HL Deb 27 March 1980 vol 407 cc1176-7

313 Schedule 3, page 103, line 37, leave out paragraph 5.

314 Schedule 3, Page 104, line 33, at end insert—

"10A. In section 54 (prohibition on company providing financial assistance for purchase of own shares, etc.)—

(a) the following paragraph shall be substituted for paragraph (b) of subsection (1)—

"(b) the provision by a company in accordance with an employee share scheme (within the meaning of the Companies Act 1980) of money for the purchase of, or subscription for, fully-paid shares in the company or its holding company by the trustees of the scheme; ";

(b) after subsection (1) there shall be inserted the following subsections—

"(1A) The proviso to the foregoing subsection shall authorise a public company to give financial assistance to any person only if the company's net assets are not thereby reduced or, to the extent that those assets are thereby reduced, if the financial assistance is provided out of profits which are available for dividend.

(1B) In this section, "net assets" in relation to any company, mean the aggregate of that company's assets less the aggregate of its liabilities: and"liabilities"includes any provision (within the meaning of Schedule 8 to this Act) except to the extent that that provision is taken into account in calculating the value of any asset to the company."."


My Lords, I beg to move that this House doth agree with the Commons in their amendments.

Moved, That this House doth agree with the Commons in the said amendments.—(Lord Lyell.)

On Question, Motion agreed to.