted—

(3A)—(1) In this paragraph "guidance on control" means guidance on the matters which Ofcom consider should be taken into account in determining whether any person controls a body corporate within the meaning of paragraph 1(3) to (3A) above.

(2) In determining the question whether a person has control of a body corporate account shall be taken of any published guidance on control.

(3) OFCOM shall prepare guidance on control and shall publish a draft of the guidance in such manner as they consider appropriate for bringing it to the attention of persons who in Ofcom's opinion are likely to be affected by such guidance.

(4) OFCOM shall also publish, together with the draft, a notice that any person may make representations to OFCOM on the draft within such period as may be specified in the notice, not being less than one month from the date of publication.

(5) OFCOM shall take account of the representations made within the specified time in preparing the guidance on control and shall publish the guidance, not later than 3 months from the last day on which representations may be made under subparagraph (4), in such manner as they consider appropriate for bringing it to the attention of persons who in OFCOM's opinion are likely to be affected by such guidance.

(6) OFCOM shall keep the guidance on control under review and may publish revised guidance from time to time; and subparagraphs (3) to (5) above shall apply to any such revised guidance as they apply to the original guidance with any necessary modifications.

(5)In Part 2 of Schedule 2 to the 1990 Act after 5A there shall be inserted—

"5B. For the purposes of this Part two or more persons or bodies shall not be taken to control a body corporate otherwise than by virtue of paragraph 1(3A) or (3B) of Part I of this Schedule unless they are acting together in concert.".'.—[Mr. Greenway.]

Brought up, and read the First time.

Mr. Greenway

I beg to move, That the clause be read a Second time.

Mr. Speaker

With this it will be convenient to discuss the following amendments: No. 12, in page 290, line 38 [Clause 337], leave out paragraph (a).

No. 179, in page 290, line 39 [Clause 337], at end insert— '(bb) paragraph 2 (disqualification for religious bodies);'. No. 184, in page 294, line 5 [Clause 340], leave out subsections (1) and (2) and insert—

'(1) Subsection (9) of section 32 of the 1990 Act (limits on participation in nominated news providers) shall cease to have effect.'.

No. 149, in page 302, line 13, leave out Clause 347.

No. 114, in page 424, line 4, [Schedule 14], leave out from 'order' to end of line 5 and insert 'amend or repeal the preceding provisions of this Part, but any such amendment must not have the effect of increasing the restrictions on the holding of any licence and, in particular, may not increase any number (whether expressed in words or figures) in this Part'. No. 2, in page 424, line 5 [Schedule 14], at end insert—