HL Deb 27 October 1981 vol 424 cc1015-7

124 After Clause 56, insert the following new clause:

("Interests to be notified.

.—(1) The provisions of this section shall apply, subject to section (Interests to be disregarded) of this Act, in determining for the purposes of sections (Obligation to notify known interests in voting shares in a public company) to (Obligation to notify particulars of registered ownership of voting shares in a public company) of this Act, whether a person has a notifiable interest in any shares.

(2) Any reference to an interest in shares shall be read as including a reference to any interest of any kind whatsoever in the shares; and accordingly there shall be disregraded any restraints or restrictions to which the exercise of any right attached to the interest is or may be subject.

(3) Where any property is held on trust and any interest in shares is comprised in that property, any beneficiary of that trust who apart from this subsection does not have an interest in the shares shall be taken to have such an interest.

(4) A person shall be taken to have an interest in shares if—

  1. (a) he enters into a contract for their purchase by him (whether for cash or other consideration); or
  2. (b) not being the registered holder, he is entitled to exercise any right conferred by the holding of those shares or is entitled to control the exercise of any such right.

(5) A person shall be taken to have an interest in shares if, otherwise than by virtue of having an interest under a trust—

  1. (a) he has a right to call for delivery of the shares to himself or to his order; or
  2. (b) he has a right to acquire an interest in shares or is under an obligation to take an interest in shares;
whether in any case the right or obligation is conditional or absolute.

(6) For the purposes of subsection (4)(b) above, a person shall be taken to be entitled to exercise or control the exercise of any right conferred by the holding of shares if he has a right (whether subject to conditions or not) the exercise of which would make him so entitled or is under an obligation (whether so subject or not) the fulfilment of which would make him so entitled.

(7) Persons having a joint interest shall be taken each of them to have that interest.

(8) It is immaterial that shares in which a person has an interest are unidentifiable."").

Lord Trefgarne

My Lords, may I with the leave of your Lordships speak to Amendments Nos. 124 and 125 together? Amendment No. 124 provides a new clause to replace those parts of Section 28 of the 1967 Act which define when a person is interested in shares for the purposes of the obligation to disclose a substantial interest in shares.

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

As an amendment to Amendment 124:

124A Subsection (1), line 4, leave out ("(obligation to notify particulars of registered ownership of voting shares in a public company)") and insert ("(notification of group interests of persons acting together)").

Lord Ponsonby of Shulbrede

My Lords, I beg to move Amendment No. 124A as an amendment to Commons Amendment No. 124.

Moved, That the amendment to the amendment be agreed to.—(Lord Ponsonby of Shulbrede.)

On Question, amendment to the amendment negatived.

9.35 p.m.

As an amendment to Amendment No. 124:

124B Subsection (4)(b) at end insert ("whether such entitlement arises by reason of a legally binding right or obligation or not")

Lord Ponsonby of Shulbrede

My Lords, I beg to move.

On Question, amendment to the amendment negatived.

On Question, Motion agreed to.