§ "net revenue," in relation to any body, means the revenue of that body, after deducting there from all charges which are proper to be made, to revenue account, including, in particular, proper provision for the redemption of capital and proper provision for depreciation of assets or for renewal of assets, but not including provision for interest on debentures and debenture stock;
§ LORD CHORLEYThis is an Amendment consequential on an Amendment made under Clause 17. I beg to move.
§
Amendment moved—
Page 83, line 12, after ("authority") insert ("or a composite company").—(Lord Chorley.)
§ On Question, Amendment agreed to.
§ LORD CHORLEYThis is an Amendment which is becoming familiar to the Committee. I beg to move.
§
Amendment moved—
Page 84, line 26, leave out ("which") and insert ("whom").—(Lord Chorley.)
§ On Question, Amendment agreed to.
§ LORD RENNELL moved in the definition of "net revenue", after "capital" to insert "in pursuance of any obligation to make such provision". The noble Lord said: This is a technical Amendment. I think there has been a gap in the drafting in the definition clause under "net revenue" and my Amendment proposes to insert certain words after "redemption of capital" to cover the cases of those securities in which no provision is made for the redemption of capital—namely, irredeemable debentures—so as to safeguard shareholders from being penalized by any provision which would redeem debentures which are irredeemable, and thereby deprive them of their share of the surplus revenue or the surplus net revenue. There is an analogous case to that to which I have already drawn the attention of the noble Lord in Clause 20, at the bottom of page 3o and at the top of page 31, where reference is made to certain securities being payable at the same dates and redeemed at the same dates. There are securities which are not redeemable at any date. The words "redeemed at the same dates" seems to me to be an error in drafting, which I submit is perpetuated in this clause. I beg to move.
§
Amendment moved—
Page 85, line 18, after ("capital") insert ("in pursuance of any obligation to make such provision").—(Lord Rennell.)
§ LORD CHORLEYWith respect to the noble Lord, I submit to your Lordships that the clause as drafted at present is preferable to the one which he has tabled. The suggestion he makes, in effect, cuts down the words as they stand at the present time, because they are the words "are proper". The word "proper" covers both a legal obligation and also what is customary in the ordinary way of business. The object here is, in fact, to cover that wider field, to carry out what is a legal obligation, and to do what is the proper thing in business. The words suggested by the noble Lord, "in pursuance of any obligation to make such provision", would cover only the legal obligation, and not what was proper business conduct. I am sure your Lord- 426 ships will agree that in this case it is much better to cover the wider field and, in I he circumstances, that the clause should stand as it is and not as the noble Lord suggests.
LORD RENNELLI am quite willing to meet the noble Lord by permitting the word "proper", if he wishes, or if helps the proprieties of the position. Naturally, I do not wish to press the Amendment, but I would like to suggest that the noble Lord, between now and the Report stage, should look at it and consider it again. I cannot believe that the insertion of the words, "in pursuance of any obligation to make such provision", can restrict the obligation, but must mean, if English means anything, that provision should be made in accordance with the terms on which the obligation was originally made. My remarks about considering the position between now and Report stage apply equally, of course, to the word "redeemed" at the top of page 31. If the noble Lord will look at both those matters between now and the Report stage, I shall be obliged. Obviously there is no policy involved in this; I think we are in agreement. I cannot say that I agree with the noble Lord's contention. that the words inserted make the definition more restrictive.
§ LORD CHORLEYI am glad to give the noble Lord the assurance for which he asks. I may say that this is a technical legal matter. As it stands the word is "proper." If you qualify that by saying "proper" as an obligation, then it means "proper" as a legal obligation and it does in fact cut down the meaning of the word. It then means "proper" as a legal obligation and not proper as a means of business. I am quite happy to give the assurance for which the noble Lord asks. We will look at this point, and also the point he raised on Clause 20.
§ Amendment, by leave, withdrawn.
§ LORD CHORLEYThis is an Amendment on which I bat twice. I beg to move.
§
Amendment moved—
Page 86, line 17, leave out ("which") and insert ("whom").—(Lord Chorley.)
§ On Question, Amendment agreed to.
427§ LORD CHORLEYThe next is merely a drafting Amendment to make it quite clear that the rights are not confined to the owner whose name is actually inserted on the register, but covers everybody who is in fact an owner. I beg to move.
§
Amendment moved—
Page 86, line 21, leave out ("entered on the register as holding") and insert ("the holder of").—(Lord Charley.)
§ On Question, Amendment agreed to.
§ Clause 65, as amended, agreed to.
§ Clauses 66 and 67 agreed to.
§ First Schedule agreed to.
§ Second Schedule [Authorised undertakers to whom Part II of Act applies]:
§ 9.57 P.m.
§ LORD MORRISON moved, in Part I to leave out "Tobermory Corporation." The noble Lord said: The North of Scotland Board concluded an agreement on July 16 with Tobermory Corporation for the transfer of their electricity undertaking to the Board under Section 18 of the Hydro-Electric Development (Scotland) Act, 1943. The Corporation having ceased to be authorized undertakers, their inclusion in the Second Schedule is no longer appropriate, and the reference to them is accordingly deleted. I beg to move.
§
Amendment moved—
Page 98, line 42, leave out ("Tobermory Corporation").—(Lord Morrison.)
§ On Question, Amendment agreed to.
§ Second Schedule, as amended, agreed to.
§ Third Schedule [Issue of British Electricity Stock in satisfaction of compensation]:
§ LORD CHORLEYI am sure your Lordships will be glad that at this late hour I can score three boundaries with three balls. I beg to move.
§ Amendments moved—
§ Page 101, line 13, leave out ("which") and insert ("whom");
§ Page 101, line 25, leave out ("which") and insert ("whom");
§ Page 101, line 40 leave out ("which") and insert ("whom").—(Lord Chorley.)
§ On Question, Amendments agreed to.
§ Third Schedule, as amended, agreed to.
428§ Fourth Schedule.