§ 80 After Clause 46, insert the following new Clause:
§ ("Assignment or release of company's right to purchase own shares.
§ .—(1) The rights of a company under any contract approved under section 45 or (Contingent purchase contracts) of this Act or any contract for a purchase authorised under section 46 of this Act shall not be capable of assignment.
§ (2) Any agreement by a company to release its rights under any contract approved under section 45 or (Contingent purchase contracts) of this Act shall be void unless the release is approved in advance in accordance with subsection (3) below.
§ (3) The terms of the proposed release agreement must be authorised by a special resolution of the company before the company enters into the agreement; and subsections (5) to (12) of section 45 of this Act shall apply in relation to the authority for a proposed release agreement as they apply in relation to the authority for a proposed variation of an existing contract of purchase.").
§ Lord Mackay of ClashfernMy Lords, the new clause to be added by this amendment prohibits a company from assigning any of its rights under a contract of purchase authorised under Clauses 45 or 46 of this Bill or under a contingent purchase contract authorised under Amendment 79, and requires that an agreement by a company to release its rights under contracts approved under Clause 45 or Amendment No. 79 be authorised by special resolution, just as the terms of such contracts and any variation to them must be. I beg to move that this House doth agree with the Commons in their Amendment No. 80.
§ Moved, That this House doth agree with the Commons in the said amendment.—(Lord Mackay of Clashfern.)
Lord Bruce of DoningtonMy Lords, could the noble and learned Lord inform us whether this applies to companies of all kinds and not merely to PLCs?
§ Lord Mackay of ClashfernThis is a general clause, my Lords.
§ On Question, Motion agreed to.